Are you confused about which IRA real estate custodian you should choose to maintain your retirement account? Not sure what to look for in a great IRA real estate custodian? This article will discuss the role of an IRA custodian and how to make sure you find the best custodian possible.
First of all, why do you need an IRA custodian? A custodian is responsible for the maintenance of assets and managing and keeping records of all transactions. They basically make sure everything runs smoothly and abides by all federal laws and regulations.
If you want to invest in real estate, then you’ll need to find an IRA custodian that allows real estate transactions to be made. And in order to be able to invest in real estate, you need to use a self directed IRA to do so. Self directed IRAs have way more investment options than regular IRAs or 401k plans, and you have sole control over what happens within your account.
Basically, an IRA real estate custodian acts under the direction of the account holder. You’ll have to make a few investment decisions each year and explain them to your IRA custodian- and they make sure your decisions are valid and completed. They tend to have to do more work than regular custodians because trades can be conducted at any time throughout the year- which is why they may be more expensive than regular custodians.
Be aware that an IRA real estate custodian cannot give you legal or tax advice. They can only provide you with unbiased educational material or refer you to certain tax codes when appropriate. So, you’re ultimately responsible for dealing with any legal issues that may come about.
An IRA real estate custodian is also not legally allowed to suggest good deals to a client. However, they can introduce you to advisors who can help find good deals. IRA custodians with a lot of connections and experience can provide you with many benefits than less-known custodians.
So how can you find the best IRA real estate custodian? Well, you could research all the different companies that have custodians available and make sure each IRA custodian allows real estate investing, but this could take months to do.
I recommend doing it a different (and easier) way. I suggest that you leverage the knowledge and experience of a well-established company that offers IRA real estate investing [http://www.increase-ira-wealth.com] education and guidance- and have them choose the right IRA real estate custodian for you! This way, you can learn what IRA real estate investing entails and be connected with a custodian that knows how the whole process works.
Consider these two situations:
1) You go and look for a custodian on your own. By doing this, you would most likely land yourself in a situation where you would still have to do most of the legwork. You would have to find the right deals to purchase, make all necessary renovations and repairs, and either find a qualified buyer or act as a landlord if you rent the property out.
2) You get introduced to a well-respected company that already knows how IRA real estate investing works. They have a socially conscious investing program set up that fixes up groups of houses in neglected communities as well as the community itself. They already know who the best IRA real estate custodians are and have connections with the right people. They set you up with a qualified custodian, find the properties, make all the necessary repairs, and even find qualified buyers to purchase the property you invest in.
Which situation sounds better to you?