Development

Category: QI Services

  • Find the Right Qualified Intermediary to Facilitate Your 1031 Exchange

    Find the Right Qualified Intermediary to Facilitate Your 1031 Exchange

    As with most service industries, not all Qualified Intermediaries (QIs) are created equal, nor do all QIs service their clients with the same standards and expectations in place. Below is a list of criteria you should evaluate prior to selecting a Qualified Intermediary to facilitate your 1031 exchange.

    Bigger Isn’t Always Better
    It is easy to assume that the largest company might be the best option, but that is seldom the case. We estimate that roughly 30% of the Live Chats we received through our website are from individuals and tax advisors that have a 1031 exchange open with a different QI but are unable to get in touch with them to answer their time sensitive questions in relation to their 1031 exchange, and so they reach out to us.
     
    Easy Accessibility
    Today’s consumer wants accessibility at their fingertips, and with today’s technology why shouldn’t they get it? When evaluating QI options, pay special attention to how easily you will be able to contact them in the future.
     

    Do they have a (800) number? Does a real person answer the call without you having to push several buttons to navigate an automated system? Will you have the ability to speak with an attorney, Certified Exchange Specialist®, or other subject matter expert regarding thorny situations?
     
    Do they have a live chat on their website, with a real specialist on the other end available to quickly answer your questions?
     

    QI Roster
    A QI is only as good as its employees. When researching your QI options, look into the breakdown of their internal team.
     

    Do they have on-staff attorneys specializing in 1031 Exchanges? Not all 1031 exchanges are cut and dry; some have complex aspects and nuances that require a specialized 1031 exchange attorney to ensure validity regarding IRC 1031. If the QI doesn’t have on-staff attorneys, you can expect delays and sometimes increased fees to bring in outside council.
     
    What is their largest department? If it is not the Service department, then you might infer service isn’t their priority. A QI set-up with an adequate service and processing team will be set-up for successfully processing 1031 exchanges.
     

    You Get What You Pay For
    As with most things, when it comes to a 1031 exchange, you get what you pay for. Pricing is often reflective of the level of personal attention you will receive throughout the process. Companies that offer the lowest price do so by offering minimal touchpoints with their clients, and often minimal experience among their staff. Their goal is quantity, not quality. Similarly, companies that offer flat-rate pricing are not considering the unique aspects that accompany most 1031 Exchanges. 1031 Exchanges are not one size fits all and therefore a flat-rate pricing model doesn’t work.

    If you are looking to start a 1031 Exchange, we encourage you to reach out to various QIs and then evaluate their overall service offerings. Ask yourself the following questions of each QI: Were they easy to get ahold of via phone, live chat, email? Did they offer 1031 Exchange information and answers without charge? Do they have sufficient expertise and servicing team members?
    At Accruit, we pride ourselves on providing the world class customer service with a consistent Net Promoter Score of over 80; we have received over 200 5-star Google reviews from our valued clients; and perhaps most telling, over 93% of our clients are repeat customers or direct referrals from other companies within the real estate industry. Additionally, Accruit has five on-staff attorneys that are 1031 exchange subject matter experts boosting over 100 years collective experience.
    If you have any questions or would like more information on our 1031 Exchange services, please reach out to us today!

  • Find the Right Qualified Intermediary to Facilitate Your 1031 Exchange

    Find the Right Qualified Intermediary to Facilitate Your 1031 Exchange

    As with most service industries, not all Qualified Intermediaries (QIs) are created equal, nor do all QIs service their clients with the same standards and expectations in place. Below is a list of criteria you should evaluate prior to selecting a Qualified Intermediary to facilitate your 1031 exchange.

    Bigger Isn’t Always Better
    It is easy to assume that the largest company might be the best option, but that is seldom the case. We estimate that roughly 30% of the Live Chats we received through our website are from individuals and tax advisors that have a 1031 exchange open with a different QI but are unable to get in touch with them to answer their time sensitive questions in relation to their 1031 exchange, and so they reach out to us.
     
