If they cannot, they are not sophisticated enough to handle your IRA dollars.REITs are actually used to block UBTI or UDFI  income for the exempt taxpayers.

The property must be owned by the seller and serve as security for the financing.The person has not constructed, or acted as construction contractor for, a residence on the property in the ordinary course of business of the person.

If so then it is considered to be the tax payer for IRS purposes.  

Your net Flip profit less overhead is subject to ordinary income tax rates  15% - 33% Federal Taxes, plus FICA 15.30%, plus State and local tax rates.       

Plus, are you really saying that rather than having crappy options that people can afford ON THEIR OWN we should turn them all into nicer places, with higher rents, and then let the government (us, tax payers) pay instead? 

What if annual tax payments were made to keep it from going back to auction?

Many agents don't understand the idea of wholesaling, and they're likely to tell the sellers to avoid your offer because it might seem out of the ordinary and they may be skeptical you'll actually close.

The IRS requires that the same taxpayer who sold the relinquished property must purchase the replacement property.

., ordinary tax or capital gains? 

So also if it has not been a problem before or yet, something for white noise for the tenant so they are not bothered by the other tenants may also be a good solution, assuming the other tenants also are not making noise out the ordinary.