I understand that I will be asked along with my partner(s) to put up our own information and guarantees on the loan but what should I expect - Will they expect all members of the LLC to provide financial statements for example?  

Rooms rent for 600-800/mo each, 8 rentable rooms, mortgage is covered with cashflow, hence the reason I could guarantee pay back to a lender. 

The question I have is if I have to personally guarantee the loan from the HML isn't that violating the IRS rules of the SD IRA?

But I guarantee that it's not necessarily easy.

@Jonathan Mednick  I do enjoy this thread.And I can see your point on too much under one roof.. there was a company in Utah operating out of Indy and KC  that did this and they got them selves into a pickle and one of the issues was they were able to stave off bad situations by buying there way out to keep up appearance's until it melts down... and a lot of it stemmed from HUGE guarantee's that were just not sustainable in the asset class they were playing in .. they could do it at first with the HUGE mark ups they made.. but its a robbing peter to pay paul effect.. and leads to were the principals and sales manager are at now which is litigation of a very serious nature.Warranties:I understand how the public likes them and how a TK company can use them for marketing purposes however many TK companies feel that these can induce folks into buying a certain product over another..

In the letter it states that the money I am paying is strictly their cost for fees associated with the transfer of the property and they aren't making any profit from they sale and all they are guaranteeing me with the Quit Claim deed is any interest they have in the property so I thought that would be any mortgage that was owed to them.The house was foreclosed on before the mortgage company went bankrupt and they were awarded possession and the judicial sale order. 

Are any of your partners guaranteeing the debt?

@Karan NandaIf you decide to use SD IRA to buy a property it can be used for investment purposes only, you can not gain any personal benefits from it, nor can you do any work on the property yourself.It is possible to finance property in your IRA but you have to use non-recourse loan since providing personal guarantee is prohibited (conventional loan).

My past performance does not guarantee the future but it all comes down to property location, your advertising methods, relationship with your current tenants, and your screening process. 

Grounds for denial of issuance of license or for disciplinary action(A) In addition to Section 40-1-110, the commission may deny issuance of a license to an applicant or may take disciplinary action against a licensee who:(1) makes a substantial misrepresentation involving a real estate transaction;(2) makes false promises of a character likely to influence, persuade, or induce;(3) pursues a continued and flagrant course of misrepresentation or makes false and misleading promises through associated licensees or through any medium of advertising or otherwise;(4) in the practice of real estate demonstrates bad faith, dishonesty, untrustworthiness, or incompetency in a manner as to endanger the interest of the public;(5) represents or attempts to represent a real estate broker other than his broker-in-charge or property manager-in-charge without the express knowledge and written consent of the employing broker-in-charge or property manager-in-charge;(6) guarantees or authorizes and permits any associated licensee to guarantee future profits from the resale of real estate;(7) makes a dual set of contracts, written or otherwise, by stating a sales price higher than the actual sales price in an effort to obtain a larger loan from a lender or lending institution or for the purpose of misinforming a governmental agency or any other reason;(8) is convicted of violating the federal and state fair housing laws, forgery, embezzlement, breach of trust, larceny, obtaining money or property under false pretense, extortion, fraud, conspiracy to defraud, or has been convicted of a violent crime as defined in Section 16-1-60, has been convicted during the previous five years of a felony directly related to the practice of the profession, or has been convicted during the previous seven years of a felony, an essential element of which is dishonesty, reasonably related to the practice of the profession, or pleading guilty or nolo contendere to any such offense in a court of competent jurisdiction of this State, any other state, or any federal court;(9) fails to report to the department in writing by certified mail, within ten days, notice of conviction of a crime provided for in item (8);(10) fails, within a reasonable time, to account for or to remit any monies coming into his possession which belong to others;(11) pays a commission or compensation to an unlicensed individual for activities requiring a license under this chapter.