Scott, my position is that banks' underwriting models are seriously flawed and that banks create booms and busts in real estate and I have written a whole 200 page book to outline the problem and recommend solutions to eliminate booms and busts in real estate forever with the engagement of private money.What position are you taking then?

Your LLC (which I assume owns the property), gives the IRA a deed of trust (or mortgage, depending on the state) and a promissory note that outlines the terms.

It outlines ways to get into real estate investing with very little funds available & in use.

@Jeffrey Palmer, what you describe sounds like a principal-to-principal lending transaction and would not require a license unless you fall under the frequency outlined in the civil code.

If you have not smiled yet today....http://www.irishtimes.com/news/crime-and-law/engineer-outlines-dangers-of-throwing-items-at-lingerie-parties-1.1711230

Folks who have multiple Non Owner Occupied loans do so under the same guidelines that have been generically outlined here.

I live in Los Angeles and I'm currently seeking an investment property out of state for the same reasons you outlined above.

You could develop a paragraph that outlines all your thoughts on investing in rental properties.

The purchase contract would outline the details of the downpayment (x dollars a month toward downpayment) and the closing date, etc.

Hey @Nate Wiger, as a few members already outlined, there is not true hands off investment, but with an established team in the area it only takes a small amount of time to check in on your properties.I work with a lot of investors from CA that 1031 into small multi-family or multiple single family properties in the Phoenix/Scottsdale areas for long, mid, and short-term rentals.