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.
When you're trying to do a 1031 exchange, having a qualified intermediary is important. It’s so critical to the deal that a deferred exchange flunks without a QI. Among multiple pieces of paper the Qualified Intermediary provides you the confirmation documentation that the IRS requires.
Treasury regulations show why a QI is required, and what kinds of eligibility restrictions there are. Most of these restrictions deal with self-dealing and conflicts of interest – generally, you cannot use a family member or someone who has been working for you for a long period of time in some general role such as your personal attorney or CPA. Aside from this, your choice of QI is pretty wide open.
The 1031 coordinator can be in any state, as long as your property is like kind, and that includes having both properties be in the U.S.
You're generally on solid ground with a Texas to California exchange, as long as properties are like kind. You have to work with 1031 exchange time guidelines and a Qualified Intermediary – normal fees are $600-$1000, but in this case, the QI might have to do two separate deals which may increase the cost.
Get free advice from Marilee Hill about a 1031 exchange process before going to a Qualified Intermediary. Marilee Hill has 20 years experience in the business and is a Registered Representative with a series 7 license qualifying her to provide properties for Accredited Investors governed by Reg D of the Security Act of 1933. She knows about the technical side of the business and the people side of the business as well. Marilee Hill has a lot of experience navigating these kinds of deals and consulting clients to stay on the good side of the IRS. Don't be afraid to ask her about a deal that you're dreaming up.