A self directed IRA for example can invest in real estate. 

Hi BP,I have an investor who is willing to take money out of his IRA to invest in a multifamily building.

It is not tax efficient to hold rental property in an Ira.

We buy and hold real estate in IRAs/401ks, and structure deals that are tax advantaged.

Credit Cards Retirement Accounts - IRA, 401K, etc.HELOCPartnerBorrow Against Life Insurance

A lot of forum members are very knowledgeable in their respective fields related to real estate investing, whether that is real estate sales, wholesaling, flipping, rentals, lending, self-directed IRA and Solo 401k investing, or tax and legal guidance.Discounts on some products and services are offered to BP members: https://www.biggerpockets.com/perks/proIf you haven’t been to it already, you might want to check out the BP blog: https://www.biggerpockets.com/renewsblog/The site has quite a few tools that can be helpful for new members.

I'm a newbie wondering if I find a private lender willing to use their IRA to help fund a deal, are there any penalties or drawbacks for withdrawing that money from the IRA? 

I'd suggest you learn about Checkbook Control IRAs.

@Kevin AllenYes you can partner with an Ira.

A lot of forum members are very knowledgeable in their respective fields related to real estate investing, whether that is real estate sales, wholesaling, flipping, rentals, lending, self-directed IRA and Solo 401k investing, or tax and legal guidance.The site has quite a few tools that can be helpful for new members.