Qualified Intermediary referrals in NY!

[Luke Tetreault]

How’s it going! I have a house flip that will be ready in a couple of weeks and I would like to 1031 the proceeds of that into a bigger deal. This will be my first 1031 and I would like to find a recognized Qualified Intermediary to bounce questions off of and handle this deal. I have heard you have to be very careful when doing this, so I just want to stay on top of what needs to be done. I’m in Upstate New York. Thank you for any help!

[Dave Foster]

@Luke Tetreault, Most QIs will be nationwide providers as 1031 is a federal statute and practiced the same in all 50 states.  The one important factor is that they do need to be involved prior to the closing of the sale.  And your attorney (or the attorney closing the escrow of the sale) cannot be your QI.  They must be an unrelated 3rd party whose only job is the administration of the 1031. There's some good QIs on this site.  You can actually go to their profiles and read references from BP members.  And actually dialogue with those folks to get an idea of whether they're someone you can work with.

One thing that concerns me though is that you're calling this a "flip".  In order to be eligible for a 1031 exchange you must have owned the property with the intent of holding it for productive use.  If you bought it primarily to fix and then sell it does not qualify for a 1031 exchange.  You may want to address the intent question with any QI you're interviewing.