Is it Expensive to have a Real Estate IRA?

Question: Is it expensive to have a real estate IRA? Won’t I have to pay a ton of custodial fees to manage a real estate IRA?

It’s not expensive to invest your IRA in real estate. At New Direction Trust Company, we have a structured fee schedule so you’ll know exactly what you have to pay and when. These fees include a one-time startup fee and no fees until you make your first transaction.

Some people say that because brokers and banks generally only allow traditional investments in your IRA like stocks and bonds, that non-traditional investments somehow cost more money. But any account has costs. We encourage you to do your due diligence and check out fee schedules for securities-based IRA providers and compare that with how much money you can make with a smart non-traditional investment in real estate or precious metals.

If you want to hold real estate with your self-directed IRA, you’ll have to find a provider like New Direction Trust Company that specializes in holding real estate. There will be different costs than those charged by traditional IRA providers, but we’re confident our fees are competitive—and many times they are lower. In short, you don’t need to pay extra for the privilege to invest in non-traditional assets like real estate with your IRA.

Like all investments, due diligence is required to decide what will work best for your IRA and its investments. New Direction Trust Company can help with the administration and bookkeeping of your IRA, and will ensure your transactions and/or conversions are done according to IRS code.

Current or prospective clients are always welcome to review our fee schedule. Please don't hesitate to contact us at 877-742-1270 or