Investor · Bolingbrook, IL · Member since 2011 · 11 posts · 1 vote
Hello Fellow Investors,
I am interested in utilizing a Self Directed IRA to invest in flip. An associate is purchasing the property in her name and I would simply like to invest in this single project.
Will someone please assist me by recommending a custodian company within the greater Chicago-land area?
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
10y
Geography is not important in selecting a SDIRA Custodian. My custodian is in Ohio and I invest in NC. Just read on BP about custodians and select the one that best fits your needs.
Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
10y
For a custodian, location is entirely irrelevant. When you set up the IRA originally did you make sure it was a local company? ;) Just make sure that they can support what you are planning on doing. I find that the IRA LLC makes the most sense, and some custodians are okay with them. At that point you have "checkbook control" and it doesn't matter where your custodian is, what matters is the fees you have to pay them.
For a custodian, location is entirely irrelevant. When you set up the IRA originally did you make sure it was a local company? ;) Just make sure that they can support what you are planning on doing. I find that the IRA LLC makes the most sense, and some custodians are okay with them. At that point you have "checkbook control" and it doesn't matter where your custodian is, what matters is the fees you have to pay them.
Investor · Bolingbrook, IL · Member since 2011 · 11 posts · 1 vote
10y
@ChrisMartin Thank you for your prompt response. How do I find recommendations on BP for specific SDIRA custodians? Also do you happen to know any attorneys which are adept at advising on SDIRAs?
Investor · Bolingbrook, IL · Member since 2011 · 11 posts · 1 vote
10y
@MatthewPutnick I will call Midland IRA Inc. on Monday. Thank you for the recommendation. I greatly appreciate it. Although I have done real estate deals in the past I have never done a deal utilizing a SDIRA.
Investor · Bolingbrook, IL · Member since 2011 · 11 posts · 1 vote
10y
@Bryan Otteson Thank you for the advice. Do you mind expounding on the IRA LLC and check book control? What specifically do you mean by IRA LLC? Do you believe that by creating a LLC and channeling my investments through this LLC I will have the most flexibility? Any additional advice you can provide will be greatly appreciated.
Investor · Bolingbrook, IL · Member since 2011 · 11 posts · 1 vote
10y
@Justin Windham
Thank you for the confirmation. This will be my first SDIRA project. I can's afford to make a mistake. Are there any custodian companies or lawyers you would recommend?
Investor · Bolingbrook, IL · Member since 2011 · 11 posts · 1 vote
10y
@Mark Nolan,
Thank you for the suggestions. I reached out to Millenium Trust. However, they have an approval process which requires that I apply for the use of my SDIRA before they will relinquish my funds to me. And they will not inform me of the criteria they use to approve the release of funds for SDIRA real estate projects. Is this common?
The Millenium Trust representative also shared with me that in the event that my project is not approved, they will not inform me as to why it did not pass their review. Any insight you could provide would be greatly appreciated.
For a single promissory note such as lending to a flipper, you do not require checkbook control - and the extra cost and complexity that brings to the table. Such tools are useful for a more complex or transaction intensive portfolio, and if you find you need such down the road, you can upgrade.
Kingdom Trust Co in Kentucky is a quality custodian with reasonable fees and good support. They cannot provide tax advice, but will likely be much more helpful than what you encountered with Millennium.
Investor/Syndicator · North Aurora, IL · Member since 2013 · 167 posts · 70 votes
10y
@Jason Williamson both @Mark Nolan and @Justin Windham@Brian Eastman are principles in the very firms that you are looking for. While they are not all in Chicago, in this day and age you do not need them to be. They, are all active here and if you visit their websites you can garner an education on the subject that is worth 100x what you will pay for it (free). In addition, prices are all over the place in this market so research reputation, it is your friend. But I can attest that they are all very helpfull and forthcoming with advise here on B.P.
Investor · Bolingbrook, IL · Member since 2011 · 11 posts · 1 vote
10y
@ Jim Biggs
Thank you very much for the information provided. I am very excited at the prospect of utilizing my savings via an SDIRA. I can't wait! Again, your personal confirmation definitely helps.
Investor · Alexandria, VA · Member since 2014 · 11 posts · 2 votes
10y
Location does not matter. Lawyer is not really necessary either when selecting a trust company! I have Equity Trust and they have many investment options including loan to myself!!!