Saint Paul, MN · Member since 2016 · 3 posts · 0 votes
Hello,
I am new to bigger pockets. I recently opened an SDIRA account with IRA services with the intent of investing in crowdfunding real estate sites like Realty Shares and deferring taxes. I now realize that every crowdfunding site has their own favorite IRA custodian (Realty shares list Entrust Group and Millennium Trust). So I now wondering how to know which crowdfunding site accepts IRA services.
And on a larger question, I am also wondering with all the fees for an SDIRA is it even worth doing this vs. just investing in REIT through a regular IRA
While crowdfunds may have a preferred custodian, they should be able to work with any custodian.
IRA Services has the advantage of a flat fee-per-service model, which makes them favorable for you and this type of investing. Many of the other custodians charge based on the asset value of the account.
Fees should not be that significant an impact on your overall return or really that different than investing in REITs via a conventional brokerage. Self-directed fees are typically just more transparent, but not particularly that much higher.
@Andrew DSouza My experience is that the crowdfunding company may have recommended IRA custodians to work with, they should be able to work with any reputable custodian you work with.
@Larry Fried@Brian Eastman - Thanks for the replies. I called up the crowd funding companies and they said I could use any custodian!! So I am planning on going for it
You could invest the IRA in an IRA LLC which can then be invested in crowdfunding. Also, in Minnesota an IRA is not fully protected from creditors so the LLC will help with that too.