    Easy Accessibility
    Today’s consumer wants accessibility at their fingertips, and with today’s technology why shouldn’t they get it? When evaluating QI options, pay special attention to how easily you will be able to contact them in the future.
     

    Do they have a (800) number? Does a real person answer the call without you having to push several buttons to navigate an automated system? Will you have the ability to speak with an attorney, Certified Exchange Specialist®, or other subject matter expert regarding thorny situations?
     
    Do they have a live chat on their website, with a real specialist on the other end available to quickly answer your questions?
     

    QI Roster
    A QI is only as good as its employees. When researching your QI options, look into the breakdown of their internal team.
     

    Do they have on-staff attorneys specializing in 1031 Exchanges? Not all 1031 exchanges are cut and dry; some have complex aspects and nuances that require a specialized 1031 exchange attorney to ensure validity regarding IRC 1031. If the QI doesn’t have on-staff attorneys, you can expect delays and sometimes increased fees to bring in outside council.
     
    What is their largest department? If it is not the Service department, then you might infer service isn’t their priority. A QI set-up with an adequate service and processing team will be set-up for successfully processing 1031 exchanges.
     

    You Get What You Pay For
    As with most things, when it comes to a 1031 exchange, you get what you pay for. Pricing is often reflective of the level of personal attention you will receive throughout the process. Companies that offer the lowest price do so by offering minimal touchpoints with their clients, and often minimal experience among their staff. Their goal is quantity, not quality. Similarly, companies that offer flat-rate pricing are not considering the unique aspects that accompany most 1031 Exchanges. 1031 Exchanges are not one size fits all and therefore a flat-rate pricing model doesn’t work.

    If you are looking to start a 1031 Exchange, we encourage you to reach out to various QIs and then evaluate their overall service offerings. Ask yourself the following questions of each QI: Were they easy to get ahold of via phone, live chat, email? Did they offer 1031 Exchange information and answers without charge? Do they have sufficient expertise and servicing team members?
    At Accruit, we pride ourselves on providing the world class customer service with a consistent Net Promoter Score of over 80; we have received over 200 5-star Google reviews from our valued clients; and perhaps most telling, over 93% of our clients are repeat customers or direct referrals from other companies within the real estate industry. Additionally, Accruit has five on-staff attorneys that are 1031 exchange subject matter experts boosting over 100 years collective experience.
    If you have any questions or would like more information on our 1031 Exchange services, please reach out to us today!

  • 1031 exchange tips: selecting the right QI

    In 2021, over 20% of commercial real estate participated in 1031 Exchanges and commercial property sales nearly doubled 2020’s totals. Real estate investors aren’t anticipating a slow down for 2022, this means another big year for 1031 exchanges. Given these projections, it is important to remember that choosing the right Qualified Intermediary to help you process your tax deferred exchange is crucial. Read through the tips below on choosing the right team to help you process your 1031 Exchange. 
    Choosing a Qualified Intermediary (QI) is an important decision, and as such, the process shouldn’t be taken lightly. After all, your QI will be guiding you through a maze of federal and state requirements as well as safeguarding the proceeds from the sale of your relinquished property. Given the potential tax consequences involved with an improperly structured exchange and the safety issues related to your proceeds, a true due diligence approach should be taken before committing to a QI.

    To begin, let’s take a quick look at some of the QI’s responsibilities:

    Structuring the exchange
    Preparing the related documentation
    Safeguarding proceeds from the sale of the relinquished property(s)
    Continuous monitoring and advising to ensure compliance with federal and state 1031 and QI requirements

    It’s important to note that there is currently no federal regulation of qualified intermediaries. However, with the help of the Federation of Exchange Accommodators (FEA), a number of states have begun taking the lead in assuring higher professional standards for QIs. Some of the newly enacted requirements (which can vary from state to state) include:

    Qualified escrow and/or trust accounts for client funds
    Minimum bond and insurance requirements
    Fund withdrawal authorization requirements
    Registration and licensing requirements for QIs
    Investment limitations on exchange proceeds

