I am looking to invest in performing mortgage notes that are passive (no trading, note terms longer than a year & someone else finds the borrower).  

The IRA will pay for all expenses and receive all income.Flipping houses is considered a trade or business activity.  

Most new investors greatly underestimate the true cost of expenses and consequently lose money because they bought deals they thought would be profitable but were doomed to failure from the beginning.

You're just trading earning a lot of money from a few deals with a handful of borrowers to relatively small amounts from many deals.

If the SDIRA is engaging in a trade or business on a regular or repeated basis (primary focus or otherwise) then it is subject to UBTI.The code outlines that if a tax-exempt entity is engaging in a trade or business separate from its primary tax-exempt mission - such as a hospital providing healthcare - there is exposure to UBIT, such as if the hospital runs a bookstore.  

Ultimately, if the seller decides he doesn't want to sign sale documents, you won't likely convince him to do so regardless of the consequences...and I doubt any court in Texas would ever find in your favor regardless of the purchase contract.

I've been told that its better to convert a bit at a time to avoid tax consequences based on the income bracket.Thank you.

I would have expected that people in their 30's who pay their own water bill would recognize a running toilet, especially in a small home where the bathroom shares the wall with the master bedroom.On the plus side, these tenants have given me plenty of opportunities to practice being firm and "the bad guy" with low consequence problems. 

Consequently, I went on to attend his three day-seminar called “Financial Principles”.I know what you’re thinking: “Three days of running numbers through a calculator?”

In the past I've tried just giving away software in trade for beta testers but it NEVER worked out well and I would barely get a response.