You can invest it in real estate, stocks etc. my cup of tea is investing in mortgage notes where I know a lot of passive investors use their IRA to invest because it is mailbox money when your buying performing notes and typically they have plenty of equity and provide double digit returns

If you're passively cash flowing $2000 a month, that's not even a questions. 

There are a lot easier, more passive, ways to get that.

Please, don't get emotionally tied up just because you feel you've already put in so much effort in gaining rapport.

I'd like to buy and hold and try and build up enough passive income to eventually quit my day job as an attorney (isn't this everyone's goal?!) 

I’ve seen it time and time again, so in my opinion an investor is someone who risks something to gain something.

This will give you passive loss. 

@David DavidsonAn LLC is not required for a SEP IRA, though you may want one to gain checkbook control.

If so, then from your perspective the transaction is treated as though the LLC distributed all of its assets to the members (including you) in liquidation according to the distribution provisions of the operating agreement, and then you purchased from the other members the assets that would have deemed to have been liquidated to them in this hypothetical liquidation scenario.Of course there are some complexities here (are there any built-in gains?

I however an looking to gain tax benefits and tought it would make sense to get my own loan for the purchase.