Forbes has a habit of putting something like this out every few years.The "bad" thing about investing your IRA in real estate is that the main Wall Street players do not have control over your funds and the means to earn commissions selling financial instruments.His arguments are entirely tilted towards to negative and not providing any context or perspective.I could just as easily pick 3 or 4 historically bad stock investments (Enron) or high fee annuities, and make it sound like that was all that you could expect if you went to a conventional brokerage - which is clearly not the case.For someone who understands real estate as an asset class, there is the potential to have your IRA produce consistent returns and have true diversification away from the news-cycle volatility of conventional financial products.

It's generally a civil lawsuit filed in a magistrate or state court.

I looked into renting our house and using the 100K as a down on a new house but it makes no financial sense.

You might think that without money changing hands that it can't be binding as there's no "consideration" - but my attorney tells me that courts have held that the offer itself is a "thing of value", so the contract itself can be the consideration.It's unlikely that the unsophisticated FSBO will end up bludgeoning you with this, but if the brother-in-law turns out to be an attorney, it could go sideways.Strategically, I'd get face to face with him. 

I don't have a lot of money saved up and I currently have poor credit 580-600, but I'm interested and dedicating myself to taking the first steps of financial independence by learning the ins and outs of the real estate industry.

To be honest 140k+ of household income should put you in a pretty dominant life position even in a higher cost of living area, financially speaking - with the right plan.

If your financial situation changes between now and the refi then you will have a hard time getting your money back.

As part of my risk avoidance/Exit strategy analysis, I was taking into account the possibility of a market correction or a deeper financial trouble around the 18 or 24 month mark.

There are other strategies out there, and I don't know your financial situation, but you should plan on showing up with some money.

The reason for me wanting to do REI is to be able to achieve financial freedom and do what I truly want with my life.