for their SDIRA investments. We have had a positive experience with them so far. Has anyone else dealt with these folks? If so, what was your experience?
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
14y
I have been moving an IRA that I inherited to UDirect. After having spent the last few years dealing with huge frustrations with Equity Trust, this has been an unbelievable change.
When I call, a human picks up the phone, and when I ask for a specific person, that person comes on the line.
I get to stay with the same coordinator through the duration of the account set up and funding, so I don't have to reinvent the wheel every time I call.
When I send them emails with questions or instructions, they answer or execute within 6-12 hours, frequently far less.
When my wired funds showed up in my account from the previous custodian, I received an automated email.
When my DOI was received and executed, I received an automated email.
When I call with my 12th question about a specific procedure, they cheerfully answer. Immediately.
I know this sounds like all businesses should be operating like this, but believe me, Equity Trust is far from this standard. I'm thrilled.
There have been a few minor glitches with paperwork, and I sense that they don't have the depth of experience that ETC has, but so far I'm singing their praises and am very happy. I hope @Kaaren Hall reads this.
SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
15y
I know the president, Kaaren, personally and actually see her at various REI events around Orange County several times a year. But I have yet to actually do any business with her.
Lender · Jupiter, FL · Member since 2011 · 14 posts · 1 vote
15y
In comparing the SDIRAs out there, what is making one company more attractive than the others? There seems to be several that investors are using: Equity Trust, Entrust, Guidant, solo-K, UDirect, etc.
Real Estate Investor · Andover, CT · Member since 2010 · 7 posts · 0 votes
15y
I used SDIRA to purchase a property a few months back.
Everything went smoothly. Just dot the i's and you will not have any problems. Know the rules before you start.
Notes Investor · San Diego, CA · Member since 2012 · 109 posts · 51 votes
14y
I am currently looking for a SDIRA company and did some research and it is down to how much one charge over the other:
- uDirect charge:
The Set-Up Fee is $50
The Annual Fee is $275 (flat-fee regardless of the number of assets)
The Minimum Deposit (not a fee) is $325
The Direction of Investment fee is $35*
The Wire Fee is $15*
*We waive the first 6 transaction fees for the life of the account.
- Equity Trurst:
The Set-Up Fee is $50
The Annual Fee is $600 - regardless how many transactions you do
The wire Fee is $15
So, if you do "volume" - more than 20 transactions per year then you can save some money with Equity Trust.
Notes Investor · San Diego, CA · Member since 2012 · 109 posts · 51 votes
14y
@ Bryan
Have you personally use uDirect? Frankly, I don't care much about the "charge" or yearly maintenance as "we" can make money back and more on our deals - even with one deal per year :)
However, I do care about the service that they provide and my "hard earned" money is safe. But, from what I read on this thread, thus far, no one have use uDriect, yet?
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
14y
I have a solo K so I don't personally use UDirect. However, I have sent a number of clients that invest in our fund over there and many have written glowing emails about the service. I also know Kaaren Hall personally and she has spoken at a number of the events I attend.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
14y
Bac Nguyen - You failed to mention that the annual fees for Equity Trust fluctuate depending on the amount of assets in the account. The more the assets, the higher the annual fee, so your $600 listed fee is not going to be the same for all investors. With that in mind, if you happen to have a large SDIRA, the less expensive may in fact be with Udirect.
I too know Kaaren personally but do not have any accounts with her as I too have a solo 401k plan, not an IRA and my Father's IRA is currently with Equity Trust but will soon roll over to a solok plan like mine.
Notes Investor · San Diego, CA · Member since 2012 · 109 posts · 51 votes
14y
@Will Barnard - I did not know ETC charge you more for annual fee? However, I am not sure why should you charge you more! I am thinking they operate like "bank" - the more money you deposit the less fee you have to pay, etc.
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
14y
Bac Nguyen, I recently had a long conversation with Edwin Kelly, who was until recently the head of Equity University at Equity Trust, and has recently started Horizon Trust. Edwin explained to me that the account activity is what drives the fees in accounts, and that makes sense to me. Someone with a small IRA could be buying multiple small tax liens with lots of transactions and redemptions, and have lots of activity, however typically larger accounts have larger numbers of transactions. Not necessarily so, but usually.
