Where to start…
Open a Self-directed IRA Account
A retirement account that is controlled by the owner and that allows investments in real estate and other non-traditional vehicles. You must choose a custodian or an administrator who will hold the assets of a the self-directed IRA. Doing this will give you what they call check book control of your money.
The most confusing aspects of the self directed investing industry is what the difference is between a custodian, administrator, and facilitator. After catching up with Tom Anderson (founder, President, & CEO of PENSCO Trust Company, a self-directed custodian – www.penscotrust.com we rounded up some answers for you.
Understanding what these providers do and how they work is vital to keeping your investment strategies safe.
A custodian is a company who is either
- + approved and regulated directly by the IRS, or
- + affiliated with or owned by a bank or trust company and subject to regulation from their state Banking Commissioner and/or the Comptroller of Currency and FDIC.
Custodians handle the formation and maintenance paperwork for your retirement account as well as handle the money for you. Because all custodians are regulated by banking officials or the IRS, trusting them to handle your money is generally safe.
An administrator is a company who handles the formation and maintenance paperwork required for your retirement account. Some administrators actually handle your money and accept deposits as well. In this regard, an administrator actually acts like a middle man between the retirement account owner and the bank where they deposits are eventually held, even keeping records, and providing statements, etc.
“Handing your money over to an administrator rather than directly to a custodian has no real benefits, although it does increase the potential for substantial risk of loss or liability,”
Just to give you another choice in custodians. Several of our clients have used Trust Company of America with success. They can be found at the following link:
They have a some great pages that show how to give yourself that check book control you’ll need to be able you to move forward when you locate the real estate and/or real estate notes you choose to buy.
For more information call Mike at (360) 609-5719 or email firstname.lastname@example.org