This makes Mezzanine Debt particularly suitable for self-directed IRAs as it avoids UBIT (Unrelated Business Income Tax) risk and offers easier tax reporting via 1099-INT.

She is already invested in this as a builder and even offering financing.This is now obviously some self promotion...

Im self employed and my debt to income doesn't look good on paper.

I could also ask him to provide a report from his business (he is self employed) of his P&L and transaction reports to make sure he is making money etc. 

I'm big into learning and self development so I went for it.

They have a learn as you go mentality as far as training goes so I feel you need to be a bit more self-motivated starting out as opposed to if you worked for a more well-known brokerage with a more formal training program. 

For you, it will likely be business income / ordinary income(non portfolio) where it will be deemed active / passive depending on your level of participation.There are some court cases out there where people who originate 4 or more loans in a year are moreso deemed in the trade or business of lending money.It will depend on the original poster's taxaccountant to determine how he/she will treat the income.The one con of it being business income is that it may be subject to self-employment taxes.

Avoid this self-proclaimed guru and keep your cash.

Normally I would remove this post as self promotion- the original poster is a lender.

As long as the property generates enough cash flow to service the debt, you qualify—without the need for personal income verification.This type of loan is ideal for those serious about growing their real estate portfolio, especially if you’re self-employed or have irregular income streams.Why DSCR Loans Matter for Real Estate InvestorsWhen it comes to real estate investing, traditional loans can often be restrictive, requiring personal income verification and imposing limits on the amount you can borrow.