Looking for a Qualified Intermediary

1031 Exchanges
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Looking for a Qualified Intermediary

Peter Clapham
Rental Property Investor · Tavares, FL · Member since 2017 · 21 posts · 5 votes

Howdy,

I'm selling a rental property in Montana and will buy a replacement in California or Florida and am looking for recommendations from the field. I haven't done a 1031 in 20 years. Thanks in advance!

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Dave FosterBusiness Member
Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
8h

@Peter Clapham, well, not much has changed in 20 years other than the restriction of 1031 to real estate only in 2017. So you haven't missed much. But what is evolving is the number of exit and intermediate strategies as lending, retirement planning, and available product has evolved. A good QI can be an invaluable guide if they'll interact with you on the strategic side, and not just act as an order fulfiller.

You'll find a number of good QIs who are regulars here on BP. If you go to an individual's profile it will show you reviews from other BP members. That will get you a broader idea of their philosophy and personality and the ability to actually interface with actual users. The process itself has become very codified and boiler plate over the years as case and statute law have grown. But there are more possibilities inside the statute than most think.

The 1031 Investor5137 Reviews
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  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    8h

    @Peter Clapham, well, not much has changed in 20 years other than the restriction of 1031 to real estate only in 2017. So you haven't missed much. But what is evolving is the number of exit and intermediate strategies as lending, retirement planning, and available product has evolved. A good QI can be an invaluable guide if they'll interact with you on the strategic side, and not just act as an order fulfiller.

    You'll find a number of good QIs who are regulars here on BP. If you go to an individual's profile it will show you reviews from other BP members. That will get you a broader idea of their philosophy and personality and the ability to actually interface with actual users. The process itself has become very codified and boiler plate over the years as case and statute law have grown. But there are more possibilities inside the statute than most think.

    The 1031 Investor5137 Reviews
    WebsiteView Page
    2Reply
    • Peter Clapham
      OP
      Rental Property Investor · Tavares, FL · Member since 2017 · 21 posts · 5 votes
      8h

      Thank you.

      0Reply
  • Ametria Chaney
    Realtor · Memphis, Shelby County · Member since 2026 · 58 posts · 13 votes
    8h

    Peter, the QI choice matters more than people think — this is the person holding your funds between sale and purchase, so vet like it. Ask any QI: how are exchange funds held (segregated accounts?), what's their errors-and-omissions coverage, and how many exchanges have they handled in the last year. Red flag if they can't answer quickly. Timing note from the transaction side: you have 45 days to identify and 180 days to close from the sale, and the clock is unforgiving — line up your replacement market (CA/FL) research BEFORE you close the MT sale. Also confirm with a 1031-savvy CPA how depreciation recapture and state tax differences play between MT, CA, and FL. Have you already started touring replacement options?

    0Reply
    • Peter Clapham
      OP
      Rental Property Investor · Tavares, FL · Member since 2017 · 21 posts · 5 votes
      8h

      I have identified several replacement properties. Montana gets listed next week.

      0Reply
  • Matthew MorrowBusiness Member
    Investor · PA - NY - NJ · Member since 2019 · 655 posts · 225 votes
    6h

    Highly recommend @Dave Foster . We've sent several people his way and they all have been super happy.

    [email protected]484-791-6200
    CORE Team | Realty ONE Group Supreme547 Reviews
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    1Reply
    • Peter Clapham
      OP
      Rental Property Investor · Tavares, FL · Member since 2017 · 21 posts · 5 votes
      6h

      Thanks! I really appreciate the recommendation.

      0Reply
  • Hossein Sharifi
    Investor · Member since 2023 · 108 posts · 51 votes
    1h

    @Peter Clapham One change since your last exchange: since 2018, 1031 only covers real property, so furniture or equipment sold with the rental doesn't qualify.

    When you interview QIs, ask how funds are held (a separate qualified escrow or trust account, not pooled), and get their fidelity bond and E&O coverage in writing. Fees for a standard delayed exchange usually run from the high hundreds to the low thousands.

    The big one: the QI has to be engaged and the exchange agreement signed before the Montana sale closes. If proceeds hit your account, it's over. Then you have 45 days to identify and 180 days to close.

    Montana is also one of the few states that tracks deferred gain when the replacement is out of state, so ask your CPA about Montana's filing requirement.

    1Reply
  • Peter Clapham
    OP
    Rental Property Investor · Tavares, FL · Member since 2017 · 21 posts · 5 votes
    1h

    Thanks for the advice!

    0Reply
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