Looking for a good Self Directed IRA Company
Hey BP Community!
I am planning on moving my prior company's 401k to a self directed IRA so I can take advantage of borrowing money against it to buy more Real Estate.
Anyone have a great company they'd recommend to hold this SDIRA account with?
Many thanks!
I like Equity Trust
Hey Kenny you mentioned you wanted to roll your prior company 401k to a self directed IRA which is fine. I did the same thing. I rolled mine however to a Roth IRA and paid the taxes since I knew it would grow tax free for the rest of my life.
You mentioned you wanted to borrower against the SDIRA you setup but you cannot borrower money from an IRA like you can from a 401K. So I wanted to let you know. You can lend money from your IRA and or you can use the money to buy real estate and maybe that is what you meant.
I have used Equity Trust for years. There are many good ones but each has a different fee structure. If you do alot of transactions then ETC is pretty good since they charge a flat fee per year and you can do one transaction or 100 and same amount. They also have a good online bill pay for bills associated with your assets. There may be other better choices if not doing many transactions per year. Search for the book on Amazon called IRA & 401K Income Builder which is good reference guide.
Quote from @Randy Rodenhouse:
Hey Kenny you mentioned you wanted to roll your prior company 401k to a self directed IRA which is fine. I did the same thing. I rolled mine however to a Roth IRA and paid the taxes since I knew it would grow tax free for the rest of my life.
You mentioned you wanted to borrower against the SDIRA you setup but you cannot borrower money from an IRA like you can from a 401K. So I wanted to let you know. You can lend money from your IRA and or you can use the money to buy real estate and maybe that is what you meant.
I have used Equity Trust for years. There are many good ones but each has a different fee structure. If you do alot of transactions then ETC is pretty good since they charge a flat fee per year and you can do one transaction or 100 and same amount. They also have a good online bill pay for bills associated with your assets. There may be other better choices if not doing many transactions per year. Search for the book on Amazon called IRA & 401K Income Builder which is good reference guide.
Thanks Randy. So to clarify, I would be taking money out of the 401k or SDIRA and would be buying more real estate myself. But I want to do that without any fees taken out..not sure if that is possible.
I am told the 401k plan I have now does not allow for that..that is why I want to roll it into an SDIRA, because from my understanding, you can use that money to buy real estate without penalties.
Quote from @Randy Rodenhouse:
Hey Kenny you mentioned you wanted to roll your prior company 401k to a self directed IRA which is fine. I did the same thing. I rolled mine however to a Roth IRA and paid the taxes since I knew it would grow tax free for the rest of my life.
You mentioned you wanted to borrower against the SDIRA you setup but you cannot borrower money from an IRA like you can from a 401K. So I wanted to let you know. You can lend money from your IRA and or you can use the money to buy real estate and maybe that is what you meant.
I have used Equity Trust for years. There are many good ones but each has a different fee structure. If you do alot of transactions then ETC is pretty good since they charge a flat fee per year and you can do one transaction or 100 and same amount. They also have a good online bill pay for bills associated with your assets. There may be other better choices if not doing many transactions per year. Search for the book on Amazon called IRA & 401K Income Builder which is good reference guide.
Hi, great advice!
Are there limitations on lending?
1) For example, one can not lend to his relatives, etc...
2) Can one lend to their own LLC?
3) And what is the max amount one can lend?
4) Also, what is their website?
https://www.trustetc.com/lp/re...
This one?
Don't want to send the money to some scammers, so would be super grateful if you could confirm the website :-)
#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
- 5,244
- Votes |
- 4,686
- Posts
#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
Yes there're limitations, and they are not specific to lending. You cannot do what is known as "prohibited transactions" which includes any dealing (including lending) with yourself, with the companies you control and with certain close relatives.
Google "prohibited transactions in SDIRA", and you will find dozens of articles of various quality. Some real good ones, some trash. You can also search BiggerPockets on this topic, it is very often discussed.
I recommend you reach out to one of our many resident experts who operate SDIRA companies and, like Equity Trust, can serve as your custodians: @Dmitriy Fomichenko, @Bernard Reisz, @Brian Eastman
Quote from @Kenny Smith:A 401k at a typical company does do allow u to invest in real estate. However, you can either roll it to a SDIRA ( to a custodian account like Equity Trust) or you can form a Solo 401k that specifically allows real estate transactions (this is usually setup by a SEC attorney and does cost around $1500 to setup). In order to do this you have to be self employed and no employees. Check out book called IRA 401k Income Builder as a reference which is all about self directed investing in real estate, etc.
