Cash from my SD-IRA (Roth)How did you add value to the deal?

Mynreturns are out of this world.I also love to buy some of these properties in one of my self directed ROTH IRA'S  so that I never to pay taxes on these huge gains.I just got 3 more houses ranging in price from 19k to 29k from last year's tax sale.It's still mostly passive for me because I have my handyman fix up the houses then I get them rented for $1000 or more per month.

Peter,Have you ever considered partnerships or joint ventures using a Self-Directed IRA? 

IRA service providers don't set the rules - IRS does.

 I am looking to become a private lender and have heard about setting up a self directed IRA so that the interest can go back to the IRA and grow tax free, but....What about the set up fee, which I understand can be $1200+ and then quarterly fees?

You are ultimately creating a transaction between yourself and your IRA.  

There are couple major problems: IRA account holder is considered to be a "disqualified person" to the IRA itself and the rules prohibit any direct or indirect transaction between qualified plan and a disqualified person.

Where do you have your Self Directed IRA?

They can also be a great way to build your retirement funds by investing in them using a Self-Directed IRA.

I wrote about this topic before: https://www.biggerpockets.com/forums/51-tax-legal-issues-contracts-self-directed-ira/topics/996587-explained-tax-consequences-of-k-1-syndicationsPreferred return refers to distributions.