1031 Exchange suggestions?

[Sylvia Castellanos]

I will soon be selling some vacant lots that qualify for capital gains treatment. I would like to work with a 1031 Exchange organization to  plow the money back into new purchases within the 45 day time window. Can someone suggest a good 1031 Exchange organization to work with?

[Dave Foster]

@Sylvia Castellanos, Smart move to keep all of that money at work for you.  That's exactly what the 1031 will do for you as well as also indefinitely deferring any recapture of the depreciation benefit you've already taken.

Since 1031 is a federal statute it is performed the same in all states.  So, the location of your Qualified Intermediary isn't as important as their demonstrated expertise and fit with you.  Using a large QI firm can give you some economies of scale price wise.  But they may not be as responsive to your questions as you need.  A small firm can be very responsive.  But may not have the depth of experience to guide you in a situation.  And if they only do a few exchanges a year it's hard for them to give you economy of scale on pricing.  So, look for that "Goldilocks" QI - the one big enough to have good pricing and experience.  And small enough to be responsive when you need them.  The "just right" one.

There are a number of good QIs like right here on BP.  And the best thing about The BP platform is that you can go to a QIs profile and scroll down to the references section.  There you can not only read references.  You can interact with the actual poster to verify their experience.