UBTI for a SDIRA Investor

[Hollis G.]

Please forgive the question if it has already been asked and answered. I was searching around BP, but did not see anything on this topic or at least the question being asked.

If a SDIRA Investor uses their SDIRA to fund a project of mine @ X% interest. I purchase and rehab the property and then resale it. I pay them back their funds plus interest, is the private investor’s SDIRA now subject to UBTI? I have been reading the IRS publication on the subject, and it does not clearly say to me. Like reading the Bible in Greek. (I have my degree in Biblical Studies w/Hebrew as the major language and Greek as the minor…LOL.)
Can my BP Veterans shed some light on the subject for me?
Thank you in advance….
Hollis G.