You open yourself to much more risk in not being able to finance out of it and being stuck with hard money and those fees/penalties.

Without going down a rabbit hole here and overwhelming you, there are also creative ways to buy properties without needing to get traditional lending, but these types of deals are harder to come by and usually come with more risks. 

This option is ideal for penalty-free investment but comes with added complexity and strict IRS rules.Alternatively, a 60-Day Rollover allows you to withdraw funds and redeposit them into an IRA within 60 days to avoid penalties, though it carries the risk of missing the deadline.

Many carriers won't take new business on a risk that has a water claim within 2-3 years.

Any suggestions on how to get started, some risks to be aware of?

This establishes the legitimacy of the arrangement and protects against audit risks.

This deal stood out due to its strong resale potential and minimal risk.

The properties have unique advantages accruable to an investor who is willing to do their homework and take calculated risks.

Treat all applicants the same to stay compliant and avoid legal risk.✔ Trust Your Screening Process – If they refuse all verification methods, consider it a dealbreaker.

Then she still only makes 2% extra for taking the risk of you not paying versus a bank.