There are pros and cons to either.I know things are a little different up here, but when lenders (TD is one with whom we deal) tell us we are responsible for the appraisal fee, we respond with "No problem, but if we pay for it, we get a copy"  - our experience has been the lender with agrees, or decided to eat the cost of the appraisal themselves.In Canada, we only see "origination" or "diligence/administration" fees in commercial lending (on residential mortgages, it's all baked into the cost of doing business), however I would contend that the cost of an appraisal is part of the cost of processing the loan and should be covered from their 1% origination fee.

So, the IRA can use leverage and will get a higher cash-on-cash return as a result, but, there is administrative complexity and minimal tax cost associated with doing so.

In addition, the loans are "No Cost" meaning that all legal and administrative fees are to be paid by the borrower.

I pushed the contact an administrator tab and sent a message- but since I can't check my messages i'm not sure how I can find out what's going on.

Seller would not necessarily need to own property free-and-clear.For example:Seller is administrator of his/her deceased Mother's probate estate with full authority (meaning no court confirmation required, for simplicity sake). 

Two weeks later the estate administrator accepted.  

Administration process is currently in progress and are currently opened @Joshua Djieya

Anybody who is telling you that you may not administratively manage an IRA owned property is facilitating their business model rather than providing solid legal guidance.What we do work with is the framework if the IRS guidelines as outlined in IRS publication 590 A & B and Internal Revenue Code section 4975 dealing with disqualified parties.  

If you are inactive for a period of time there is an administrative dissolution  and your company  is no longer a legal entity.

Also, the new administration has taken a more negative view of adding basement units than their predecessors.