Also, I’m pretty new to this but I’m assuming you’d have to have an LLC in place to accept hard money or money from private lenders? 

I would focus on saving enough money that if I had a deal go bad, then that money I saved was there to cover it. 

It's not illegal provided you're dislosing it to all parties and not trying to actively hid it.

I suggest you enter private money goldmine in search botton at top right of the screen and read the previous posts....here is one that gives good perspective as well as a link to legitimate private lenders.http://www.biggerpockets.com/forums/92/topics/1488...

It is not illegal to make an Offer.  

If you are calling the licensed person off the radio AD a lot of money.

I've never had to use hard money before, so I am not sure what type of conditions are reasonable.

Quote from @Carlyn Chism:I agree with Chris on a lender that might be a scam or make you may so much money interest because of the low credit score that you make $1.00 on the flip or no money.  

It’s the same thing except it’s done in the name of the IRA and all the money comes out of the IRA and returns go back into the IRA. 

Are you looking to pay off the hard money loan, fund another investment, or cover property improvements?