He will be sending me his revised fee schedule shortly, and at that time I will be deciding on which of two I will move my inherited IRA to: Udirect, or Horizon Trust.
Customer service at Equity Trust has been declining steadily. I use a solo k to lend money, and work with multiple investors with their
IRA's and 401k's, and I have grown increasingly frustrated at the terrible customer service at ETC. And the reps seem unconcerned, and even unaware that there is a problem.
Once I've made the switch, I'll update this topic.
Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
14y
I suggest you consider IRA Services for your SDIRA as well, Bac Nguyen. In this case, I actually do use them and find their service great. When I opened my account several years ago, they were hands down the least expensive administrator for my investment style. And, in this case, style matters.
Some administrators charge by the total value of your account, some by the transaction, and some for each item you request (i.e. checks written, wire transfers, notary fee, reconveyance fee, etc.). Others combine these. A few dollars here and there and it can add up to real money. That is, don’t get nickeled and dimed.
For example, if you’re only going to hold gold in your account and not trade actively, then an administrator that charges by the transaction might be your best bet. If you have a small amount of money, then you might want to go with an administrator that charges by the value of your holdings. Writing lots of checks for rentals? Then find an administrator that charges by the deal. Etc., etc.
Years ago I prepared a spreadsheet that compared the charges from many IRA companies and I made my selection based on my anticipated investments. Most everyone publishes their fees online so you might want to do the same in order to personalize your selection. Then perhaps ask about their service here.
Also, for what it’s worth, as my notes get paid off I'm rolling everything into an SD 401k and will eventually close my SDIRA. In this case, I’m the administrator and cut out all fees. A bit off-topic, but well-discussed on this board and perhaps worth considering as too.
Chicago, IL · Member since 2012 · 18 posts · 1 vote
14y
Everyone is correct in their assumption that there is huge variance with SDIRA custodians fee schedules and customer service levels.
I work with all of the major firms and would be happy assist anyone by listening to what you are specifically looking for and give you my suggestion from there.
The trend of self direction is in its infancy. Its going to be very interesting to see how it continues to grow going forward.
Chicago, IL · Member since 2012 · 18 posts · 1 vote
14y
I work with a lot of the major custodians that allow for self-direction with your IRA. I also work with smaller ones.
As there is a variance in their respective strengths and weaknesses, I would need more information to asses a fit between the investor and custodian options. Let me know if you would like to chat about your situation.
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
14y
I have been moving an IRA that I inherited to UDirect. After having spent the last few years dealing with huge frustrations with Equity Trust, this has been an unbelievable change.
When I call, a human picks up the phone, and when I ask for a specific person, that person comes on the line.
I get to stay with the same coordinator through the duration of the account set up and funding, so I don't have to reinvent the wheel every time I call.
When I send them emails with questions or instructions, they answer or execute within 6-12 hours, frequently far less.
When my wired funds showed up in my account from the previous custodian, I received an automated email.
When my DOI was received and executed, I received an automated email.
When I call with my 12th question about a specific procedure, they cheerfully answer. Immediately.
I know this sounds like all businesses should be operating like this, but believe me, Equity Trust is far from this standard. I'm thrilled.
There have been a few minor glitches with paperwork, and I sense that they don't have the depth of experience that ETC has, but so far I'm singing their praises and am very happy. I hope @Kaaren Hall reads this.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
14y
Glad to hear that they're working out and this thread helped Ann. Everyone we have sent over there has been quite happy. Now if I can only convince Kaaren to get more involved in solo Ks I'll send more folks her way ;-)
For active investors I still think the solo K is the best product around and has many advantages over the SDIRA entities. The notable exception is if you have a lot of money stored in a Roth IRA and cannot use it in the solo K vehicle.
Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
14y
I have not done any business with Kaaren but I can say I think very highly of her. She attends more REI meetings than anyone I know and lives and breathes the business of SDIRA's. I'm looking forward to setting something up with her in the near future.