The bottom line is that you'll need to start by finding out who has power sell the property....a trustee still alive, an heir to find or any other possible lien holder.

Note holder sells the note after 1-2 years? 

That strikes me as a different model than what most buy and holder are doing.

Also, be careful of daisy-chained contract deals; I believe it isn't legal in IL anymore but it's still happening for the meantime in Indy and can drive up prices significantly - only deal with the direct contract holder or the owner of the property directly.I would recommend getting with David Toney, of DP Group, he is a great local networker and is a whiz with property acquisitions and lenders - he'd be a great connection to make if you're just getting familiar with the area.

What if the mortgage holder isn't a bank?

PropertyRadar is a software product that provides data about properties such as the date it is scheduled to go to auction, the current owner, the note holder, the amount of the outstanding note and more. 

Unfortunately, not everyone who answers the phone in the modern business world - whether self-directed IRA or otherwise - knows how to answer questions or get the appropriate resource for you if they cannot.There is no issue with an IRA or 401k participating in a LLC or partnership that uses debt, so long as there is no personal guarantee coming from the IRA holder or a disqualified party.  

Originally posted by @Charles Holder:@Brian AlfaroBadass man..

I'm amenable to partnering with him -- given that he agrees to be a passive equity holder -- but I don't have any precedents to draw from in structuring a partnership.Assuming the building is worth 100k (which the seller owns outright) and requires 200k in renovations (which I would pay for in cash and then reclaim by refinancing the finished building), what would the terms of a good partnership agreement look like?

Both the existing mortgage holder and the seller are named insureds on the policy.These sort of transactions happen every day.