Who is a Qualified Intermediary?
Being an investor yourself, you may be aware of Section 1031 of IRC that allows investors to defer capital gains tax on exchanging an investment property for another like-kind property. However, what you should not forget is that 1031 exchanges aren’t possible without the involvement of Qualified Intermediaries. Yes, that’s correct. It’s mandatory to involve a Qualified Intermediary in every single 1031 exchange.
A Qualified Intermediary is generally an individual responsible for handling 1031 exchanges on behalf of investors. From finding a buyer for your relinquished property to locating a potential replacement property and then acquiring it, everything is done by the Qualified Intermediary.
Role of a 1031 Qualified Intermediary
The importance of a 1031 Qualified Intermediary exchanges can be estimated from the fact that a 1031 exchange is impossible without their participation. The reason why Qualified Intermediaries can’t be separated from 1031 exchanges is that there are handsome chances of investors not getting appropriate replacement properties within the limited time. Therefore, the involvement of a Qualified Intermediaries ensures that the exchange will complete within the given deadlines. As a Qualified Intermediary’s job requires experience and knowledge of the real estate market, it’s important not to rush to a decision while choosing a 1031 Qualified Intermediaries.
What You Should Look in a 1031 Qualified Intermediary Exchanges?
- Real estate market is all about contacts. The reason is obvious, finding an ideal property under limited budget and time is an art that not everyone is the master of it. A good Qualified Intermediary is likely to have lots and lots of contacts. So, the problem of finding a replacement property within 45 days is solved the moment you enter a Qualified Intermediary’s office.
- An experienced individual is certainly a better choice for the role of a Qualified Intermediary than some newcomers. Things, like a person’s experience, number of 1031 exchanges they have been a part of, etc. should be checked properly before finalizing a Qualified Intermediary. Individuals with less than 6 years of experience shouldn’t be in your list.
As you can see, Qualified Intermediaries play a vital role in 1031 exchanges. That’s why it’s important that you consult a highly experienced QI for your 1031 exchange. But before you proceed, you must know how you can reach to best Qualified Intermediaries present in the market? For that, you may need the assistance of a 1031 exchange advisor or expert, and we can help you with that. We, at www.triplenetproperty.com, can match you with up to three highly qualified 1031 exchange experts and one out of them will help you in finding the best QI for your 1031 exchange.
For consultation and assistance regarding qualified intermediary benefits & NNN properties, you can call 888-993-2835 or contact one of our advisors to know more about NNN properties. You can also email us at firstname.lastname@example.org.