    These are just some of the new state level regulatory requirements for QIs, and Accruit has taken a leadership role in making sure that legislators are fully informed in order to properly protect exchangers. However, our responsibility to inform doesn’t stop there. It also includes educating the marketplace to ensure the right due diligence is performed prior to choosing a QI. Items we advise businesses to research include:

    The QI’s technical expertise and experience
    Banking processes and guidelines
    Certified Exchange Specialist® (CES®) on staff
    Quality control
    Insurance and bonding coverage
    Employee recruitment (including background checks with continuous monitoring)
    Membership in the FEA
    Applicability and QI’s status related to relevant state regulatory requirements
    References

    This article is merely intended to start a discussion regarding the importance of choosing the right QI. In practical terms, the process should be far more in-depth and you should include a trusted tax advisor as part of your decision team.
    If you’d like more information on selecting a QI, please contact us. We can help you understand the entire process and we’re glad to connect you with helpful resources in the tax industry and at the FEA.
     
    Updated 2.08.2022.

  • 1031 exchange tips: selecting the right QI

    In 2021, over 20% of commercial real estate participated in 1031 Exchanges and commercial property sales nearly doubled 2020’s totals. Real estate investors aren’t anticipating a slow down for 2022, this means another big year for 1031 exchanges. Given these projections, it is important to remember that choosing the right Qualified Intermediary to help you process your tax deferred exchange is crucial. Read through the tips below on choosing the right team to help you process your 1031 Exchange. 
    Choosing a Qualified Intermediary (QI) is an important decision, and as such, the process shouldn’t be taken lightly. After all, your QI will be guiding you through a maze of federal and state requirements as well as safeguarding the proceeds from the sale of your relinquished property. Given the potential tax consequences involved with an improperly structured exchange and the safety issues related to your proceeds, a true due diligence approach should be taken before committing to a QI.

    To begin, let’s take a quick look at some of the QI’s responsibilities:

    Structuring the exchange
    Preparing the related documentation
    Safeguarding proceeds from the sale of the relinquished property(s)
    Continuous monitoring and advising to ensure compliance with federal and state 1031 and QI requirements

    It’s important to note that there is currently no federal regulation of qualified intermediaries. However, with the help of the Federation of Exchange Accommodators (FEA), a number of states have begun taking the lead in assuring higher professional standards for QIs. Some of the newly enacted requirements (which can vary from state to state) include:

    Qualified escrow and/or trust accounts for client funds
    Minimum bond and insurance requirements
    Fund withdrawal authorization requirements
    Registration and licensing requirements for QIs
    Investment limitations on exchange proceeds

    These are just some of the new state level regulatory requirements for QIs, and Accruit has taken a leadership role in making sure that legislators are fully informed in order to properly protect exchangers. However, our responsibility to inform doesn’t stop there. It also includes educating the marketplace to ensure the right due diligence is performed prior to choosing a QI. Items we advise businesses to research include:

    The QI’s technical expertise and experience
    Banking processes and guidelines
    Certified Exchange Specialist® (CES®) on staff
    Quality control
    Insurance and bonding coverage
    Employee recruitment (including background checks with continuous monitoring)
    Membership in the FEA
    Applicability and QI’s status related to relevant state regulatory requirements
    References

    This article is merely intended to start a discussion regarding the importance of choosing the right QI. In practical terms, the process should be far more in-depth and you should include a trusted tax advisor as part of your decision team.
    If you’d like more information on selecting a QI, please contact us. We can help you understand the entire process and we’re glad to connect you with helpful resources in the tax industry and at the FEA.
     
    Updated 2.08.2022.

  • 1031 exchange tips: selecting the right QI

    In 2021, over 20% of commercial real estate participated in 1031 Exchanges and commercial property sales nearly doubled 2020’s totals. Real estate investors aren’t anticipating a slow down for 2022, this means another big year for 1031 exchanges. Given these projections, it is important to remember that choosing the right Qualified Intermediary to help you process your tax deferred exchange is crucial. Read through the tips below on choosing the right team to help you process your 1031 Exchange. 
    Choosing a Qualified Intermediary (QI) is an important decision, and as such, the process shouldn’t be taken lightly. After all, your QI will be guiding you through a maze of federal and state requirements as well as safeguarding the proceeds from the sale of your relinquished property. Given the potential tax consequences involved with an improperly structured exchange and the safety issues related to your proceeds, a true due diligence approach should be taken before committing to a QI.

