Syndication is basically the joining of parties/individuals that are engaged in an enterprise of common interest.

As such, if a tax exempt entity like a self-directed IRA engages in such an activity on a regular or repeated basis, UBI taxation applies at pretty steep trust tax rates (max of 39.6%).The bottom line is that a self-directed IRA is not a vehicle to solve a situation you are facing personally.With $40K in an IRA, your best bet would be to act as a private lender to other investors. 

@Josh C. and @Andrew Postell, thanks to both of you for the engagement!

Its hard to engage in many aspects of Real Estate without a friendly general contractor, broker, plumber and hvac.  

People are leaving Illinois because we rank near the bottom in job growth in the Midwest and have among the highest property taxes in America,"-It's important that communities engage in careful discussion about cutbacks, and begin planning for smaller populations and smaller economic growth, said Eric Zeemering, a professor at Northern Illinois University's School of Public and Global Affairs. 

When they securitize and sell, you cease to have a "profit-and-loss" type relationship with the original lender - which is the whole reason for engaging in this type of financing. 

So at this stage I think it best that I engage the services of an attorney to get a legal opinion.Again I thank you for your views and for providing me with some serious food for thought and research.Alan 

Having never engaged in a project this large I appreciate you posting your experiences.  

“Real estate appraiser” means a person who engages in real estate appraisal activity for a fee or other valuable consideration;Except as provided in § 62-39-104, after December 31, 1991, it is unlawful for anyone to solicit an appraisal assignment, or prepare an appraisal or an appraisal report relating to real estate or real property in this state, without first obtaining a real estate appraiser's license or certificate.Now that's Tennessee, not Arizona, but I can see how a Real Estate Appraisal Commission could legitimately question the legality of online "valuations" of real estate when looking at laws similar to these.

Mr Investor, most of the women at wal-mart can't be picked up unless you secretly happen to be the incredible hulkBack to the thread; I think what the OP doesn't understand is that most of the people doing what he is describing, are not bird dogs they are sketchy wholesalers and they are trying to cut him out of the deal.If you're a schmuck and can't find your own deals one strategy is to pose as an "investor" and then try to get an inexperienced or just foolhardy wholesaler to start telling you details about property, until you can get the address or ask him to see it, and then you go get your own buyer and try to cut the original wholesaler out or just bide your time until his contract expires and then pounce.people like that are the reason waterboarding was inventedregular bird dogs are great, but for the record yeah they do engaged in illegal activity in most realistic transactions.