Once I have decided to open a self directed IRA account to invest directly in real estate and have chosen a custodian, what are the practical steps that happen?
A. Open and fund your self directed IRA with your chosen custodian and make sure the IRA will have cash in it in time to make your investment. Before looking around for your investment, if you haven’t already established and funded your self directed IRA, you will want to begin there. Before moving any further, you will at the very least, need to open an account so that you have your IRA’s “name” to work with. Always remember, it is your IRA that is making the investment – not you. Generally, once the custodian receives your application for a self directed IRA, the application is processed and you receive your new account number. The form of your self directed IRA’s legal “name” is generally “XYZ Trust Company Custodian F.B.O. ‘Your Full Name’ ‘IRA’ (or SEP IRA, Roth IRA, etc.)’Account #’ “. For example: “XYZ Trust Company F.B.O. John Doe Investor, IRA, Acct. 123.mms.” With this new name, you may begin to search for your real estate investment. B. You must draw up all offers and/or con