    To begin, let’s take a quick look at some of the QI’s responsibilities:

    Structuring the exchange
    Preparing the related documentation
    Safeguarding proceeds from the sale of the relinquished property(s)
    Continuous monitoring and advising to ensure compliance with federal and state 1031 and QI requirements

    It’s important to note that there is currently no federal regulation of qualified intermediaries. However, with the help of the Federation of Exchange Accommodators (FEA), a number of states have begun taking the lead in assuring higher professional standards for QIs. Some of the newly enacted requirements (which can vary from state to state) include:

    Qualified escrow and/or trust accounts for client funds
    Minimum bond and insurance requirements
    Fund withdrawal authorization requirements
    Registration and licensing requirements for QIs
    Investment limitations on exchange proceeds

    These are just some of the new state level regulatory requirements for QIs, and Accruit has taken a leadership role in making sure that legislators are fully informed in order to properly protect exchangers. However, our responsibility to inform doesn’t stop there. It also includes educating the marketplace to ensure the right due diligence is performed prior to choosing a QI. Items we advise businesses to research include:

    The QI’s technical expertise and experience
    Banking processes and guidelines
    Certified Exchange Specialist® (CES®) on staff
    Quality control
    Insurance and bonding coverage
    Employee recruitment (including background checks with continuous monitoring)
    Membership in the FEA
    Applicability and QI’s status related to relevant state regulatory requirements
    References

    This article is merely intended to start a discussion regarding the importance of choosing the right QI. In practical terms, the process should be far more in-depth and you should include a trusted tax advisor as part of your decision team.
    If you’d like more information on selecting a QI, please contact us. We can help you understand the entire process and we’re glad to connect you with helpful resources in the tax industry and at the FEA.
     
    Updated 2.08.2022.

  • Don’t Select Just Any QI, Here’s How to Choose the Right One

    Choosing a local Qualified Intermediary (QI) is an important decision, and as such, the process shouldn’t be taken lightly. After all, your QI will be guiding you through a maze of federal and state requirements as well as safeguarding the proceeds from the sale of your relinquished property. Given the potential tax consequences involved with an improperly structured exchange and the safety issues related to your proceeds, a true due diligence approach should be taken before committing to a QI.
    To begin, let’s take a quick look at some of the QI’s responsibilities:

    Structuring the exchange
    Preparing the related documentation
    Safeguarding proceeds from the sale of the relinquished property(s)
    Continuous monitoring and advising to ensure compliance with federal and state 1031 and QI requirements

    It’s important to note that there is currently no federal regulation of qualified intermediaries. However, with the help of the Federation of Exchange Accommodators (FEA), a number of states, including Colorado, have begun taking the lead in assuring higher professional standards for QIs. Some of the newly enacted requirements (which can vary from state to state) include:

    Qualified escrow and/or trust accounts for client funds
    Minimum bond and insurance requirements
    Fund withdrawal authorization requirements
    Registration and licensing requirements for QIs
    Investment limitations on exchange proceeds

    These are just some of the new state level regulatory requirements for QIs, and Accruit has taken a leadership role in making sure that legislators are fully informed in order to properly protect exchangers. However, our responsibility to inform doesn’t stop there. It also includes educating the marketplace to ensure the right due diligence is performed prior to choosing a QI. Items we advise businesses to research include:

    The QI’s technical expertise and experience
    Banking processes and guidelines
    Certified Exchange Specialist® (CES®) on staff
    Quality control
    Insurance and bonding coverage
    Employee recruitment (including background checks with continuous monitoring)
    Membership in the FEA
    Applicability and QI’s status related to relevant state regulatory requirements
    References

