With a profits interest, there is no taxation because that is an interest in the future profits and appreciation of the LLC. 

Taking money out of a multi member LLC requires advanced tax planning in order to avoid double taxation.

While you can certainly administer investments with activities such as executing contracts, paying expenses and receiving income into the plan, you put your IRA at great risk if you are out doing all the necessary marketing and deal-chasing activities that wholesaling entails.  2) Wholesaling is a dealer activity and therefore subject to taxation on Unrelated Business Taxable Income (UBTI) if conducted on a regular or repeated basis. 

@Shera Gregory@Dmitriy Fomichenko is correct in explaining that the LLC is the borrower, and so long as the lender is not a disqualified party, that is fine.The use of debt financing does create exposure to taxation known as unrelated debt financed income (UDFI) which is documented in IRS Publication 598.  

As far as taxation goes, everything is generally just considered active income except for when the loan is resold, especially after holding for 1 year.

It is when you withdraw gains, employer contributiions, or interest earned is when you begin to see the taxation.

If there are any CPAs out there that specializes in personal taxation, that would be great. 

He reaches out to his tax professional to see if there are differences in taxation.

I'm going to proceed as planned, but have to give into the terms of the city's laws (permits, taxation, density regulation, etc..).

A web search of "real estate taxation CPE" will yield quite a few options.