How does Self-Directed IRA work?

[Sheba Shimoji]

Hello, I recently came across at an article about self-directed IRA. I was wondering whether or not I can rollover my traditional IRA money to the self-directed IRA, so that I can use this money to invest in real estate without paying penalty, right? I am not familiar with this so I don't fully understand how it works. Do most bank offer this kind of IRA or do I need to search particular institute? Sorry it might sounds ridiculous to some but I'm a newbie and I have dumb questions. Any input will help. Thank you!