Who would you recommend for setting up a Self-Directed IRA?

Question

Hi all,

I am looking to get started in flipping properties and purchasing rentals.  Do you have a recommendation on who I can contact about setting up a Self-Directed IRA and Self-Directed IRA LLC?  I am in Louisville, Kentucky area.

thanks,

Marc M. · Answer

I second @Percy N.'s recommendation of Kingdom Trust. They have very low fees, especially if you do a SDIRA LLC. I started mine last fall and it's running great. I had Jordan Sheppherd of Checkbook IRA LLC set me up. They're a small family-run trio of advisors and I thought the service was great (and very affordable). I highly recommend going with a SDIRA LLC rather than equity trust....it makes life so much easier than having to deal with your custodian every time you need to make a move. Good luck @Michael Mateja!

Mark Nolan · Answer

@Michael Mateja

If you are looking to flip properties inside a 401k, it may be best to look into the ROBS 401k instead because UBIT applies when flipping real estate inside a solo 401k plan or IRA.

David D'Errico · Answer

Brent Martin from Primerica. Local investor as well  (502) 851-7835

Shawn Couch · Answer

IMO I would stay away from Equity Trust.  There fees are seemingly reasonable from an annual fee standpoint, but you CANNOT get any timely response or paperwork out of them unless you pay for expedited processing.  Calling them takes a lot of patience.  Online Chat just sits there and repeates a message that you need to wait 2 minutes.  This notice can repeat for hours.  They don't respond to an email question for 1 or 2 days.  Overall, the service is just outright terrible.  An SD IRA is a good mechanism, but it really an antiquated system that Equity Trust uses.  They make you feel like you are in the stone ages.

I'm switching to a solo 401K, but I can do this because I am truly self employed.  There are also "checkbook controlled" IRA set up as well.  I would consider the start up costs for this type of account, even though it's less to set up a standard SD IRA.  After about 2 or 3 years, you will be saving on the annual fees with checkbook control types of accounts (usually a Trust or LLC).

Final note on Equity Trust.  I just got off the phone as I wanted to ask about expediting closing my account and they say they do not offer that as an expedited service.  Quote turn around is 4 business WEEKS to close my account.  This will likely mean that they will charge me another annual fee on Jan 1, 2016 and may screw up my taxes as well.

If anyone has had terrible service from Equity Trust, please contact me to talk about retribution from them.  They are clearly not looking out for their (former) client's best interest and are using our money in some other manner.

Good luck investing.

Bryan Drury · Answer

@Michael Mateja,I recently worked with Dmitry Fomichenko at Sense Financial Services on setting up my Solo 401K .They were very professional,punctual, and easy to work with.Dmitry is a member of BiggerPockets and posts regularly.Check them out.I would highly recommend them.    Bryan Drury

Erik Hitzelberger · Answer

I highly recommend Equity Trust.  I've been using them for several years.  The setup process is very simple.  Occasionally, the service is less than stellar, but it's not bad.  Just takes a little patience.  (It's easier if you are a Gold Member).  The most important thing is that they are very knowledgeable and will keep you out of trouble.  The penalties for not handling your SDIRA transactions properly are really steep.  You want the best custodians possible.

Doreen Chaisson · Answer

Always ask any prospective SD IRA custodian about their reputation and regulatory history. How long in business, are they both administrator and custodian, how many alternative assets under custody, are alternative assets their sole focus, are they BBB rated AND accredited, have they ever been sanctioned by any regulatory body are all very important things to know.

Linda Weygant · Answer

Equity Trust is a nightmare to deal with.  Inexpensive, yes.  But I'd pay more elsewhere to get better service.

Justin Windham · Answer

Sorry to hear about your problems with Equity Trust, Shawn. I'm sure you'll be much happier with a checkbook Solo 401k.

Justin Windham · Answer

@Michael Mateja

Welcome to BP. There are several providers who post on BP that can help you out with a self directed IRA. If you are eligible for a Solo 401k, you may want to check that out as a possible alternative.

Who would you recommend for setting up a Self-Directed IRA?

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