Hard Money Lending with SDIRA Funds.
I met a local Hard Money lender that syndicates 6-12 month Hard Money loans recently. The interest earned, typically 9% to 12%, is paid out to the members and the syndicator keeps the up front points and handles all the paperwork. My concern is, how will this be treated tax wise? Will my SDIRA investment be subject to UBIT or UDFI?