Early last year, one of our borrowers, an extremely experienced rehabber who had recently been diagnosed with diabetes, informed us that he’d been in and out of the hospital so frequently that he wouldn’t be able to complete the flip we had loaned on as first position lenders.We were aware that he had borrowed an additional $110k from a second-position lender.

Quote from @Nick Am: @Michael Plaks--> The SE taxes are STRICTLY NOT in addition. 

We also allow users to amend a post at any time with additional information by replying to that post again, just like what happened here.We have no plans to change how the forums work as it pertains to the deletion of posts. 

Are there any additional considerations?

Additionally, confirm the transfer won’t lead to property reassessment, which could increase taxes.

Keep in mind that strict rules apply, such as avoiding self-dealing, prohibited transactions, and personally benefiting from the property.If you’re not looking to involve your IRA directly in the property purchase, you could explore other creative financing strategies outside of your retirement account.

My interests lie in all areas of real estate, and I am eager to explore potential opportunities and gain insights into effective strategies.

Most on the other hand are not responsible individuals, are not educated, do not work  which means they are going to be spending most of their time home causing additional wear and tear.

Additionally, please share if this was a scam or not.

@Edgar Duarte Selling now under the primary residence exclusion avoids capital gains taxes, allowing you to reinvest the $500K equity in diversified assets like index funds or additional rental properties.