What is prohibited and what is allowed?

One of my favorite ways to get my Tenant Buyers on my lease option assignment deals to "find" the 3% to 5% option money is from relatives.Some relatives can lend from their IRA, going through an approved custodian.The relative can not be a "direct line blood relative"So no parent or grand parent.But step parent, step grandparent, uncle - aunt is ok.Get an understanding on loans from IRAs fromTrustEtc.com https://www.trustetc.com/resources/education/artic...What is prohibited https://www.trustetc.com/self-directed-ira/rules/p...Hope that gives you ideas.If that fails, finance the option (you can do that in commercial, not residential).2 checks each month - $3000 plus $500 - $1000, for option payment.

Their auction guidelines specifically state that the auctioneer is authorized to bid the wall, or in their words:"Except where prohibited by law, the auctioneer may open bidding on any property by placing a bid on behalf of the Seller and may further bid on behalf of the Seller, up to the amount of the Reserve price, by placing successive or consecutive bids for a Property, or by placing bids in response to other bidders."

I wish to capture a fee from this indirectly since I am prohibited from directly profiting from a law practice since I am not a lawyer.

The life estate document also usually prohibits the LE tenant from "wasting" the property or allowing it to deteriorate.

With custodial account every single transaction goes though a custodian so if they see a prohibited transaction - they will stop it.

Is it a prohibited transaction to use the LLC credit card to pay contractors to do work on the property or as a down payment to purchase a property? 

The reason is you are looking at a possible prohibited transaction with one wrong move, you are better off doing this with a sibling.If you do go forward I would use a legal entity, keep DETAILED BOOKS and be 100% sure that your IRA can fund 50% of major repairs etc.

Unlike Rule 505, all non-accredited investors, either alone or with a purchaser representative, must be sophisticated—that is, they must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment;Companies must decide what information to give to accredited investors, so long as it does not violate the antifraud prohibitions of the federal securities laws.

So, no issues with prohibited transactions.