If it turns out to be really serious, like described above, then you can renegotiate with the seller and/or cut bait.

All transactions involving your IRA must be "arm's length," meaning that you or any other "disqualified person" can't be involved directly or indirectly, and that is not the case as you described above. 

I dont know how else to describe it so the best I can come up to get the point across is that LSU has a lot of built-in self-policing among investors, vendors, lenders, etc.  

Consider a live in flip, we used to use terms like sweat equity to describe this tactic.Couple of lender ideas Get a co-signerTalk to local or regional banks, you will need "portfolio" lender.Get a bridge loan from hard money or private money until you quality for conventional financing.Financing will be tough. 

If you feel you would get a BIGGER return from the kind of deal you described, ask yourself why an investor would want to give you that extra money rather than keeping it for themselves.

@Anthony Patel   What you are describing is a complex situation.

DEFAULT: This is a legally binding contract for the Purchase of the Real Estate described above.

I have very similar experience with AD Lending LLC as some of you describe here.

You do not want to expose yourself to the unnecessary (and endless) liability of hiring unlicensed workers for what you're describing as full home renovations.

What you are describing is essentially a double close.