Comments on: Selecting A Qualified Intermediary for a 1031 Exchange http://www.biggerpockets.com/renewsblog/2008/12/19/selecting-qualified-intermediary-1031-exchange/ Learn, Network, Invest Sun, 22 Nov 2009 23:13:19 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: James Brennan http://www.biggerpockets.com/renewsblog/2008/12/19/selecting-qualified-intermediary-1031-exchange/comment-page-1/#comment-66911 James Brennan Fri, 17 Jul 2009 01:18:42 +0000 http://www.biggerpockets.com/renewsblog/?p=2953#comment-66911 Dorothy: Great post! Our intermediary has had to adopt safety and security features after the "debacles" that shocked the industry the past 18 months. We let clients either select a bank of their choice for $1,250 to complete the exchange with a banker they have known for years, or for $750 we pay the client interest on their funds, establish a money market account, and let the clients utilize either the escrow division of Citigroup or Union Bank of California to micromonitor their segregated funds. For the ultraconservative we can have double signatures required so a taxpayer can demand signature in order to wire out of the money market. Dorothy:

Great post! Our intermediary has had to adopt safety and security features after the “debacles” that shocked the industry the past 18 months. We let clients either select a bank of their choice for $1,250 to complete the exchange with a banker they have known for years, or for $750 we pay the client interest on their funds, establish a money market account, and let the clients utilize either the escrow division of Citigroup or Union Bank of California to micromonitor their segregated funds. For the ultraconservative we can have double signatures required so a taxpayer can demand signature in order to wire out of the money market.

]]> By: Dorothy Zink http://www.biggerpockets.com/renewsblog/2008/12/19/selecting-qualified-intermediary-1031-exchange/comment-page-1/#comment-62892 Dorothy Zink Sat, 27 Dec 2008 19:44:03 +0000 http://www.biggerpockets.com/renewsblog/?p=2953#comment-62892 If you are planning to do a 1031 Exchange, please make sure to choose a qualified intermediary who provides transparency for the 1031 Exchange funds. Several qualified intermediaries have gone BK this year due to having invested the exchange funds poorly. Taxpayers lost their nesteggs and still owe the taxes! A good qualified intermediary opens a separate money market account for your exchange and you should receive the monthly statement from the depository bank. In the past, we all looked to make sure a qualified intermediary had a fidelity bond and E&O insurance. Those instruments do nothing to protect from exchange funds being foolishly invested. You need to be able to monitor your nest egg the entire time it is held by the qualified intermediary. If you are planning to do a 1031 Exchange, please make sure to choose a qualified intermediary who provides transparency for the 1031 Exchange funds. Several qualified intermediaries have gone BK this year due to having invested the exchange funds poorly. Taxpayers lost their nesteggs and still owe the taxes! A good qualified intermediary opens a separate money market account for your exchange and you should receive the monthly statement from the depository bank.

In the past, we all looked to make sure a qualified intermediary had a fidelity bond and E&O insurance. Those instruments do nothing to protect from exchange funds being foolishly invested. You need to be able to monitor your nest egg the entire time it is held by the qualified intermediary.

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