You really will never arrive at the scenario you describe.

(If the written plans outline and describe all phases of the rehabilitation, this will be accepted as written plans and specifications);The written plans must be completed before the physical work on the rehabilitation begins; and It can be reasonably expected that all phases of the rehabilitation will be completed.The property must be placed in service.

He showed me one of the listings and started to describe what he felt needed to be done.

In a way, she works in real estate even though she would never describe it like that.

Well done Daniel, I think you just described the unicorn we've all been hunting for.

@Juan ContrerasThere is no value in doing it the way you described, it will only make it more difficult.  

@Mary El, you probably just need to slow your roll and take the emotion out of it, from what you've described you didn't really find a deal, redevelopment is basically speculation and is rare for you to make that much tearing down an existing building, even in expensive markets. 

What you are describing is a partnership and you do really want it to be memorialized in a partnership agreement.  

That is how a lot of investors end up going with hard money lenders, making a lot of moves can definitely affect credit score in all the ways that have already been described.

In your case, just as you described in your original post, you will receive indirect benefit from such loan, that is what makes such transaction prohibited.Just remember for the future: all transactions involving your IRA must be "arms length" - disqualified person can't be involved in such transaction in any capacity, directly or indirectly.