In the IRS lingo, it is called a "prohibited transaction" and can cause a collapse of your entire IRA.You may "borrow" your IRA funds for 60 days (there're rules to follow), but 2 months are usually two short to finish the rehab and sell the property - assuming it is a flip.

In some cases, you might have some hoops to jump through.Here are a few thoughts:-  Almost all REO contracts will prohibit you switching financing options in the middle of the transaction.-  You can typically choose to use your own closing agent for an REO closing (though the bank will no longer pay for title costs if you do).  

@Rob Beland Negotiating even the interest on back taxes is likely prohibited by state laws, but hey, it's worth asking I guess.

Here is a directoryhttp://www.biggerpockets.com/hardmoneylendersYou can also seek out a JV Partnership like @Jeff Wallenius suggested but deal making on the forums is prohibited, but you are more than welcome to post about it in the Marketplace where deal making and financing/partnerships are postedhttp://www.biggerpockets.com/forums/517-real-estat...

Regardless of whose retirement funds are being used, there must be awareness of the tax rules that affect retirement accounts, such as prohibited transactions and UDFI (Unrelated Debt Financed Income).

@Steve K. really good points.Although the OP may have had a smaller job in mind, most states prohibit a simple Handyman from taking on any project more than $500 anyway,  so the customer is stuck with a GC or doing it as Owner)Builder, which makes them assume all liability and responsibility.This has been a good thread and hopefully has provided valuable info to investors and homeowners.

[Note: There appears to be a defect in the parser for the forum which prohibits one from using the mathematical symbols for "less than" or "greater than" in {HTML} formatted text such as bullet lists. 

@Joe AlfordThe law prohibits age discrimination!

If it's not prohibitive for me to travel I'd be interested in meeting up with this group as well as it's an area I'm looking at getting into.

The PSA prohibited me from picking my own inspection company and perform a 3rd party inspection.