They want the lender to escrow the funds to repair the siding and distribute to contractor when work is complete after the sale.

Just in case the seller becomes curious asks how I derived at my numbers.

Starting to think conventional turn key purchases are only possible remotely.The Key to what I am trying to understand with building spec. is making sure one is able to appraise the development for the actual costs plus margins so the bank will distribute final payments.

Who's in charge of filing the partnership return with the IRS and distributing the K-1s to each of you at the end of the tax year?

Accounting, including auditing if required for your exemption as a security, distributions to investors, plus asset management all will take time and money to stay on top.

Without the buyer there is no distribution of funds...

So when my property manager distributes the funds each month, half goes directly into my IRA and the other half comes to me.

To clarify, a ROBS (Rollover and Business Start-up) plan is designed to enable you to use your retirement plan for seed money to start a new business without having to pay a tax or penalties on the distribution.

Then once all partners got their capital and preference returned, any distributions should be disproportionate in your favor to reward you for the expertise and sweat equity.

Would this tax be assessed to my SD IRA or would the gain flow through just as any other , tax free until I distribute it?