Tips for Choosing the Right 1031 Exchange Accommodator.
Nowadays, there are many property exchanges intermediaries and this makes it difficult to make the right choice. Below are tips for selecting the best 1031 exchange facilitator.
Make sure that the 1031 Gateway qualified intermediary you are considering has extensive experience in real experience. A 1031 investment properties accommodator who has been in the business for long will know how best t handle the exchanges including the most difficult ones. A good way to determine their experience is to ask the facilitator how many exchanges they have successfully completed in the past. They will also be able to help you understand your situation and guide you on making the right options.
Another way of establishing their reliability and competence is by requesting for client references. See if the references are satisfied with the services provided or whether they have complaints against the exchange accommodator. With this information, you will be able to establish if they are right for you and your business.
Ask various exchange companies where they are going to hold your funds before you make any decision. The facilitators should have various reliable options for holding your funds. It is advisable to ensure that your funds are held in a segregated qualified trust or in an escrow account which are safer than other accounts. However, if the facilitator does not give you the option of choosing a bank of your choice, it is recommended that you look for another trustworthy facilitator.
In order to get the best exchange services, you need to ensure that you select a full-time exchange firm. This is prudent so that they can be updated with the latest tax code changes and rulings and help you apply them to your situation.
Inquire if the company conducts background checks on its employees before hiring them to manage your exchange funds and assets. This will ensure that they only hire reputable employees who put the needs and interest of the client’s first. Besides, a reputable firm will not hesitate to provide you with a copy of their internal control which protects your funds from theft by employees.
The exchange facilitator should maintain a fidelity bond to protect all its exchangers against theft and embezzlement. The insurance is also critical so that you will not have to pay taxes because of the firm’s negligence.
You should always evaluate the exchange company you are considering and ensure they have a good reputation in the market. It is a good sign if they are an active member in any professional organization for facilitators.