An excellent choice for those interested in real estate investing is uDirect IRA. Investors with a self-directed IRA with this firm can invest in any IRS approved category. However, this uDirect IRA differentiates itself from being an alternative real estate investment specialist. Besides standard real property and REITs, it also offers real estate notes, private loans, raw land, single-family homes, and apartments along with tax lien certificates.
One advantage that it has over the competition is check writing. This is very useful especially with real estate investments as these investments can be illiquid and require substantial cash investments.
For instance, real estate investors that have rental properties are responsible for maintenance, which can be costly. Some maintenance issues like broken roofs, are sudden and need to be fixed promptly. Therefore, check writing allows investors to quickly access funds to repair rental properties.
Who uDirect is best for
This custodian is best for real estate investors who prefer to invest in the long term. It has many fees, like transaction fees that aren’t too large and it even gives investors six free transactions per year.
Check out our roundup of the Best Self-Directed IRAs
uDirect investment options
This firm specializes in real estate transactions, but also has the following available investment choices:
- Commodities include any agriculture or energy (oil) products.
- Precious Metals like Gold.
- Private investments in LLCs, LPs, or C corps.
- Private loans like car loans and equipment leasing.
- Judgment liens are also known as legal settlements and occur when a court orders creditors to seize a defendant’s business, personal or real property. Judgment liens can occur as a result of a car accident. If the person who is at fault during the accident can’t cover the victim’s expenses, then the judge might grant a judgment lien over the at-fault party. The at-fault party would then have to pay restitution, including wage garnishment to the victim.
uDirect features
Some features include a robust website that handles online account set up and maintenance. However, some more complex forms need to be scanned and uploaded, which can be cumbersome.
It also offers self-directed 401(k)s and other flexible investment choices. Lastly, it has investor education materials and information on common alternative investment sectors.
It has four main fees, which are account set up fees ($50), renewal fees ($275) transaction fees ($35) and storage fees ($8-$18/mo.) Each client receives 6 free transactions per year and storage fees apply to various physical assets like currencies along with precious metals.
Customer support
uDirect IRA has a decent customer support team. Since they’re a smaller firm, they don’t have the resources larger custodians have. Related to this, they don’t have the partnerships with 3rd party advisers like Entrust Group does.
Pros
- Variety of real estate and non-real estate investments
- Good fee structure
- Online portal and educational resources
- Check Writing
Cons
- A smaller customer support team
- Tedious paperwork procedures for certain transactions
- Not an actual custodian, but acts as a matchmaker for investors. It uses American Estate and Trust as its custodian.