Secure Your 1031 Success with the Right Qualified Intermediary

Written By Lance Growth

A 1031 exchange offers incredible tax benefits for real estate investors—but only if the process is handled correctly. One of the most important parts of a successful exchange is working with a Qualified Intermediary (QI). The QI plays a critical role, and choosing the right one can make or break your transaction.

Why a Qualified Intermediary Is Essential

The IRS requires a QI to facilitate a 1031 exchange. This neutral third party:

  • Holds the sale proceeds to ensure you never take possession (which would trigger taxes)

  • Prepares necessary legal documents

  • Ensures the transaction complies with all IRS rules and deadlines

Without a QI, your transaction does not qualify as a 1031 exchange—meaning you could lose the tax deferral benefit.

How to Choose the Right QI

Not all QIs are created equal. Here’s what to look for:

  • Experience & Reputation: Choose a firm with a solid track record in 1031 exchanges and positive client feedback.

  • Security of Funds: Make sure they offer bonded and insured accounts to protect your proceeds.

  • Clear Communication: Your QI should be responsive, transparent, and easy to work with.

  • Compliance Knowledge: They must be up-to-date on current IRS rules and any legal changes.

A Qualified Intermediary isn’t just a formality—they're a vital part of the exchange process. Choosing a trustworthy and experienced QI helps ensure your 1031 exchange runs smoothly, meets all legal requirements, and ultimately protects your investment.

Looking to get started? Make your first smart move by partnering with us! Let’s start the conversation!

Lance Growth
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