self directed 401k programs chattanooga tn

12 Replies

@KANE WHITESIDE

The setup and support of Self Directed Solo 401k programs is a pretty specialty service, with a handful of reputable providers.  I am not aware of any established firms in Tennessee that offer these services.

Geography is generally pretty low on the list of criteria when selecting a provider.  You should seek recommendations on a quality firm with expertise in the field and a track record of providing excellent support for the plan beyond just the initial setup.

@Oscar Zendejas , thanks for the shout out! 

Kane, we have clients in all 50 states and few who are out of country so the location is not that important as Brian mentioned. I offer free consultation and discounted fee to all BP members so please feel free to reach out to schedule your complimentary consultation so that I can learn more about your needs and provide you with some education about self-directed retirement accounts.

Hey guys thank you for the rapid responses. To answer your question MR Worland Currently I have a conventional 401k plan I m wanting to Roll over into a self directed 401k for purchasing some rental properties. Thank you Dmitriy Fomichenko I will contact you soon to discuss further in detail my goals and some options. Ideally I was hoping someone local would be available to set down face to face its my first time doing this and am just trying to be as cautious as I can thank you all for your help.

Originally posted by @KANE WHITESIDE :

Hey guys thank you for the rapid responses. To answer your question MR Worland Currently I have a conventional 401k plan I m wanting to Roll over into a self directed 401k for purchasing some rental properties. Thank you Dmitriy Fomichenko I will contact you soon to discuss further in detail my goals and some options. Ideally I was hoping someone local would be available to set down face to face its my first time doing this and am just trying to be as cautious as I can thank you all for your help.

Kane, the technology would allow us to do a 'face-to-face' even being thousands of miles apart by using google hangouts or Skype (if you prefer that over a phone call) :-)

We can certainly arrange that!   

I second what everyone else has said here... it doesn't make much difference where the custodian is located. If you are wanting to talk with folks in Chattanooga who can help find places and ways to invest the funds, there are several people who would be happy to chat with you. There is also a local REIA that might be of some use. If you would like more information just shoot me a colleague request and we can go from there.

Good luck!

You should also be aware that there are two methods to use your 401K money in real estate investing. One is to place the money with a self-directed custodian, like an IRA. You then direct the custodian to make investments. There are custodian fees and transactions fees.

The second is to set up a 401K trust plan, sometimes called a Solo 401K Trust or an Owner's 401K Trust plan. Here you set up a trust and open a bank account in the trust's name, then move your money to that bank account. There is a plan creation fee up front, but there is no custodian, no custodian fees and no transaction fees to make investments.

Make sure you do your research into costs of these different ways. Almost always the trust route is less costly, more efficient and quicker to get stuff done. 

I consult regularly with my clients on the use of the 401K and IRA funds in real estate. Always happy to chat with an investor.

Happy investing,

Jeff

Originally posted by @Jeffrey S. Breglio :

You should also be aware that there are two methods to use your 401K money in real estate investing. One is to place the money with a self-directed custodian, like an IRA. You then direct the custodian to make investments. There are custodian fees and transactions fees.

The second is to set up a 401K trust plan, sometimes called a Solo 401K Trust or an Owner's 401K Trust plan. Here you set up a trust and open a bank account in the trust's name, then move your money to that bank account. There is a plan creation fee up front, but there is no custodian, no custodian fees and no transaction fees to make investments.

Make sure you do your research into costs of these different ways. Almost always the trust route is less costly, more efficient and quicker to get stuff done. 

I consult regularly with my clients on the use of the 401K and IRA funds in real estate. Always happy to chat with an investor.

Happy investing,

Jeff

I may be reaching out to you soon Jeffrey!  Thanks for your input!

I agree with what others have said regarding location of the service provider being pretty low on the list of important factors in your decision.

Also, I believe wholeheartedly in the individual having checkbook control of their own funds rather than paying someone else to hold their money for them as long as they are willing to learn the prohibited transactions rules and/or get qualified help when needed.

@KANE WHITESIDE

@Thomas P.