Interfacing with Self-Directed IRA Investors

[Compton Oliver]

I run a firm that primarily invests in what many real estate investors would call Alternatives. Generally, we buy small to medium companies, create synergies between existing investments and partnerships, restructure management teams, cut the fat and then either spin them off or hold for income. Private equity; in a nutshell. We do very few real estate transactions, so Bigger Pockets isn't the most familiar community. However, I thought it would be worthwhile to reach out and tap into depth of knowledge shared here regarding SDRIA investing. So please indulge us in a bit of market research. 

We are opening up our fundraising efforts to possibly include Self-directed IRA investors, which isn't an avenue that has been previously explored by us, but seems to be a pretty popular investment vehicle on Bigger Pockets and of course throughout the entirety of the United States, given the extremely favorable tax benefits. We genrally raise debt and equity through investment banks who then reach out to national banks, savings banks, family offices, etc. A very costly process, not always resulting in the sort of outcome desired when it comes down to the final terms. We haven even reached out to a few new bankers as well as those we've retained regarding a campaign targeting SDIRA Investors and the cost will be immense with additional fees to be added at each closing.

What we're looking for is a bit of insight that can help us to complete this campaign directly and in effect, save a great deal for our investors. 

We want to know where it is that most Self-directed IRA holders seek out new investment. We're already booked for quite a few upcoming conferences and expos, but if there are any particular events in mind, that would be very helpful. Beyond this, what are your go-to online outlets when seeking new investment opportunities. Additionally, we are opening sponsorships with a handful of IRA custodians and we would like some insight on which are the most favored here, as well as if any parties here have actually invested in an opportunity which was a sponsored through their custodian.

Any and all insight provided here will be very much appreciated.

[Dmitriy Fomichenko]

@Compton Oliver

There are many ways investors look for potential investments, but let me share a couple with you: referrals and networking. 

Regarding you opening up the opportunity for investors to invest in your business ventures: I recommend you get with a tax attorney or a CPA (make sure they are experienced in this field) and explore the issue of UBIT (Unrelated Business Income Tax). Depending on how you structure the investment UBIT may be avoided, I would definitely recommend this route because taxation inside of a self-directed IRA or self-directed 401k can turn off many potential investors.