Is This Prohibited Transaction for IRA?

[Andrew Yu]

I'm wholesaling a subject-to property. The Buyer will needs 10K to close, wanting me to lend him the money thru my IRA. Can I do this? Is this gonna be prohibited transaction?

[Bill B.]

Sounds like you are personally benefitting from the loan. Doesn’t sound good  

Ps. How much do you lose if they never make a payment and have to be evicted if they have zero in to the deal?

Tell him to take it out of your wholesaling fee. Then he can make payments on the fee.