Trusted Qualified Intermediaries for Secure 1031 Exchanges
A competent and trustworthy qualified intermediary (QI) is critical for a successful 1031 exchange. Technically, anyone can serve as a 1031 qualified intermediary unless they have been disqualified from the role, and there are no federal regulations of qualified intermediaries.
This does not mean that their work will be excellent and acceptable, because there are many complications with 1031 exchanges. It’s best to choose someone with experience in the specific kinds of 1031 exchange you want to undertake, with high levels of customer service, who will handle your funds securely, and who will ensure compliance with all legal requirements. Read on for tips on selecting a truly qualified QI, and how we at 1031 Exchanges Guys would love to help with your exchange.
Role of a Qualified Intermediary in 1031 Exchanges
One of the most important elements of a winning exchange is that the property holder (who is also the potential taxpayer) is not in receipt of any of the funds from the sale of a relinquished property, at any time before the exchange is complete. If this happens, then the exchange will fail. That’s where a great 1031 exchange qualified intermediary comes in: they hold the funds and park properties until the exchange is finished.
Another key consideration is that every kind of 1031 exchange comes with its own regulations, whether it be a traditional, reverse, new construction, improvement, partial, or even vacation home exchange. It’s wise to find a QI who can expertly facilitate the exact kind of exchange you want to undertake, based on years of experience.
Services Provided by Qualified Intermediaries
Your QI will prepare the 1031 Exchange Agreement and all relevant notices, provide examples of the best language to include in contracts, set up a unique and secure transaction account for each exchange, coordinate transactions, deliver regular account statements, work with title companies, and prepare tax reporting statements.
If any of these are not done correctly, it can derail your 1031 exchange and the transaction will be treated as a taxable sale with a purchase following.
Selecting the Right Qualified Intermediary
Not all qualified intermediaries are equal. You want to find one who can advise you on which kind of 1031 exchange to undertake and with experience in that specific type of exchange. At 1031 Pros, we have successfully completed more than 18,000 1031 exchanges of all types and work in all 50 states in the U.S. – always with a strong focus on compliance and meticulous attention to detail in every transaction.
We also go beyond the official duties of a QI, giving you access to a network of property management and real estate advisors after your exchange, and helping you create long-term investment strategies.
When selecting a qualified intermediary, be sure to read customer reviews and testimonials and select one that answers the phone when you call, no matter what time, and responds to emails within 24 hours. 1031 Exchanges Guys is that qualified intermediary, and we will bring you the fastest, most reliable, transparent, and secure 1031 exchange experience that you have ever had.
Risks of Not Using a Qualified Intermediary
If you do not use an expert, trustworthy QI for your 1031 exchange, you run the risk of having the exchange be invalidated, leading to immediate tax liabilities. At 1031 Exchanges Guys, we carefully and thoughtfully oversee each step of the exchange, ensuring complete compliance with all applicable regulations.
Thousands of happy customers
