Finding the right qualified intermediary can make or break your 1031 exchange. That’s why it’s important to put in the time and effort required to find the right intermediary for your situation.
Here are a few questions to ask your qualified intermediary during the selection process:
Do you have a separate segregated escrow account for each client?
What is the level of insurance for each claim and what is the total amount of insurance that’s applicable in the event of an adverse situation?
When a qualified intermediary holds your money, ideally they will have a separate escrow account so your funds are not co-mingled with any other client funds or with the operating account of the qualified intermediary. Furthermore, you want to make sure that they have a dual signature account where the bank requires 2 signatures (your co-signature and the QI’s) for the release of funds. That will prevent someone from absconding with your funds or investing them in any way that would be disadvantageous to you.
Getting the Help You Need
At CPEC1031, we have twenty years of experience working on transactions and can help you through the details of your next deal. Contact us today at our downtown Minneapolis office to learn more about our 1031 Exchange services and how we can assist you with your next commercial transaction.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
© 2022 Copyright Jeffrey R. Peterson All Rights Reserved