No extra charges for multiple replacement properties.
Others are just internet sites, with “fill in the blank” forms and anonymous email “customer service” replies. With e1031xchange you can call us and speak to a live representative. We are available any time of day to facilitate the exchange, and all clients are given the principal’s cell phone number for after hours access.
We maintain constant contact with your settlement agent to ensure the process is done correctly.
Other firms are in the business of selling your name to firms that want to sell you replacement assets. We don’t sell the names of our exchangers and hold your privacy in strict confidence. You won’t be getting annoying sales calls during the exchange period as you will with other providers.
FDIC insurance covers accounts in member banks up to $250,000. This does little good if your proceeds are deposited into a commingled account as they are with many other facilitators. Our client’s funds are deposited into a NYS Attorney Escrow account and therefore affords each taxpayer the full $250,000 of FDIC insurance under applicable law.
Fidelity bond, liability and errors and omissions insurance in place and evidence provided to all clients on request.
What Others Won’t Tell You
They are overcharging, with fees often exceeding $1,000 for an exchange, and “add ons” that can get the bill even higher.
They are making money trying to sell you a replacement, by selling their “lists” of exchanging taxpayers to salespeople trying to sell you replacement properties. And often the successful sale of a property earns the exchange facilitator even more fees.
Our fee is a single, disclosed fee of $395 for the entire exchange. That’s it, there is never an additional or hidden fee. Others charge wire fees, document preparation fees, and “miscellaneous” fees that can add up and create an unexpected bill.
Others require 3-5 days’ notice for the replacement property settlement.
We wire funds on the day of request. We can accommodate a same day wire provided the wire instruction is received by 2pm EST on weekdays.
Your funds are reinvested in risky investments, like auction-rate securities (such as LandAmerica 1031).
There are no IRS regulations on what a qualified intermediary can or can’t do with customer funds. Many intermediaries invest your hard-earned exchange proceeds in risky investments, hoping to earn high yields for themselves. But we hold the proceeds in a NYS Attorney Trust Account with a major New York City bank.
The LandAmerica 1031 case.
The lessons learned from the LandAmerica bankruptcy case should give caution to taxpayers before “parking” their exchange proceeds with just any qualified intermediary. On November 26, 2008 LandAmerica 1031 Exchange Services, Inc. filed for bankruptcy. At the time of the filing, 450 of its customers were holding over $420 million of proceeds from the sales of relinquished properties. The taxpayers argued that the funds deposited with LandAmerica should be returned in full to the taxpayers, as the money was held in trust for them. But the court disagreed, noting that the exchange agreement didn’t even use the words “trust” or “escrow” and placed no restriction on LandAmerica’s use of the funds deposited after the sale of the relinquished property. The taxpayers were treated as general creditors of the bankruptcy and were not entitled to a return of their exchange proceeds in full.
So, be careful.
Other exchange intermediaries comingle exchange funds, ours are held in a NYS Attorney Trust Account.
Other exchange facilitators have agreements that do not require the funds to be held in trust or escrow, our section specifically provides that ours are held in trust.
Others invest funds in risky, high-yielding investments, with the gains accruing to the intermediary. LandAmerica invested in risky, “auction-rate” securities. Ours are held in a NYS attorney trust account under the supervision of a NYS licensed attorney.
I wanted to thank you for the work you did. You and everyone in your team were fantastic and I will gladly refer any of my friends and colleagues to you.
Michael Romaszka, J.P. Morgan Securities
Thank you for your work on this 1031 exchange, I was pleased with the level of service.
Troy Foxworth, All County Property Management Pros
I must say I was at first concerned about using a Qualified Intermediary that I found online, but I did extensive due diligence to alleviate those concerns. The process was made simple and straightforward by Jerry and his team, the paperwork was provided promptly and every i was dotted and t crossed to ensure compliance. Everything was handled like clockwork – actually did back to back replacement property closings in 1.5 hrs in 2 different offices. I will without question be using them on the next 1031 exchange I handle.
Joseph Peter Cardinale, RealtyUSA
Wanted to reach out and say ‘thank you’ for all your outstanding work. It means the world to us that you were so comprehensive and also gave Sue and I the clarity necessary to make the right decision. Your attention to detail was very much appreciated and we would highly recommend you and your team to anyone.
Mike Martinovich, Flatiron Borman Management
I must commend you for the job that was performed in a professional and timely manner. I am a satisfied customer and I am happy to give you an excellent reference.