Ashland, OR · Member since 2015 · 6 posts · 3 votes
Our Self Directed IRA Custodian is both horrible and horribly expensive. We want to change custodians, but the title to the property would have to be changed - it's currently held by "crappycustodian, FBO MyIRA". My local title co doesn't know any specifics here, so how does this happen?
I am sorry the custodian you are working with is not performing for you.
A transfer between custodians can be done with an asset in-kind. The request will be initiated from the receiving custodian and will require an assignment of the deed from ABC custodian FBO your IRA to XYZ custodian FBO your IRA. Make sure you work closely with the receiving custodian and understand the process. Don't just go out and start getting a new deed on your own.
The real problem is likely that no custodian is very good at handling the level of interaction and time sensitivity that comes with a direct investment in real estate. They all market the services, but they are much better at dealing with more static assets like funds. Even a custodian with better customer service will still likely leave you frustrated.
You should evaluate a plan that offers checkbook control so the custodian's role is limited and you will have much more direct control over your investment transactions. Not all providers will be able to (or willing to) deal with the fact that you have an asset in-kind to move - that can be a good bit of extra headache. That said, the work will likely be worth it in terms of a much better program that will also probably cost you less year over year than the processing services of a 3rd party custodian.