Does it matter if you use a local or national 1031 Exchange Qualified Intermediary (QI)? Wouldn’t it be better to select someone you can meet in person? While some investors derive a sense of comfort from proximity, the closest QI may not be the right QI.
To carry out a 1031 Exchange, your QI must be in place before you sell your investment property. The geographic location of your QI is not a critical factor for either documentation preparation or real estate closings.
But what of your peace of mind? These are your hard-earned investment dollars we’re talking about.
No matter their physical location, your QI should be experienced, accessible and dependable. They should be able to guide you through the exchange process and help your exchange glide smoothly along. They should be responsive to inquiries and timely in their communication.
If you are buying and selling within your home city, a local QI should be familiar with that market. However, a well-versed national 1031 Exchange Qualified Intermediary may be better suited to help you carry out an exchange both locally and from state to state. Regardless, a QI with a significant history of successful exchanges may serve you better than one with the ability to drop by for a cup of coffee.
No matter what your preference, to qualify for a 1031 Exchange you must have your local or national QI in place prior to the sale of your investment property.
For more information visit the www.1031investor.com.
I will never regret the decade we lived on our sailboat, Odysea, while our four boys were young. So thankful that real estate investing combined with the judicious use of both section 121 and 1031 Exchanges allowed us to step off the beaten path and experience the live aboard lifestyle.