The questions here were received from interested 1031 exchangers visiting my website. I have chosen to leave the questions intact with their ambiguity, shorthand writing and misspellings so as not to act on the assumption as to what when unclear the questioner meant.
It's important to have a qualified intermediary when you're trying to do any delayed exchange – if you go to settlement and don't have documentation from the QI, the deal goes through and you have you have forfeited the exchange.
So what else is disqualifying? Your qualified intermediary must be without a conflict of interest. This means avoiding using family members, as well as professionals who do other work for you such as your regular lawyer or CPA. Treas. Reg. §1.1031(k)-1(g)(4) iii specifically addresses the QI’s conflict of interest.
For a delayed 1031 exchange, you must always have a qualified intermediary in every case. The qualified intermediary will charge between $600 and $1000, which is small change when it comes to facilitating this type of deal. It's a good idea to have a qualified intermediary on hand and use this person as a resource going toward a successful 1031 exchange deal.
Unfortunately, I cannot act in the role of qualified intermediary. You must find a professional to serve as QI, and that person can't have a conflict of interest – he/she cannot be your lawyer or anyone with prior ties to you. I can help you to find replacement properties.
If you want a real estate professional with a wealth of experience to help you understand more about 1031 exchanges, Marilee Hill has a good deal of experience in this field. After running her own apartments and leasing and managing, Hill moved into a broker role.
Hill understands that a lot of the real estate process is fundamentally about people. Dealing with sponsors and customers and other agents and brokers, Hill always puts other people first. Her motto says it all: “my clients’ success is my success.”
Ask Marilee Hill about what you can do with a 1031 exchange to boost your real estate income.