Fast forward  a few weeks and I request my first draw for the rehab money. 

I line is a revolving line of credit you can keep drawing upon.

It will "mature" into a 20 year fixed rate mortgage that you can no longer draw on.

No personal guarantee from you is allowed.The cash generated from the refinance is now available to the IRA to make an additional investment.You are not refinancing nor can you draw out any of the capital personally. 

Hire a lawyer to draw a iron clad agreement.

Often the big name that draws you in is not actually the one doing the teaching. 

I am getting myself ready to buy 2 foreclosures early next year and I wanted to see what recommendations ya'll have for me on this subject I know I can make money on them in the area I will be buying but what draw backs are there ?

What's drawing you to this property? 

The guys I am interviewing/interviewing with now do have a few strengths, even if they would prefer to take a 100% loan: they do good work, they use licensed people, they have a trusted Realtor, they know their area, they have good references, they have lines of credit, and they do the demo/rough in up to about $20k before they request the first draw.

This is going to come up and it's important I outline it, so here's my why/goals.Put simply, I'm an entrepreneur, everything in my personality draws me to being my own boss and taking risks and playing the business game.