Self-directed IRA rec?

[AppTrail]

Anyone here have a self-directed IRA custodian they like? Interested in private lending for real estate. Could use after-tax funds, but looking into deploying through retirement account.

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[CubsDynasty]

EQRP has been great. Full control and good support. Haven’t found any investment limitations yet.

 

[Caninehalitosis]

Pacific Premier Bank, Formerly Pensco. A good book is "Self Directed IRA Handbook" by Mat Sorensen. I and one of my partners and a surgeon buddy have all had Self Directed IRA's and used them for buying and managing Rental property. I have also used my for:

1. Hard Money lending (Arixa Capital)
2. Flipping home
3. Buying, renting, selling rental property
4. Trailer park syndicate
5. I even wrote a mortgage on for my surgeon buddy to buy more real estate.

Lots of rules but all of them fair.

 

[AppTrail]

EQRP has been great. Full control and good support. Haven’t found any investment limitations yet.

Will def check them out...curious what fees you pay?

 

[AppTrail]

Pacific Premier Bank, Formerly Pensco. A good book is "Self Directed IRA Handbook" by Mat Sorensen. I and one of my partners and a surgeon buddy have all had Self Directed IRA's and used them for buying and managing Rental property. I have also used my for:

1. Hard Money lending (Arixa Capital)
2. Flipping home
3. Buying, renting, selling rental property
4. I even wrote a mortgage on for my surgeon buddy to buy more real estate.

Lots of rules but all of them fair.

Thanks for the recommendation. I have a good friend I've been following his deals for the last 3 years. So wanting to do some private lending for his latest real estate fund.

 

[CubsDynasty]

Thanks for the recommendation. I have a good friend I've been following his deals for the last 3 years. So wanting to do some private lending for his latest real estate fund.

Done exactly that with them. It’s a legit blank check account. Couple syndication deals through the years, preIPO stuff, debt lending, doesn’t matter.

 

[caligas]

I’ve always been a Fidelity guy. Always happy with their service.

 

[centdoc]

Look into Fidelity. I was with another custodian, they were robbing me with fees. Fidelity has no fees. Caveat, is they may not do all alternative investments.

 

[AppTrail]

I’ve always been a Fidelity guy. Always happy with their service.

Look into Fidelity. I was with another custodian, they were robbing me with fees. Fidelity has no fees. Caveat, is they may not do all alternative investments.

I doubt Fidelity will let me private lending/real estate deals, otherwise I totally would!

 

[Caninehalitosis]

Fidelity does not offer SDIRA

 

[caligas]

Fidelity does not offer SDIRA

Got it. I didn’t really understand what a SDIRA was, I thought it just meant that you chose the investments (before reading about it)

 

[AppTrail]

Got it. I didn’t really understand what a SDIRA was, I thought it just meant that you chose the investments (before reading about it)

The term is somewhat vague. Lot of big custodians offer self-directed, but it’s really just allowing you to choose individual stocks, rather than just funds. True self directed allows you to invest in anything permitted by IRS like real estate, private lending, etc

 

[PainDrain]

The term is somewhat vague. Lot of big custodians offer self-directed, but it’s really just allowing you to choose individual stocks, rather than just funds. True self directed allows you to invest in anything permitted by IRS like real estate, private lending, etc

In a self-directed IRA can I invest in real estate and take out a mortgage that is paid via the IRA? Or would I have to pay for it in its entirety? How does this work exactly?

 

[AppTrail]

In a self-directed IRA can I invest in real estate and take out a mortgage that is paid via the IRA? Or would I have to pay for it in its entirety? How does this work exactly?

Good question, I'm honestly not sure...I think you can do this, but there is a list on IRS website about prohibited transactions for example you can't use IRA funds to buy a home and live in it. For my case, I'm planning to do private lending to a real estate investor who is raising capital. Supposed to pay 10-12% a year (divided into monthly payments) until I decide to call back my capital.

 

[centdoc]

I doubt Fidelity will let me private lending/real estate deals, otherwise I totally would!

I have the DLP Lending Fund in my Fidelity SEP and Traditional IRA. But, You won’t be able to do individual deals.

 

[Caninehalitosis]

A SDIRA can borrow money buy real estate. In general the down payment must be about 50% (from the SDIRA) so the loan to value is about 50%. The loan must be "non-recourse" meaning the debt is secured by the property. Co-investors are OK as long as they are not disallowed.

Again, get Mat Sorensen's book:

The Self-Directed IRA Handbook

The Handbook clearly explains the prohibited transaction rules, investment structures, common self-directed IRA investment assets (real estate, a private company, IRA/LLCs, private equity, hedge funds, crowdfunding, precious metals), and IRA tax pitfalls (UBIT & UDFI tax). The Handbook includes...

shop.matsorensen.com

It is $20 and answers 95% of all questions you might have.

 

[Maverikk]

Wow! Are you saying you could buy a rental property with pre-tax dollars as long as you could pay 50% of the mortgage up front? Most properties I would think would fall into this if the property has enough value for the other 50% to cover the non-recourse loan, juat a matter of convincing a bank for that mortgage.