So I had an idea this morning, curious if this is legal and/or recommended.Here is my idea:I have an LLC that operates my real estate investment businessI have a self-directed IRA LLC with about $40kMy friend has an LLP/LLC for his orthodontics practiceLet's say that he also has a self-directed IRA LLC with about $40kNow let's further say that my self-directed IRA loans my friend $40K at 15% for 5 years. 

Hi all,I'm reading a book right now and they mentioned possibly getting a loan from a family member and suggested having them utilize their self-directed IRA to loan out the cash.

Can my husband's self-directed IRA loan money to our LLC?

@Ronald ThompsonDefinitely run any equity crowdfunding investment with an IRA past your CPA.If the entity is using leverage, there is tax exposure known as UDFIIf the income via the entity is viewed as trade or business income, and the entity is a pass-through such as a LLC, partnership, etc. then UBIT taxation can apply.Both taxes are documented in IRS publication 598.

I personally would stay away from IRA borrowing period.

@Harold GroetsemaThe taxpayer is your IRA and you should use the EIN of your IRA.  

Has anybody transferred from a traditional IRA firm (Edward Jones, etc) to an reputable Investing IRA, where they will let you invest in rental properties, not just a primary residence? 

This is a great forum with very knowledgeable members that will help to guide you in the right direction, whether that is real estate sales, wholesaling, flipping, rentals, lending, self-directed IRA and Solo 401k investing, or tax and legal guidance.

I've used 12% hard money loans many times.If you have a 401k or an IRA you can borrow up to 50% or $50K (whichever is lower) and that would be your cheapest way to fund the rehab because the interest payments are basically paid to yourself.

Compass bank will write a loan for first time buyers with as little as 3% down, and firstbank will do IRA loans, so I don't see why you couldn't get a loan from someone, I'm just not sure who.