Don’t look to your local bank or mutual fund company for help when self directing your IRA. There are only a handful of IRA custodians who will allow you to invest your IRA funds in alternative assets like real estate, trust deeds and tax liens. You need to get an independent self directed IRA custodian that will allow you to self direct your funds into non-traditional assets.

Self directed IRA custodians may have broader rules for what investors can use their IRA to invest in. However, independently they can limit what assets IRA holders can purchase inside their retirement account. In some cases, the rules at the custodian may be stricter than what is even in the actual IRS code.

In addition, fees vary widely from one IRA custodian to another. Make sure you understand the fee structure before transferring your IRA funds. Custodial fees will be a key factor when determining the return on investment for any real estate investment you maybe structuring.

Investors should do thorough research when choosing a self-directed IRA custodian for their retirement funds. Keep in mind when self directing your IRA, there are also some time sensitive investments that may be difficult to manage inside your self directed IRA because of the approval process the custodian.

Self Directed IRA custodians are not allowed to give you advice on structuring your real estate investment transactions. Their main purpose is to hold your retirement funds and report the asset values to the IRS. If you need advice on how to structure a real estate deal properly, then check around and look around for a self directed or real estate IRA advisor. A reputable self directed IRA company should be able to point you in the right direction.