Custodians

[Guest yelena]

hi,

I am a new person and complit dummy in all IRA and RothIRA...

So, if I would like to open RothIRA or IRA and would like to use them to invest in Real Estate, do I have to have a custodian company? Theis fees are pretty high.

Can I just open the account on my own and then invest in Real Estate with it without any custodians and without paying them the fees?

Thanks.

[Guest yelena]

also, where do I go to open RothIRA or IRA?

[No Name]

I'm afraid you'll need a custodian. Do a Web search on "Self-Directed IRAs". There's a company in San Francisco called Pensco that may be able to assist (no affiliation).

I assume there's enough $ to invest in said Real Estate. If the fees seem high, wait 'til you see closing costs, etc.

[John G]

> IRA and Roths are absolutely not do-it-yourself accounts. You must have a custodian who must live by US Internal Revenue Service regulations.

> There is virtually zero possibility in doing any real estate transactions with your proposed IRA - first because there are major regulatory restrictions, and second because you just won't have enough funds in an IRA/Roth initially to do large transactions. And yes, even if you got over those hurtles, the fees are very high. I just don't see the average citizen just getting started with IRA/Roths having any reasonable option for investing in real estate outside of REITs like CARS, AHR, etc. which trade on the stock market but operate as real estate investment trusts.

> Get a copy of IRS publication 590 as it covers the basic rules for both IRAs and Roth IRAs.

[Guest yelena]

thank you