From what I have been reading about HML it sounds like after a few transactions, lenders may be willing to offer a lower interest rate after I've had the opportunity to build a relationship/track record with them.

Any suggestions you might have of getting the first transaction of the ground?

With a self-directed IRA, you must have a custodian (as with any IRA) and most custodians will charge a setup or application fee with fees for transactions and/or asset-based fees being common too.

If you are investing from your IRA, I'm not sure you can manage it as well; that might be a prohibited transaction.

Because my goal is to complete transactions, not do anything shady or around the law. 

What about using transactional funding?

This way you don't inadvertently do a prohibited transaction.  

It would be nice if we could wait until the contract with century 21 expires and then just do the transaction and save the 6% commission but I don't want to wait an extra month if there is some other loophole in the contract that says we will still have to pay her a 6% commission even though the contract has expired (because I inquired about the house while the contract was still valid or something like that) .  3% would be OK but since she has not even scheduled one showing and has been evasive regarding some of the questions I have asked her regarding the house etc., 6% seems a bit excessive.Thank you for any insights regarding real estate transactions in Alabama.

I could talk about good debt and bad debt, but If the person is willing to take on debt in the first payment of the transaction, what else are they willing to do?

But this will depend on how motivated the seller is, which by the way is my first criteria when doing any real estate transaction.