The Orginial Realty Investing Magazine
When it comes to effectively conducting your #1031 exchange, one of the most important partners you will rely on is the qualified intermediary (QI). This is the individual who will help facilitate your exchange, and will hold the exchange proceeds during the exchange period.
Because the QI will have control of your money, it is important that you thoroughly research any potential QI ahead of time to ensure that they have appropriate security and safety measures in place to ensure the safety of the exchange proceeds. You will also rely on this individual’s knowledge and guidance with regards to deadlines and other important matters, so understanding their experience level, the number of exchanges they have previously completed and their diversity of experience across all types of exchanges is also important.
Interestingly, despite the critical role a QI plays in the exchange process, there is no federal government or private entity that oversees or regulates qualified intermediaries or the services they provide. This is why appropriate due diligence is so important at the investor level.
If a 1031 exchange is in your future, visit our website to learn more about these powerful tax deferral tools and our qualified intermediary and replacement property locator services.