Sounds like this was a TIC setup which seems an unusual investment for an SDIRA (and problematic, from what I understand.)Aren't you the beneficiary of the inherited IRA? 

Also consider Checkbook IRA vs.

Like others in the post, interest income is portfolio income.What you can do is invest a self directed IRA/roth and put this money into notes.

By private money, Im assuming you mean local people lending out their IRA funds and personal funds.

I was able to do a HELOC on my primary and tap into some of my Roth IRA $ (tax free) to come up with the 130k since all I had to my name was 25k in savings.

However, I suppose it depends on your situation.I know some people who borrow from their 401k or use an IRA to pull from.

American IRA is hosting a live session on End-of-Year Considerations for Your Self-Directed IRAs and 401(k)s on December 4th at 12:00 PM.

Client reduced price and using Direct IRA financing.

If you are purchasing an investment property, and intend on using for investment purposes only, not personal use, it might be possible for you to rollover the TSP to a Self-Directed IRA and purchase the investment property through this type of structure.

I use Advanta IRA and have been happy with the level of service that they provide.