Given that we are carrying ALL of the financial risk, I am having a hard time seeing why this would be reasonable or fair.

Ive been involved in real estate since the beginning of this year (2107) and after doing a few wholesale deals we finally found the "perfect flip"... so we thought.

Again, this is not meant to persuade you as to which structure is better for you as other factors are involved, but I thought I would try to clear up what you perceived as ambiguity.Do you plan to invest your IRA LLC in California?

Through research, due diligence and education you will be able to take calculated risks that should generate great returns.  

Which means the lender doing the 20% down payment will have a second, with no equity, and a borrower with no skin in the game (which means a giant risk for them).

The risk is, if you don't give it up and let it go to a foreclosure and they have to pay attorneys with money out of their pockets.2.

Recently, I was fortunate enough to be involved in the ground floor start up of Invitation Homes (INVH) which finally went to the public markets this past February.

Now you run the risk of the bank calling the loan due if they find out about this transaction happening and if you quit claim deed a property off market then you might have problems with the sale of the property and more signatures may be required by the old owner in order to sell and you will assume any liens/encumbrances the old owner has you might miss since you didn't have a title company transfer title.

If so, What are the risk reductions for reaching out to an attorney? 

How is the risk generally distributed?