Rolling into Self Directed IRA to lend to flipper/builder

[Christopher Salerno]

Hi, all. I'm a new investor and want to begin lending hard money. I'm really considering rolling over my IRA into a Self Directed IRA in order to work with a trusted partner who wants to build and flip homes in the area. I would be loaning up to 75% LTV on each project and of course have first position on the loans. I also know that he has the money to repay me.

But I'm not sure what to look out for in rolling my money from a traditional IRA into a Self Directed, and also what I should consider with finding a Self Directed IRA Custodian. COULD I set up a TD Account, etc and BE MY OWN CUSTODIAN, and just use an Accountant to prepare the materials I would need to transact and comply with the IRS, etc? Or am I LEGALLY required to have an "official" custodian for the Self Directed IRA? One who is not just a bank?

Thanks, all. 

Chris

[Justin Windham]

Originally posted by @Christopher Salerno:

Thank you both so much! I suppose what I'm asking, too, is whether it's possible to NOT have to go with a Self Directed IRA company at all--to roll the money into something like a TD account, and not have to pay custodial fees as high as one would with a Self Directed IRA Specialist. Does this make sense? That I could sort of act as my own facilitator, if there's a very baseline kind of custodian scenario.

If you are eligible for a Solo 401k, you can have the ability to invest your retirement funds into real estate and other assets without the need for the expense of a custodian. An IRA will always have to have a custodian, however.