Create your own Real Estate Bank? - Posted by GT

Posted by phil fernandez on February 22, 2001 at 19:07:50:

Your accountant was half right. You, yourself can not actively buy or loan money out of your IRA, but your custodian or trustee that you appoint can on your behalf.

There are some good articles in the How To Articles section that are written by Richard Disich and Hugh Bromma that explain the concept much better than I can.

Richard Disich is Mid- Ohio Securities. Both Richard and Hugh actively participate in the CREOnline conventions. The convention is a good time to corner them with your questions.

Create your own Real Estate Bank? - Posted by GT

Posted by GT on February 22, 2001 at 18:17:49:

Has anyone personally set-up and used Mid Ohio Securities to set up their own “IRA real estate bank” ? They’re an advertiser on this site.

I’ve been involved with creative real estate investing for 6+ years. I’m always learning something new. The method of directing your personal IRA account or others personal IRA accounts to invest in real estate sounds like a great idea.

Does it work? Has anyone done it successfully?

The reason I ask is that I called my broker at Morgan Stanley Dean Witter, and they said you can’t invest retirement money in real estate or mortgages. Was this an unknowlegable broker I was talking to?

I’m looking at doing some big dollar creative real estate deals this year, and it sounds like this would be the way to pool together extra cash.

Any help and advice from those of you that have used this method, or have any direct dealings with Mid-Ohio Securities, would be greatly appreciated.


It depends on the IRA Custodian - Posted by Michael Morrongiello

Posted by Michael Morrongiello on February 22, 2001 at 20:47:34:

Many so called “boutique” IRA custodians like the Paine Webbers, Merrill Lynch’s, etc. of the world do not OFFER the flexibility for you to invest your funds into investment vehicles that are typically not among the array of offerings they have for you. Ofcourse they make fees on placing your investment funds into these various offerings.

Mid Ohio Securities is a great company. I highly recommend Richard’s book surrouding IRA’s

As your IRA or ROTH IRA Custodian they clearly allow you to broaden your investment options.

To your success,
Michael Morrongiello

Re: Create your own Real Estate Bank? - Posted by Ron (MD)

Posted by Ron (MD) on February 22, 2001 at 19:59:52:

I just set up a Roth IRA for doing rehabs. It’s with Entrust (Hugh Bromma), rather than Mid-Ohio.

I talked to both before starting the account. Mid-Ohio is very prominent here and is routinely recommended by Ron Legrand.

However, I found Entrust to be more knowledgeable and creative. In the last few weeks I’ve bought two houses within my IRA and made a couple of payments to contractors. Entrust’s service has been exceptional. I do think Entrust is marginally more expensive (not enough to matter), but I’ve been very satisfied.

Having said that, you should know that profits in an IRA are difficult to get out…especially if you are younger than 59 1/2. Be sure you understand what the restrictions are.

Ron Guy