Tip #1 - Compare Fees Looking for an IRA real estate custodian? That's a good first step, but remember, when you find that an IRA custodian allows real estate, look for another or two and compare the fees that each of them charges.
Also, make sure that they don't have some pet project lined up for you.
Tip #2 - Suggestions No, Limited Options Yes They are not supposed to make suggestions in a self-directed account, but they are allowed to "offer" limited options.
If you get a form that says check which investments you would like to make, then it isn't a truly self-directed account.
Tip #3 - The Best Custodian The best IRA real estate custodian is one that charges a reasonable annual fee, with no check-writing or other per-transaction fees.
There will also be a small fee for setting up the account.
If you want to transfer funds, you'll need to give them information regarding your current account and trustee.
You will also need to contact your current company and advise them that you are closing the account and transferring the fund.
If you have already received a roll-over check, you may feel a sense of urgency, in order to avoid IRS penalties.
But that's one reason that you shouldn't stop your search when you find that an IRA custodian allows real estate.
You are only allowed to take a roll-over once per year.
You can transfer funds again and again, but there are always fees involved and it lowers your balance every time that you do it.
Tip #4 - Advantages & Disadvantages When a self-directed IRA custodian allows real estate, you have the advantage of investing in a largely untapped market that continues to grow, despite the housing surplus.
It's a market that your new IRA real estate custodian may be unaware of.
I've been investing in the market for years and only recently became aware of it myself.
But, it's very logical and makes a lot of sense in this day and time.
Of course, until recently many people didn't think that they "would" find that an IRA custodian allows real estate.
Since most accounts are managed by bankers or brokers and investments are limited to stocks and money markets.
The housing market is a better option, but you have to be careful.
The disadvantages of investing in the housing market, right now, have to do with risks and time spent.
How long will the house sit vacant? How will you find eligible renters? Who will do the maintenance? How will you find the properties to buy in the first place? An IRA real estate custodian cannot provide you with that information.
You will either have to do all of the legwork, yourself or get some help.
Tip #5 - Finding A Good Custodian Is Only The First Step Finding that an IRA custodian allows real estate is only the first step.
You have a few more miles to go, before you will begin to see profits.
But with the right help and the right IRA real estate custodian, you can grow your retirement wealth and help an underserved market, at the same time.