Deferred as QI?
Most Popular Reply
Pasadena, CA · Member since 2019 · 136 posts · 148 votes
6moI’ve had real-world experience working with them and they’ve been solid in my view.
Big things I look for with a QI are responsiveness, clarity during the 45-day ID period, security of funds, and how they handle edge cases, and they’ve checked those boxes for me. I wouldn’t hesitate to include them in your interview shortlist.
13 Replies
- Pasadena, CA · Member since 2019 · 136 posts · 148 votes6mo
I’ve had real-world experience working with them and they’ve been solid in my view.
Big things I look for with a QI are responsiveness, clarity during the 45-day ID period, security of funds, and how they handle edge cases, and they’ve checked those boxes for me. I wouldn’t hesitate to include them in your interview shortlist.
- 6moDave FosterBusiness MemberQualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
@Peter Lee, they're making money some way. Not trying to spread fear anywhere. But, in 25 years, I've never seen a QI go off the rails unless they were using the 1031 account to make money for themselves. It's not wrong, just human. The temptation to maximize income gets stronger when it's not your money. Their risk tolerance with your money can easily get out of whack. Large risk?? Not at all. But it's something to think about.
The 1031 Investor5140 Reviews Peter. I saw @Dave Foster on BP for years before I used him for my 1031. Let me tell you. It’s still scary having a “stranger” hold several hundred thousand of your dollars. I don’t know anything about the QI you mentioned but…
If you told me you gave a website a few hundred thousand and it “went away” and you were suddenly wondering who to contact as you can’t reach them. Would that be devastating? You’re talking about less than $1,000.
I guess I would ask them how they’re paying their bills and their employees. Because you’re choosing the companies involved in closing they shouldn’t be earning a commission from them. Try asking them a boatload of questions see if they know the answer and give it to you quickly. Good luck.
- 6moDave FosterBusiness MemberQualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
@Daniel Osman, kind words! Thank you. And couldn't agree with you more - Ask a lot of questions and do a lot of due diligence @Peter Lee. You'll find the perfect fit - and sleep at night. The first 1031 exchange you do should be the hardest :)
The 1031 Investor5140 Reviews - CPA · Miami, FL · Member since 2015 · 134 posts · 83 votes6mo
A “no‑fee” qualified intermediary is definitely unusual, so it makes sense to look closely at how they’re structuring their service. Most reputable QIs charge something because they’re taking on real liability, handling escrowed funds, and providing compliance documentation.
A few things you may want to verify with Deferred.com (or any QI):
- How they’re able to offer no‑fee exchanges: is the cost built into the escrow, interest spread, or a required add‑on service
- Where the exchange funds are held and whether they’re in a segregated account
- Bonding and insurance: reputable QIs typically carry fidelity bonds and E&O coverage
- Whether they provide written exchange agreements that meet IRS safe‑harbor requirements
- How long they’ve been in business and who the actual custodian of funds is
As for finding a QI, most investors get referrals from:
- Their CPA or tax attorney
- A title company
- A local real estate attorney
- Other investors who’ve completed exchanges
The QI does not need to be located in the same state as either property. You can use a QI based anywhere in the U.S. as long as they follow IRS rules.
If you want, I can help you draft a list of due‑diligence questions to send them or compare a few QIs side‑by‑side so you feel confident before choosing one.
Quote from @Ana Garcia:
A “no‑fee” qualified intermediary is definitely unusual, so it makes sense to look closely at how they’re structuring their service. Most reputable QIs charge something because they’re taking on real liability, handling escrowed funds, and providing compliance documentation.
A few things you may want to verify with Deferred.com (or any QI):
- How they’re able to offer no‑fee exchanges: is the cost built into the escrow, interest spread, or a required add‑on service
- Where the exchange funds are held and whether they’re in a segregated account
- Bonding and insurance: reputable QIs typically carry fidelity bonds and E&O coverage
- Whether they provide written exchange agreements that meet IRS safe‑harbor requirements
- How long they’ve been in business and who the actual custodian of funds is
As for finding a QI, most investors get referrals from:
- Their CPA or tax attorney
- A title company
- A local real estate attorney
- Other investors who’ve completed exchanges
The QI does not need to be located in the same state as either property. You can use a QI based anywhere in the U.S. as long as they follow IRS rules.
If you want, I can help you draft a list of due‑diligence questions to send them or compare a few QIs side‑by‑side so you feel
@Ana Garcia I agree and am also suspicious about how they can be free. They must get themselves paid somehow.
If you have a list of due diligence question, would you share it with me? Thank you!
- CPA · Miami, FL · Member since 2015 · 134 posts · 83 votes6mo
Quote from @Peter Lee:
Quote from @Ana Garcia:
A “no‑fee” qualified intermediary is definitely unusual, so it makes sense to look closely at how they’re structuring their service. Most reputable QIs charge something because they’re taking on real liability, handling escrowed funds, and providing compliance documentation.
A few things you may want to verify with Deferred.com (or any QI):
- How they’re able to offer no‑fee exchanges: is the cost built into the escrow, interest spread, or a required add‑on service
- Where the exchange funds are held and whether they’re in a segregated account
- Bonding and insurance: reputable QIs typically carry fidelity bonds and E&O coverage
- Whether they provide written exchange agreements that meet IRS safe‑harbor requirements
- How long they’ve been in business and who the actual custodian of funds is
As for finding a QI, most investors get referrals from:
- Their CPA or tax attorney
- A title company
- A local real estate attorney
- Other investors who’ve completed exchanges
The QI does not need to be located in the same state as either property. You can use a QI based anywhere in the U.S. as long as they follow IRS rules.
If you want, I can help you draft a list of due‑diligence questions to send them or compare a few QIs side‑by‑side so you feel
@Ana Garcia I agree and am also suspicious about how they can be free. They must get themselves paid somehow.
If you have a list of due diligence question, would you share it with me? Thank you!
Here are some due‑diligence questions you can use when evaluating any QI. These help you understand how they operate and where the risks are:
1. How do you offer a “no‑fee” exchange?
2. Where will my exchange funds be held? Confirm whether the account is segregated or commingled.
3. Who is the actual custodian of the funds? Some QIs outsource custody to a bank or trust company, you want to know exactly who holds the money.
4. What bonding and insurance do you carry? Reputable QIs typically have: Fidelity bond, Errors & Omissions (E&O) insurance, Cybersecurity coverage
5. How long have you been in business, and who owns the company?
6. Can you provide a sample exchange agreement? You want to see whether it follows IRS safe‑harbor requirements and clearly outlines responsibilities.
7. Do you provide written timelines and guidance during the 45‑day and 180‑day periods?
8. Are there any fees at any stage — wire fees, document fees, interest spreads, or partner fees?
9. Do you have references from recent clients?
10. Are you compliant with state‑level trust requirements?
Thank you for all your responses. Very appreciate it indeed!
Like @Bill B. said, the most important question to me is how I can trust this QI to hold my money. No matter it's online or in a physical office. My relinquished property is not in my city. So even if I use a QI with an office, I probably still wouldn't be able to see him/her.
Sounds like referral may be the only reliable way ...
Thank you @Ana Garcia
this is very helpful!
- 4moMatthew ColePro MemberSan Jose, CA · Member since 2011 · 1 post · 0 votes
@Peter Lee, I'm looking at deferred.com too. Did you end up going with them?
@Matthew Cole I was busy other things and have not contact them.
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