So once you decide that a real estate IRA is right for you, you must make sure that you find a qualified and reputable custodian to handle your account. Now remember – most custodians do not handle self-directed IRAs. In addition, many do not handle real estate, so it is important to select a custodian that is well versed in real estate transactions and can set up your account without fear of any violations that can result in a taxable situation.
Even though there are many quality custodians that can establish a self-directed IRA, you should first check around and do your own diligence. Ask your friends, financial planners, CPAs, attorneys or other advisors if they can give you a referral. But be sure to ask any prospective custodian if they are regulated by the: (1) State Banking Commission; (2) NASD (National Association of Securities Dealers); (3) SEC (Securities Exchange Commission); and (4) the IRS. Make sure also that you determine whether they have ever been sanctioned or disciplined by any regulating authority.
Ask the custodian to provide you a professional profile for your review and analysis. Also look to see the volume of accounts that they have and their level of expertise. Ask the custodian if he or she can provide referrals that you can talk to or if they have significant relationships with other professionals that can be of service to you like CPAs and attorneys.
But at the end of the day, you must make sure that you are comfortable with the custodian you will be dealing with. This is your money and you need to make sure that you do not risk your retirement or your financial future. Real estate IRAs can be a great investment vehicle, just make sure that you are educated on the process.
Additional Information:
If you are looking for a real estate ira or if you are interested in setting up a real estate IRA, please visit our site at Self Directed IRA.
This article is for informational purposes only and is not meant to be tax or legal advice. Each situation is different and you must discuss your cancellation of debt issue with a qualified tax or legal professional. This article is not written to be used for the purpose of avoiding penalties under the Internal Revenue Code.
