I would recommend Quest IRA...http://www.QuestIRA.com
Hands down they have the best customer service and staff in the industry! You won't be disappointed. If you want an introduction, drop me an email and I'll have them give you a call.
@Rick Johnson Thank you for the list. It's kind of long haha. If we talk about stock here. I would use Robinhood for regular stock trade because it's $0 commission and $0 fixed cost for each buy and sell of stock. I would use TD Ameritrade / Charles Schwab for pennies stock because Robinhood does not support OTC penny stock trading and TD Ameritrade and Charles Schwab are the lowest cost for buy and sell stock. What is the equivalent of that for SD Roth IRA service company?
@Scott Carson Thanks for your recommendation. Cost is my number 1 concern and service is second. I still have 34/35 years to go if I assume I will retire at age 65 (which I hope not), so it has to make financing sense for me. Have you shop around before you make the decision for Quest IRA or it's because that company locates in Houston (I just did some research), which is the closest available to you? There are some negative feedback in yelp and I am concerned.
@Kin Lay I think you need to switch your priorities. Quest is not the cheapest, but they are the easiest and fastest to work with...I've had deals that were supposed to close with the cheapest custodians that took 2 weeks to get done that Quest got done in 48 hours or faster. That ended up costing me a lot more than a monthly fee.
Yes, Quest does NOT offer Checkbook control...I do not recommend that as they do a great job covering you *** with the paperwork on deals...
In my business, its all about being able to close in a timely fashion...Is it worth losing a deals source or deal because you are trying to save $50 bucks? Its called stepping over dollars to save pennies...
Or having to pay 2 weeks of fees on a loan that I can't refinance out?
The IRA LLC may be a good idea if you are looking to reduce IRA custodian involvement since the investments will be made through the LLC not the IRA. However, in CA the annual state fee for an LLC is $800, and this is in addition to RA custodian fees.
Kin I would agree with Scott. I opened up a solo401k initially with the check book etc. But my custodian did not understand real estate and what my goals were. Since then I have closed the Solo401k with checkbook control and opened up an account with Quest. Before going with Quest I had talked with at least 3 other companies. Quest by far has exceeded my expectations and they understand real estate investors because they are investors. Quest is always having promotions, and their training (via FB live, on their web page, plus live training events across the country) I don't think is matched by anyone else.
I've used a few and I like Advanta. They allow checkbook IRAs, they answer the phone and return phone calls. You can speak to a real person including their attorneys who specialize in self-directed retirement accounts and their fees are reasonable.
@Kin Lay what kind of deals are you doing right now that you will be doing in your retirement account??
Have you done some rehab deals?? Landlord?? Lent money to others?? Bought notes?? Wholesaled a property or two?? Those are the kind of things that your ira will be buying. It is a bunch more involved than buying some stocks. Lots more research goes into making a real estate decision. It really depends on what you are going to do and how much you will be doing it. If you dont do much with your account, it will cost you money. If your account is active, you will be so happy to pay those fees to make sure paperwork is done right and know that you always have someone there to get an answer from.
I would put my vote for Quest also. I have several friends who lend money to me for rehabs. Communication is key for members. I have never been delayed in a closing. I have been delayed on every deal with Equity Trust Co. Since one of my friends has the money there, it is out of my control to use them. Several of her friends have, I think, convinced her to move to Quest (I pray).
@Kin Lay There are custodians that offer self-directed IRA accounts with and without checkbook-control. Checkbook-control using an IRA-LLC would minimize the involvement of the custodian, keeping fees down and giving you complete control over the assets.
The freedom of checkbook control does require you to be more aware of some tax rules that affect IRAs.
@Randy Craven When utilizing a Solo 401(k) with checkbook-control you would be the plan trustee and the plan assets could held in a bank account from which you could invest without the involvement of a custodian. Qualified Plans, such as 401(k)s and profit-sharing plans don't need a qualified custodian (unlike an IRA, which requires a custodian and for which an LLC is used to achieve checkbook-control).
Equity Trust is the worst in the industry....My vote is with Quest and if you call them today and tell them that I sent you, they'll wave the new account setup fee.
Thank you everyone input. It seems like Quest wins by majority vote.
@Rick Pozos I have not purchase anything yet. In fact, I just put $5,500 into Roth IRA recently. I will have $20,000 in my 401K account by the end of this year. I don't have a side business or a proposal for one. How would you approach if you are me? Should I just use that 5,500 to invest in ETF or Vanguard 500? Then next year when it becomes $11,000+, set up a SD Roth IRA for tax lien? As for the current moment, use the cash that is not in the 401K or IRA to invest in tax lien?
If you are marketing to find deals, you could use your sdira to get something under contract for $1000. Earnest money. You could then wholesale the deal and all the money would go back to the sdira. You can easily turn $5,500 into 20K in a couple of years by doing several wholesale deals. You could lend the money to other investors or you can buy some non-performing notes and get them performing again.
Quest is on facebook and has some good live classes on different days and at different times that explain wholesale deals, notes and lending.
I'm looking into the possibility of rolling a couple 403 (b) accounts into a self directed IRA. My initial plans would be to make cash RE purchases, doing some renovation, and then selling. From what I have seen, it seems a custodian makes payments and receives sale proceeds. Is that correct? How would payment for renovation expenses be made? Any other valuable info? Thanks.
@Eric James Payment for renovation expenses would have to come from your IRA, and not from personal funds. The process could be streamlined by obtaining checkbook control of the IRA funds. Checkbook-control enables you to have your IRA funds in a bank checking out from which you could conduct business as usual, without the involvement of a custodian at each point.
Another factor to consider is UBIT - Unrelated Business Income Tax. If an IRA acquires real-estate with the intent to sell, the subsequent sale could be taxable.
Thanks @Bernard Reisz
I like the idea of a custodian having control, but I may want to purchase tax sale properties, which might require 'check book control' to facilitate quick payments. Does having check book control require formation of an LLC? Also, is there a prohibition against purchasing tax foreclosure properties with a self directed IRA?
@Eric James Checkbook control using an IRA is generally achieved through an LLC. Other entities can be used, but a single-member LLC is the most straightforward approach.
If checkbook control is achieved through a Solo 401k, no additional entity is required (but can used if desired for asset protection or other reasons).
You can purchase tax foreclosures properties with a self-directed IRA. The usual tax considerations apply (e.g., prohibited transactions, UBIT).