THE WORLD FOR EXCHANGERS IS CHANGING
Tax deferred exchanging in some form has been with us since 1921. Prior to 1984 the most difficult part of an exchange was arranging the transactional logistics so you close your relinquished proeprty sale on the same day that you acquired your replacement property.
After 1984, the concept of deferred exchanging was codified into the law with Section 1031. This made the exchanging process much easier logistically for Exchangers because they now had a 45 day window in which to identify new replacement property as well as a total exchange period of 180 days. Up until recently the toughest part of an exchange was finding a suitable replacement property within the short 45 day window an getting it under contract. But nowadays, an entirely new obstacle has arisen for Exchangers. Namely, the security environment in which your exchange funds are held between the time you sell and when you buy, as well as how your personal and transactional data is kept secure by your Qualified Intermediary. We were reminded just this last December how dangerous our online environment can be when the two largest title company owned Qualified Intermediaries were compromised by a ransomware hack. Some Exchangers lost their exchanges and had to pay gain taxes, while many others had their personal data pilfered. This is not a message intended to scare you as an Exchanger. But it is a call to action to remind you that you need to be the best steward possible for your exchange proceeds and your personal data. In the meantime, 1031 CONCIERGE will be here to help you as you ensure that your exchange will be handled appropriately, while your data and funds are kept completely safe.EXPERT PLANNING
Let's be honest, no real estate investor completes enough exchanges throughout their ownership history that they can remember every single 1031 oriented nuance. That is why it is critical to have timely access to expert assistance from an exchanging veteran. Whether it is getting a fast answer to a question, architecting a complex transction with many moving parts, or helping you with your exchange math, we are here for you. All of our concierges have completed tens of thousands of 1031's.
INTERMEDIARY REFERRALS
The tax deferred exchange industry is largely unregulated. here are a few states which require some modest lcensing and bonding, but by and large it is up to you to ensure that your exchange is being facilitated correctly. We know all the players and exactly how they will process your exchange. That is why we are very careful about whom we suggest as a Qualified Intermediary. We'll send you to a firm who is not only experienced, but utilizes the absolute best security and encryption practices available.
ENCRYPTED FACILITATION
The days of assuming your exchange is being facilitated safely and securely simply because your Qualified Intermediary is part of a larger title company are gone. If you allow your exchange to accommodated through Gmail and have no 24/7 visibility into your exchange proceeds you are playing with fire. We will introduce you to firms who take the security of your data, and especially your hard-earned exchange proceeds, as seriously as you do. Even if this is your first 1031, you owe that to yourself.
INSTITUTIONAL PROPERTIES
One of the interesting aspects of exchanging has been the growth of the alternative investment real estate speace for 1031 Exchangers. With the Tax Cut and Jobs Act, the IRS has made it possible for you to exchange into an interest in a professionally managed institutional property where you will receive your share of the rents monthly. You'll also keep your standard tax benefits and they can even assign you debt to keep your deal tax free. We'll refer you to a platform so you can see what's available.