Investing in Europe and Self-Directed IRAs: Part 2

Greetings Rogue Investors,

This is going to be a blockbuster issue. First, I am going to update you on what we’ve found in Europe, then I’ll hand over the newsletter to Michael to talk about self-directed IRAs.

Investing in Europe

First, as I discussed last week, we are currently finishing up our second real estate research trip to the Mediterranean Ocean. In our quest to find the most beautiful and undervalued real estate in the world, we have hit pay dirt. Imagine the beauty of the rocky California coastline along the Pacific and add the spectacular sandy beaches of Florida. Now, imagine you could go back 20 years before these areas became too expensive and over crowded and you will start to appreciate this area along the Mediterranean. Add incredible and diverse culture and the best food in the world, and you have a place that is the closest to paradise that I have seen.

Here are some pictures of areas that we have visited in the last two days.

Believe it or not, the story gets even better. Not only is this a beautiful and undiscovered area, it is a great rental market. Today (April 27th), we just spoke with two real estate professionals (Vincent and Corrine) and they informed us that every day 10 to 15 people enter their office looking for properties to rent. At certain times of the year, properties command as much as 700 euros per week, assuming you can even find properties to rent. Combine this with low prices and you have an investment that will appreciate in value and is a cash flow machine.

What about property management? The local real estate agencies are hungry for rental properties and are all set up to manage your properties while you earn money from the comfort of your own home.

I guarantee that you will not find a more beautiful, profitable and enjoyable place on earth.

If you want a life changing experience, come join us in the Mediterranean on May 22, 2006. We only have a few spaces left so I encourage you to sign up before May 5, 2006. Here is the link for more information:

http://www.rogueinvestor.com/european_real_estate.html

Special Bonus Question

Can you can buy European real estate with your self-directed IRA?

The answer is yes. IRA rules do not prohibit you from purchasing real estate or securities in another country. The first step is to set up an account.

Self-Directed IRAs: Setting Up An Account

To realize the true power of your IRA, you need to find a company or trustee that specializes in true self-directed IRAs. Don’t be fooled by the big brokerage houses that say they have a self directed IRA. It is self directed only as long as you buy public securities, such as stocks, bonds and mutual funds.

Now, why do you have to set up a separate account?

The answer is that there are only a few IRA custodians set up to handle purchasing real estate in an IRA. The reason is that it requires a lot of paperwork and in some cases there is more perceived risk in buying real estate than securities. How they figure that buying shares of Ford, AT&T and Lucent is less risky is beyond me when you realize that real estate is backed by hard assets not paper.

So let’s start out this issue by looking at several IRA custodians and compare their prices and what they have to offer.

Pensco Trust Company

http://www.pensco.com

450 Sansome Street, 14th Floor
San Francisco, CA 94111

Mailing Address: P.O. Box 26903, San Francisco, CA 94126

Toll free: 866-818-4IRA (4472)

Client Services: 800-969-4472

Fax: 415-956-3016

 

Fees schedule: http://www.pensco.com/fees/Unlimited.asp

Example: Fees for an IRA valued at $100,000

Establishment Fee = $50

Annual Maintenance Fee = $200

Sterling Trust Company

http://www.sterling-trust.com/iramain.html

7901 Fish Pond Road

Waco, TX 76710

Mailing address: PO Box 2526, Waco, TX 76702

Phone: 254-751-1505
Toll free: 800.955.3434

Fax, IRA Services: 254-751-0872

Fee schedule: http://www.sterling-trust.com/pdf/stc_ira_fee_schedule.PDF

Three fee schedules: The Precious Metals IRA, The Basic IRA, and The Flex IRA. Any of these fee schedules can be utilized with a Traditional, SEP, Roth or SIMPLE IRA.

Precious Metals IRA: May hold only allowable precious metals including -- American Eagle gold, silver, and platinum coins, other coins as allowed under Internal Revenue Code §408(m)(3), and other precious metal products that meet the minimum fineness requirements and are manufactured by a NYMEX or COMEX approved refiner/assayer.

Basic IRA: May hold any number or combination of publicly registered or traded investments including – any asset permitted in the Precious Metals IRA as well as Mutual Funds, Public Stocks, Bonds, REITs, Brokerage Accounts, Public Limited Partnerships, Annuities, Bank Certificates of Deposit, Matrix NOW Accounts, and U.S. Government Securities.

