In most cases that is exactly why the IRA account holder wanted to partner.So my advice to you, to your potential partner and everyone else reading this: do not pull personal funds together with your IRA funds into the same deal.

There are plenty of ways to get into a bad situation if you are not careful though.The only problem is that now you have to find the note holder.

I was also told that you will have to work with an attorney that works for the note holder. 

How can i find a holder of commercial notes.

Interesting in my 30 plus years of HML lending I have never made a loan subject to a judgement.. you as lender would be put into second position and the Judgement holder could if they wanted to do a sherrifs sale and wipe you out.. the real benefit to me is landlords pulling credit..just my experience and who I write my escrow instructions..  

Probably higher priority lien holders are there (IRS,  property tax, 1st mortgage, etc).

A loan comes with an interest rate and is paid before the equity holders get paid.4.

Now buy and holders (if it approaches the 1% rule) and owner-occs could be interested. 

They can still be involved as minority interest holders in an LLC but just know you still are open to potential problems if your documents and agreement aren't on point.

Your first lien holder bank will definitely want to know why this person is lending you down payment money and what their interest is in the property.