Honest... not great but we had other tax reasons to get into them.   

Any tax pro who is familiar with REI will be able to help you.

Learned that lesson the hard way.

If you were able to increase the value of the property significantly after the rehab, then you could bring the deal to a community bank  to refinance and take the hard money lender out.You keep all the equity and don’t have to file a partnership return for your annual tax return, which can be costly.  

Also look back on their application and see if you missed any 'red flags" so this can be a valuable learning experience for you.

It does not appear the lender used an attorney to draft the note, as its the worst note I have ever seen for a $2M loan.Lessons learned: if you want to be a professional, then act like one.

Lessons learned?

The sellers you are dealing with in these situations don't deal with prorating Taxes, or any other kind of prorations, that is what an escrow agent does. 

There are two reasons this is a bad idea.Investing with an SDIRA (assuming it is not a Roth) will often result in paying significantly more taxes. 

Technically it would be best to get a C Corporate or S Corp. to flip properties and since you are considered a dealer if you do several properties a year and this could have negative tax consequences in an LLC.