Self-directed IRA for "dummies"

[Kathleen Marie]

I can't believe that I'm 60 and have just discovered Self-directed IRAs! My husband and I are now very excited about the idea of buying 1-2 houses in our neighborhood. We're not interested in flipping. We’re more likely to hold the property forever just to keep as rentals. We're do-it-yourself types so checkbook control sounds very appealing. Don't worry; I do understand the rules about sweat equity.

That said, I'm confused about the need for trusts, custodians, LLCs etc. I’d like to keep things legal with the least amount of fees. Can anybody suggest "for dummies" style reading that explains all this in the simplest of terms? Any other info would be much appreciated.

[Will Barnard]

For just a buy and hold of 1 or just a few properties, I don't see a need for checkbook control. Pick a custodian that does not nail you with per transaction fees. In other words, every time you need to pay a bill with the IRA, you don't want to have to pay a fee.
Equity Trust is one of those providers, I use to recommend them, but their service has become increasingly poor over the last 2 years.

To play devils advocate, it is my opinion that holding RE in an IRA is not the best use of it. You lose the depreciation advantage of RE and you have all the rules to be mindful of. If you buy right, what return can you expect with an all cash purchase? 10%? 12%?nyou can make that by having your IRA be a bank (lender) and not have all the managing responsibilities. Again, just my opinion.