Looking for 1031 exchange company

9 Replies

Title and description say it all. I'm selling an investment property in Tacoma and I'm looking to move those funds to an exchange for another transaction. Can anyone give a recommendation to one, or several, companies I can call around to and check their fees/etc. Also, what are some things I should be asking when I call in? You don't know what you don't know, and this will be my first go. Thanks!

Bonus:  does the company need to be, or is it best to, be located in the general area of which I'm buying and selling?

@Jordan Sitzler I appreciate everyone's kind words.  And @George Pauley is right also - Starker is another good company.  Finding a good QI is a Goldlilocks experience.  Too small and you don't get experience or scale of cost.  Too big and you get economies of scale but a less responsive experience.  I wouldn't worry about location.  1031 is a federal statute so it's practiced the same everywhere.  And tons of exchanges start in one state and end in another so location really isn't that important.

What is important - 

1. Demonstrated experience. Literally anyone can cobble together some documents and be an intermediary.  You probably want to use a company that has a national footprint and thousands of exchanges under their belts.  There's intermediaries like us here on Bigger Pockets.  You can check their references on their profiles and actually correspond with folks they've worked with.

2. Protection of your funds - Even large trust accountants can be vulnerable.  You want funds segregated, in your name, and govt insured.

3. Availability to walk the entire journey with you.  1031 is as much strategy and matching the execution to the needs of the client.  And it's a nerve wracking experience for you.  So you probably want to have good access to the consultants above sales level.

4. Guarantee their work. E&O is a start but you also want a contractual guarantee of their work. No one can guarantee your exchange. But they can guarantee their work on your exchange.

I'll reach out via PM.

@Dave Foster , I value BP Forums recommendations very highly.  When I saw 2 quick responses with the same name, I almost didn't post about Starker.  But then reconsidered.  Starker had performed well for me and deserved a reference.

That said, I also realized that I used Starker because my CPA, who's a bit of an REI expert, recommended them. He had used them, and had clients that had used them, in the past and was used to working with them. This was a pretty big plus for me.

@Jordan Sitzler , do you have a tax person?  If so, maybe ask them who they recommend.  At a minimum, it's another recommendation.

@Jordan Sitzler I have just finished a very large (in my view) exchange acquiring 8 SFR. I worked with Exchange Resources Inc. and would be happy to introduce you to the team I worked with. It was very smooth and most importantly they helped me a lot to make sure all the rules, deadlines, etc. were kept and all payments for closing happened same day. I would immediately use them again.

@George Pauley Lol. Starker Is a fine company.  There’s a lot of good QIs out there. Established relationships speak a lot. 
I like me!  But sometimes my wife doesn’t :)