Has anyone in the Tulsa area used self-directed IRA's to fund their deals? I would like to meet with a local rep of a compnay that offers SD IRA's to get information on exactly how they work.

@Mark Turney I have not used SD IRA, but do have a Solo 401K and don't know any local contact here in Tulsa area. I used Nabers Group out of Denver, and they were great to work with on setting everything up.

In a nutshell, what is the difference in a SD and a Solo?

@Mark Turney

I'm not sure if there is a self-directed IRA provider in Tulsa. This is a pretty niche field with a few dozen firms that specialize in these services. As you do your research, you will find that there is a range of business models, quality of customer service and fees, and that expertise is far more important that location in selecting a provider.

If your investments will be someone one time and static in nature, like buying shares of a private placement, then the services of a trust company serving as custodian will be fine. Such self-directed IRA custodians perform the same administrative and reporting services fro an IRA as a more conventional bank or brokerage, but have the paperwork and staff training to document the more individualized types of investments that take place in non-traditional assets such as real estate, private lending, private company stock, etc.

If your investments will be more interactive and time sensitive in nature, such as direct ownership of real estate, you will want to explore a checkbook IRA LLC or Solo 401(k) plan. Such configurations will put you directly in charge of the funds with the ability to sign contracts and handle expense/income transactions without 3rd party paperwork, delay and per-transaction fees. This tends to much more efficient than using a 3rd party custodian.

There are several providers of such services here on BP as well as investors using the programs.  Get on the phone and do some investigating of service models.

@Mark Turney

I am not local to the Tulsa area, but would be happy to connect and discuss any questions you have about self-directed IRAs

Thanks

Carl Fischer

@Mark Turney

Self-directed accounts come in both IRA and 401k formats. One of the big differences is that a self-directed 401k (Solo 401k) has eligibility requirements. You must have self-employment activity and no full time W2 employees.

If you are eligible for the Solo 401k, it generally makes sense to use that option for several reasons. Compared to an IRA, Solo 401k contributions limits are roughly 10x higher and there is no custodial requirement for the 401k. You can take participant loans from the plan, you don't need the additional expense and administration of an LLC to have checkbook control, and there is a built in-Roth component. A spouse can also participate in the same plan, there are additional tax benefits compared to an IRA, and there is generally greater privacy. Finally, the plans are often quicker to setup and cost less money over time especially compared to most IRA LLCs.

Great information! Thank you all!