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1031exchange help and advice needed
Good evening, I am negotiating a purchase and a big part of my offer is to help the buyers with the process of a 1031 exchange. I'd like to know what are the typical fees involved in this process to see if I can make that part of my offer, and if anyone recommends a company they've used before.
New to the BP community and looking forward to it. Thanks
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- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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@Juan Flores Ah now it makes sense. I was scratching my head as well. @Stone Jin got you in the ball park. Here's a BP blog we did as an industry analysis/overview on fees that may help - https://www.biggerpockets.com/blog/how-much-does-a....
Most QIs put the fees onto the settlement statement as a cost of the sale. So it's actually pretty savvy of you to be thinking about that as part of your offer. Ultimately it won't have real impact on them if they complete their 1031. If you offer more to offset the cost of the exchange it increases their net sale price which is good for them. But thy have to then purchase even more replacement real estate to accommodate the net selling price which they may not want to do (it's not much but they may have another property already in mind).
But I really like the perception you'd be creating just in opening up a discussion with them to let them know you're sympathetic and wanting to help them as best you can. Even if there's nothing you can do to improve their 1031 situation you'll get miles with that kind of win-win thinking.
In your situation the absolute best thing you can do to help someone wanting to do a 1031 exchange is to offer them a floating or extended closing date so they can find and get their replacement property under contract. That's a huge gift to a 1031 exchanger. Well that and introducing them to a good QI :)
- Dave Foster
