Self Directed IRA Prohibited Transaction

[Andrew Ratchford]

There is a private lending fund established to provide hard money loans to rehab single family homes. Investment in the fund is not tied to a specific property. The Note and Mortgages are directly through fund. I am considering investing money from my SD IRA in this fund. In addition, there is a potential that I would later purchase a rehabbed property via a turnkey provider that was rehabbed using funding from the private lending fund, most likely with after tax money (not in the SDIRA). The turnkey provider and lending fund manager are the same individual(s) under separate business entitities. I am generally aware of prohibited transactions with SD IRAs, which include prohibition of use for personal benefit. I have a potential concern that investing in the private lending fund could be construed as potentially helping myself, if the private lending was considered to be beneficial to purchasing a completed turnkey property that was rehabbed using private lending funds from my IRA. I would appreciate any thoughts on this. Thank you.