Reciprocal Private Money Financing via SDIRA - Does this work

[Chris Soignier]

I recently left full time employment to start investing in RE full time.   Until now, I've been primarily concerned w/ passive MF investing, but the returns aren't yet sufficient to cover more than a small portion of my former salary.  I want to engage in the full gamut of activities, including wholesaling, sub to's, fix and flips, and ideally fix and holds (for at least a year).    

I have a pretty good amount of capital available, but the problem is that the majority of it is tied up in my IRA's, w/ the 2nd largest chunk being in my illiquid MF investments. SDIRA transaction rules seem pretty tight against using the money for any personal benefit outside my IRA. What if a friend and I set up a reciprocal lending arrangement w/ our respective IRA's? Let's just say we lent each other $200-300K simultaneously on an unsecured basis, or allocated a similar amount to fund 70% of ARV on rehabs as they're sourced?

Do any of you know if this would run afoul of any of the IRS' regs?   If not, any other pitfalls I should be aware of?   I normally wouldn't want to borrow from friends, but would have enough reserves to pay off the loan worst case.