Tips for Finding a Real Estate Attorney to Help with Your 1031 Exchange

Finding a real estate attorney is an important aspect before becoming involved in real estate investing or a 1031 exchange. The right one will keep you on track and help lessen your liability in your real estate investments. Here are a few tips for finding a good real estate attorney for your 1031 exchange.

Tips for Finding a Good Attorney

• Talk to friends, family members and co-workers, or your state's Bar Association for referrals.

• Talk to local real estate brokers for referrals.

• Call a local realtors association for referrals.

• Prepare a list of questions pertaining to your situation. Most lawyers will answer simple questions over the phone for free.

• Identify a number of possible attorneys and call each one.

• Ask how much each lawyer charges per hour, and request an estimate of the time required to complete the tasks you require – looking over contracts, handling disclosures, and helping with the closing.

• Choose an attorney.

Questions to Ask

Here are some questions to ask your attorney when considering who to hire:

• What experience do you have in creative real estate investing such as subject to investing The Attorney should be open to and understand creative real estate investing.

• How much of your practice is in real estate? It should be at least 30% to 50%. In smaller markets there would be less need for an attorney to devote all their practice to real estate.

• Do you have other real estate investors as clients? If so, ask if you can contact them for references.

• What are your fees? The price the attorney charges is not as important as how well they work for you. The old proverb you get what you pay for applies here.

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.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

When to Involve a Real Estate Attorney in your 1031 Exchange

There are a lot of moving parts in a 1031 exchange and many players involved. Some taxpayers don’t know who to involve in their exchange. Should you involve your attorney? CPA? Financial planner? Someone else? In this article, we are going to discuss when it’s a good idea to involve a real estate attorney in the 1031 exchange process.

The Role of a Real Estate Attorney

There is a lot of complicated documentation that comes with any 1031 exchange. If you’re confused about any of it, your attorney can help clear things up. Your attorney can read through and help you understand purchase agreements, contracts, exchange documents, and closing documents that relate to your 1031 exchange.

Other Professionals

Your attorney is not the only professional you need on your 1031 exchange team. Far from it! Perhaps the most important person to have on your exchange team is a skilled qualified intermediary. This should be the point person throughout the exchange process. You should also consult with your CPA and financial planner to discuss the tax implications of the exchange and also how it will impact your portfolio.

CPEC1031

CPEC1031, our intermediaries have twenty years of experience helping taxpayers defer capital gains taxes when selling real property. We can prepare your 1031 exchange documents, answer all of your questions, and advise you throughout your exchange. Get your 1031 exchange up and running today by calling our qualified intermediaries to start the process. With offices around the United States, we are fully equipped to facilitate your exchange, regardless of where your property is located.

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

6 Tips for Finding a Great Qualified Intermediary

Before you hire a qualified intermediary for your 1031 exchange, you should do some checking around to make sure that they have a good reputation and solid track record of satisfied clients. Here are some easy ways to verify that your dealing with a reputable, experienced QI.

1. Online Directories

If your QI is a licensed attorney, you can easily check with their state’s board of attorney professional responsibility and state bar association. For example, in Minnesota, you can go to the MN State Bar Association website and confirm that your QI is a member of the Minnesota State Bar Association. Other states have similar online directories.

2. Better Business Bureau

Contact the Better Business Bureau (BBB) and see if your QI has a good reputation in the business community and if your QI BBB accredited. You can also check online at: https://www.bbb.org

3. Secretary of State

Check and see how long your QI has been in business with the Secretary of State’s office. 

4. Special Certifications

You can also ask your QI if they have a fidelity bond, errors and omissions (E&O) or other special certifications.

5. Ask Around

Ask around with other investors, attorneys, bankers and title-closer; they will know who is good to work with.

6. References

Lastly, you can and probably should ask your QI for references. If they can’t or won’t give you the names of some people that can vouch for them, then it's time to move on.

Saving money in taxes is a strong motivator. I hope this information helps you safely and successfully navigate through the 1031 tax deferral process.

• Start Your Exchange: If you have questions about finding a qualified intermediary for your 1031 exchange, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2017 Copyright Jeffrey R. Peterson All Rights Reserved