Please use this guide when investing in Private Entities through your IRA. Should you have any further questions please don’t hesitate to contact one of our experienced Transaction Managers at 800.320.5950.
Private Placements/Private Entity investments can be potentially very lucrative. Whether you are investing in a private entity that is buying large real estate holdings or the entity is a business start up, here are the procedures on how to purchase these private alternative assets in your IRA at Quest.
The first step in funding this transaction is to make sure you have the vesting for the private placement/private entity correct on the documents. NOTE: You are not personally investing the money; it’s your IRA that is investing the money. Thus the IRA will need to be named and vested to hold the asset. Thus, all documents must be registered
Quest IRA, Inc. FBO (Your Name) IRA (Your Account Number)
You will also need to submit Quest IRA’s internal forms (http://questira.com/all-forms/):
1. Direction of Investment for Private Entity
2. Private Entity Instruction Letter
Along with our internal forms for the private placement/private entity, we will need the PPM, Subscription Agreement, Operating Agreement, LLC, LP, JV, etc…, before we can generate a check or wire for the funding of the investment. Please make sure all the necessary fields are completed on the Direction of Investment for Private Entity & Private Placement Instruction Letter form for timely funding.
When the investors tax ID or physical address is required on the entity documents, please make sure that you use Quest IRA’s information:
Tax ID: 61-1435085
Address: 17171 Park Row Ste 100 Houston TX 77084
IMPORTANT: It is up to the client to determine if the private placement/private entity investment complies with the applicable state & federal laws.
Quest IRA, Inc. does not provide tax, legal or investment advice and thus we cannot provide any legal documents for the creations and/or funding of your private placement/private entity. This will be the responsibility of the client to ensure the correct corresponding.
Items Needed for Funding Private Placements:
3- Copy of the Securing Agreement
a. Subscription Agreement
b. Operating Agreement
c. Private Placement Memorandum (PPM)
What to know after funding of your private placement/private entity with Quest:
A copy of all the signed legal documents must be mailed, faxed and/or emailed to Quest IRA, Inc. at the following location:
Corporate – 17171 Park Row, Suite 100 Park Row – Houston TX 77084 or,
Email – firstname.lastname@example.org or,
Fax – 281.646.9701 or 972.314.9589 or 512.610.3332
The documents will be kept in a fire proof safe in Houston before being shipped for final safe keeping to our custodian which is First Trust Company of Onaga located in Kansas.
Fair Market Value of your investment will be requested for every calendar year your Quest IRA owns the asset. Clients will be sent the FMV form to complete and then should return the form by fax, email and/or mail.
Payoffs – When the investment is ready to pay off, the client will need to fill out a Verification of Payoff or Disposition of Asset Form for Quest IRA’s records.
Sell Asset – Should the asset be sold to another investors you will want to fill out the Direction to Sell Form for Quest IRA’s records.
Submit Your Forms: All forms can be mailed or faxed to any of our locations or emailed to Transactions@QuestIRA.com.
Note: At this time E-signatures are NOT accepted.