Flex IRA: May hold any asset permitted in the Precious Metals IRA and/or the Basic IRA as well as Private Stocks, Private Limited Partnerships, Limited Liability Companies, Promissory Notes or Corporate Debt Offerings, Managed Commodity Trading Accounts, Trust Deeds/ Real Estate Contracts, Tax Lien Certificates, Real Estate, or other private placement investments or non-standard assets.

Example: Fees for a Flex IRA valued at $100,000

Set-up Fee = $25

First Year Annual Fee = $75

Annual Renewal Fee = $100

The Entrust Group

http://www.iraplus.com

Offices directory: http://www.iraplus.com/all_franchises.sqrl

Fee schedule for traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs and Coverdell (ESA): http://www.iraplus.com/iraplus/info/fees_assets_value.sqrl

1. Option 1: fee based on asset value of account

Account Establishment Fee = $50

Minimum fee = $125; maximum fee = $1,750

Example: Fees for an IRA valued at $100,000

Set-up Fee = $50

Annual Recordkeeping Fee = $550

2. Option 2: fee based on number of assets

Account Establishment Fee = $50

Annual Record Keeping Fee =

Minimum Annual Record Keeping Fee: $195 Per Asset, and/or Liability per year: $195 paid at time of acquisition

Fee schedule for Health Savings Accounts: http://www.iraplus.com/iraplus/info/hsa_fees.sqrl

Fee schedules for (1) Do Your Own Qualified Plans, and (2) “NOT” Do Your Own Plans, used for Entrust Individual 401(k) Plan and Entrust Flexible Profit Sharing 401(k) Plan: http://www.iraplus.com/iraplus/info/qp_fees.sqrl. This is for sole proprietorships, C corporations, S corporations, partnerships and other similar entities, and business owner, spouses, partners without common law employees.

Equity Trust Company

http://www.trustetc.com/index.html

225 Burns Road

Elyria, Ohio 44035

Phone: 440-323-5491

Toll free: 877-693-8209

see http://www.trustetc.com/company/contact.html for directory of departments

Fee schedule: http://www.trustetc.com/investment/investment-fees.html

*Assumes payment by cash or check.

Example: Fees for an IRA valued at $100,000 (standard fee)

Set-up Fee = $51.50

Annual Fee = $437.75

Millenium Trust Company

http://www.mtrustcompany.com

820 Jorie Boulevard, Suite 420

Oak Brook, Illinois 60523

Toll free: 800-258-7878

Self-directed IRA information: http://www.mtrustcompany.com/ira.html

Fee schedule: http://www.mtrustcompany.com/forms/Self_Directed_IRA_Fee_Schedule.pdf

Establishment Fee = $50

Annual Account Fee = $150

Example: Fees for an IRA valued at $100,000

Establishment Fee = $50

Annual Account Fee = $150       

Annual Asset Holding Fees: depends on assets

Fiserv

https://www.fiserviss.com

717 17th Street, Suite 1700

Denver CO 80202

Mailing address: P.O. Box 173859, Denver, CO 80217-3859

Toll free: 800-521-6974

Self-directed IRA information: https://www.fiserviss.com/portal/page?_pageid=1840,626893,1840_627486&_dad=portal&_schema=PORTAL

Fee schedule for traditional, Roth, SEP and SIMPLE IRAs: https://www.fiserviss.com/pls/portal/docs/PAGE/IAS_HOME/IAS_ASSETSLIBRARY/IRA-IA-1517.PDF

Annual Administration Fee = $55

Example: Fees for an IRA valued at $100,000

Annual Administration Fee = $50

Investment Related Fees: depends on investment type

TruSource, a division of Union Bank of California, N.A.

http://www.trusourcepartners.com

3080 South Bristol Street, 2nd Floor

Costa Mesa, California  92626

Toll free: 800-274-8798

Self-directed brokerage IRA information: http://www.trusourcepartners.com/asp/services.asp#sdbira

Trust Administration Services Corporation, a subsidiary of First Regional Bank

http://www.trustlynk.com/Advisors/trustlynkcorp/index_ap.asp

5950 La Place Court, Suite 160

Carlsbad, CA 92008

Toll free: 800-455-9472  

Fax: 760-603-0887

Self-directed services information: http://www.advisorsquare.com/new/trustlynkcorp/default.asp?storyid=2015878694

Fee schedule for traditional, Roth, SEP and SIMPLE IRAs: http://www.advisorsquare.com/new/trustlynkcorp/default.asp?storyid=2015878694