Here is a list of well-known and established custodians that facilitate the purchase of real estate, including rental properties, within a Self-Directed IRA.
A Crucial First Note: Always confirm the current fee schedule and services directly with the custodian, as these can change.
Major Self-Directed IRA Custodians for Real Estate
1. Equity Trust Company
One of the largest and most well-known custodians in the self-directed space, with a strong focus on real estate.
-
Website: https://www.trustetc.com
-
Contact: 1-855-673-4721
-
Details: They have extensive experience with real estate transactions and offer online account management tools.
2. IRA Financial
Known for its educational resources and a focus on “checkbook control” SDIRAs (often set up using an LLC structure).
-
Website: https://www.irafinancial.com
-
Contact: 1-800-472-0646
-
Details: They provide a lot of content (blogs, podcasts, videos) to help investors understand the rules.
3. Advanta IRA
A major custodian that offers self-directed plans with a strong emphasis on client service and education for alternative assets like real estate.
-
Website: https://www.advantaira.com
-
Contact: 1-800-341-5000
-
Details: They provide detailed fee schedules and guides on their website.
4. Millennium Trust Company
A large financial institution that offers custody for a wide range of assets, including self-directed IRAs for real estate and private equity.
-
Website: https://www.mtrustcompany.com
-
Contact: 1-877-468-3262
-
Details: They serve both individual investors and institutions.
5. Madison Trust Company
A specialized custodian for self-directed IRAs that allows investments in real estate, precious metals, and private placements.
-
Website: https://www.madisontrust.com
-
Contact: 1-800-721-4900
-
Details: Their website includes a library of resources on SDIRA rules.
6. Provident Trust Group
Another established player in the self-directed custody space, offering services for real estate and other alternative assets.
-
Website: https://www.providenttrust.com
-
Contact: 1-855-332-5859
-
Details: They offer both traditional and Roth SDIRA options.
Important Considerations Before You Choose
-
Fees are Key: Custodian fees for self-directed accounts are typically higher than for standard IRAs. Carefully compare:
-
Account Setup Fees
-
Annual Maintenance Fees (can be a flat rate or asset-based)
-
Transaction Fees (for each buy/sell action, depositing rent, etc.)
-
Wire Transfer Fees
-
-
“Checkbook Control” vs. Traditional Custodial Model:
-
Traditional Model: You find the investment, then direct the custodian to send the funds and hold the title. The custodian must approve and process every expense and deposit. This can sometimes cause minor delays.
-
Checkbook Control Model: This is a more advanced structure where your IRA forms an LLC. The IRA funds the LLC, and you, as the manager of the LLC, have checkbook control to make investments and pay expenses directly. This avoids custodian transaction fees but has higher setup costs and complexity. Custodians like IRA Financial specialize in this.
-
-
Do Your Own Due Diligence: This list is a starting point. The right custodian for you depends on your specific needs, the volume of transactions you anticipate, and your comfort level with their platform and customer service.
-
Consult a Professional: Before moving forward, it is highly recommended to speak with a tax advisor or attorney who is experienced with Self-Directed IRAs. They can help you structure everything correctly to avoid the severe penalties associated with prohibited transactions.
You can use the links provided to visit each custodian’s website, review their specific real estate investment guides, and request their current fee schedules and application paperwork.
