Recommendation for Checkbook IRA?

12 Replies

Good morning everyone!  I have been on BiggerPockets for about a year but too nervous to post anything due to lack of knowledge in real estate.  Today, I am doing it.... 

I have a few 401k accounts from my previous employers and would like to move them into a Checkbook IRA. I did some research on BiggerPockets but most of the posts are old (3-5 yrs) so I am not sure if the information is still relevant.

My questions are: 

Does anyone has any recommendation on checkbook IRA? Accuplan, BroadFinancial, or any others?

Anyone has any success buy and hold real estate with a checkbook IRA?

Thank you for your help and time!

Long, congratulations on breaking the ice and making your first post!

Checkbook IRA can be very powerful tool when it comes to alternative investing (real estate, private lending, tax liens, syndication, private placements, hard money lending, etc). Many of my clients successfully investing, the story of one just came to mind, hopefully it will inspire you and help you make the next move:  

https://www.nerdwallet.com/blog/investing/self-dir...

@Long Lam @Dmitriy Fomichenko has a great platform for learning more.  Also, I have several investors that use checkbook and several that use custodian (so they don't screw it up!).  Keep getting educated and you'll figure it out.

@Dmitriy Fomichenko Thank you for the link. Can I still get a mortgage for the rental property in my checkbook ira? If I can get a mortgage, is it much harder to get one with an LLC since I can not use any personal guarantees for the loan.

@Long Lam

An IRA must obtain a non-recourse mortgage, meaning no personal guarantee from you. There are a handful of lenders such as North American Savings Bank and First Western Federal that specialize in such loans. They typically want a higher down payment due to the loan being non-recourse, and are somewhat conservative in terms of type, age and quality of properties, but the capital is surely out there and available for the right deals.

Long, as Brian mentioned the loan can be obtained but it must be non-recourse. You don't personally have to qualify for this loan since you are not providing personal guarantee but rather the property must qualify. If you are buying decent property and the value is there such loans are relatively easy to obtain. Over the years I assembled the list of lenders who offer such financing, hope you will find it helpful:

https://www.biggerpockets.com/blogs/2810/50272-lis...

@Long Lam

While the checkbook IRA is a good option, it is not necessary from a creditor protection perspective since IRAs are already afforded full creditor protection in the state of Texas.

[Tex. Prop. Code Sec. 42.0021

However, if you are trying to place investments more quickly, then IRA LLC may make sense.

I know many people who've had success with a checkbook IRA. You just can't be too active in it, so I'd suggest considering hiring a property manager for your buy and holds.

John Park of PGI is very familiar with Checkbook IRA accounts and may be able to help you out:

http://www.pgiselfdirected.com/author/admin/

@Long Lam I set up mine last year through Jeff Nabers with the Nabers Group out of Colorado.  They were very helpful.

I just got mine set up thanks to @Brian Eastman

I also had funds from miscellaneous old 401ks I rolled into the SDIRA. Depending on the 401k company, it was either super easy or a big PITA to get the funds moved.

I talked to a few different companies and went with safeguard. PM me if you’d like any more detail.

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