So I had a national guru suggest this:
Find the deal, put up $100 from my self-directed IRA to fund it.
JV with another investor who puts up the balance of the cash.
This would be a long term (1 year plus) hold.
Split the profits with the other "partner" 50/50.
So my IRA puts up a fraction of the cost, the other party puts up the majority.
But all profits are split 50/50. (equity split)
Does this violate any of the IRS "rules" on self directed IRAs?
not enough details to answer with certainty but probably it would violate the rules. Your IRA can partner with someone else (who is not a "disqualified person") on the investment but the equity split should be the same as contribution. So the fact that it is uneven split suggests that you providing personal services to the IRA by finding and negotiating the deal and will stand the test of the IRS prohibited transaction rules.
That would not necessarily violate the prohibited transaction rules, but it would certainly result in violating the contribution rules. The argument is that your IRA is over benefiting from an investment that it did not proportionally make.