Quote from @Randy Rodenhouse:
Hey Kenny you mentioned you wanted to roll your prior company 401k to a self directed IRA which is fine. I did the same thing. I rolled mine however to a Roth IRA and paid the taxes since I knew it would grow tax free for the rest of my life.
You mentioned you wanted to borrower against the SDIRA you setup but you cannot borrower money from an IRA like you can from a 401K. So I wanted to let you know. You can lend money from your IRA and or you can use the money to buy real estate and maybe that is what you meant.
I have used Equity Trust for years. There are many good ones but each has a different fee structure. If you do alot of transactions then ETC is pretty good since they charge a flat fee per year and you can do one transaction or 100 and same amount. They also have a good online bill pay for bills associated with your assets. There may be other better choices if not doing many transactions per year. Search for the book on Amazon called IRA & 401K Income Builder which is good reference guide.
Thanks Randy. So to clarify, I would be taking money out of the 401k or SDIRA and would be buying more real estate myself. But I want to do that without any fees taken out..not sure if that is possible.
I am told the 401k plan I have now does not allow for that..that is why I want to roll it into an SDIRA, because from my understanding, you can use that money to buy real estate without penalties.
Quote from @Michael Plaks:
Yes there're limitations, and they are not specific to lending. You cannot do what is known as "prohibited transactions" which includes any dealing (including lending) with yourself, with the companies you control and with certain close relatives.
Google "prohibited transactions in SDIRA", and you will find dozens of articles of various quality. Some real good ones, some trash. You can also search BiggerPockets on this topic, it is very often discussed.
I recommend you reach out to one of our many resident experts who operate SDIRA companies and, like Equity Trust, can serve as your custodians: @Dmitriy Fomichenko, @Bernard Reisz, @Brian Eastman
Thank you sir!
#1 All Forums Contributor
- Investor
- Virginia
@Kenny Smith
If you want to invest in real estate I would go quest, madison trust or advanta
We are a sponsor and have worked with all of them, and to be blunt some of them are the worst at processing paperwork and getting the investment funded in time
We have had some investors lose out because their custodian couldn’t get paperwork done in time (we are talking it took a month).
We are looking at SDIRA companies too. Does having checkbook control via an LLC assist in speeding up the process? (by having the investment made through the LLC versus directly through the SDIRA company)
Thanks!
#1 New Member Introductions Contributor
- Solo 401k Expert
- Anaheim Hills, CA
- 6,065
- Votes |
- 17,647
- Posts
#1 New Member Introductions Contributor
- Solo 401k Expert
- Anaheim Hills, CA
Yes, with custodial IRA you need custodial content, then wait for them to advance the funds. With IRA LLL it can be done as quickly as writing a check.
- Sense Financial Services LLC
- (949) 228-9393
- https://www.sensefinancial.com
I borrow from a bunch of friends and family. I always recommend Quest Trust Co. They have a website with TONS of information, YouTube videos, and weekly information interviews.
Quest can usually get an account set up and fund deals pretty quick. The problem is usually getting the money from the 401k company to actually release the funds. Plus the people, staff, operators are very knowledgeable and friendly. THAT is a super duper major plus. The company is headquartered in Houston, Texas. When you call no one is transferred to another country.
I rolled over to IRA club, and purchased my first investment property using them. Everything was quick, seamless, and fees were very low when I compared to others. So far no problems.
@Brenda West, which company did you use to roll over?
I'm definitely following this. We partner with IRA investors all the time that roll $ out of old 401Ks into a SDIRA for the first time and don't know where to go. We've been referring people to Advanta and they have been happy, but it would be nice to know about other custodians that area based in other areas of the country. That would open up our investor pool a bit. Following.
Just spoke with the IRA Club based on the recommendations here. I will be going with them as well.
Hi there
This forum is awesome
I am hoping to roll over money from my traditional IRA to a SDIRA custodian, Not for real estate but for pre-IPO biomed company that I am following. Any suggestions for SDIRA custodians? Fees appear similar - probably investment will be in the 50k-75k range.
Thanks for any responses
@Irfan Nasir There are many factors to consider when selecting a company to set up SDIRA. First off, know that a custodian is required for any and all IRA's, however some company's can set up an IRA LLC/Trust to avoid the delays and fees associated with having to go through the custodian for each investment/payment etc. The LLC/Trust is owned by the IRA and gives you as the manager/trustee what's called checkbook control. Do your homework and make the decision you feel is best for you.