    This article is merely intended to start a discussion regarding the importance of choosing the right QI locally. In practical terms, the process should be far more in-depth and you should include a trusted tax advisor as part of your decision team.
    Working with an independent Qualified Intermediary provides benefits you may not have considered. Learn why working with Accruit is different than QI’s who are a part of a larger entity. 

    https://js.hscta.net/cta/current.js”> hbspt.cta.load(6205670, ’41c260a7-a37c-4ff2-a7a7-f7e36768feb6′, {“useNewLoader”:”true”,”region”:”na1″});
     
     

  • Don’t Select Just Any QI, Here’s How to Choose the Right One

    Choosing a local Qualified Intermediary (QI) is an important decision, and as such, the process shouldn’t be taken lightly. After all, your QI will be guiding you through a maze of federal and state requirements as well as safeguarding the proceeds from the sale of your relinquished property. Given the potential tax consequences involved with an improperly structured exchange and the safety issues related to your proceeds, a true due diligence approach should be taken before committing to a QI.
    To begin, let’s take a quick look at some of the QI’s responsibilities:

    Structuring the exchange
    Preparing the related documentation
    Safeguarding proceeds from the sale of the relinquished property(s)
    Continuous monitoring and advising to ensure compliance with federal and state 1031 and QI requirements

    It’s important to note that there is currently no federal regulation of qualified intermediaries. However, with the help of the Federation of Exchange Accommodators (FEA), a number of states, including Colorado, have begun taking the lead in assuring higher professional standards for QIs. Some of the newly enacted requirements (which can vary from state to state) include:

    Qualified escrow and/or trust accounts for client funds
    Minimum bond and insurance requirements
    Fund withdrawal authorization requirements
    Registration and licensing requirements for QIs
    Investment limitations on exchange proceeds

    These are just some of the new state level regulatory requirements for QIs, and Accruit has taken a leadership role in making sure that legislators are fully informed in order to properly protect exchangers. However, our responsibility to inform doesn’t stop there. It also includes educating the marketplace to ensure the right due diligence is performed prior to choosing a QI. Items we advise businesses to research include:

    The QI’s technical expertise and experience
    Banking processes and guidelines
    Certified Exchange Specialist® (CES®) on staff
    Quality control
    Insurance and bonding coverage
    Employee recruitment (including background checks with continuous monitoring)
    Membership in the FEA
    Applicability and QI’s status related to relevant state regulatory requirements
    References

    This article is merely intended to start a discussion regarding the importance of choosing the right QI locally. In practical terms, the process should be far more in-depth and you should include a trusted tax advisor as part of your decision team.
    Working with an independent Qualified Intermediary provides benefits you may not have considered. Learn why working with Accruit is different than QI’s who are a part of a larger entity. 

    https://js.hscta.net/cta/current.js”> hbspt.cta.load(6205670, ’41c260a7-a37c-4ff2-a7a7-f7e36768feb6′, {“useNewLoader”:”true”,”region”:”na1″});
     
     

  • Don’t Select Just Any QI, Here’s How to Choose the Right One

    Choosing a local Qualified Intermediary (QI) is an important decision, and as such, the process shouldn’t be taken lightly. After all, your QI will be guiding you through a maze of federal and state requirements as well as safeguarding the proceeds from the sale of your relinquished property. Given the potential tax consequences involved with an improperly structured exchange and the safety issues related to your proceeds, a true due diligence approach should be taken before committing to a QI.
    To begin, let’s take a quick look at some of the QI’s responsibilities:

    Structuring the exchange
    Preparing the related documentation
    Safeguarding proceeds from the sale of the relinquished property(s)
    Continuous monitoring and advising to ensure compliance with federal and state 1031 and QI requirements

    It’s important to note that there is currently no federal regulation of qualified intermediaries. However, with the help of the Federation of Exchange Accommodators (FEA), a number of states, including Colorado, have begun taking the lead in assuring higher professional standards for QIs. Some of the newly enacted requirements (which can vary from state to state) include:

    Qualified escrow and/or trust accounts for client funds
    Minimum bond and insurance requirements
    Fund withdrawal authorization requirements
    Registration and licensing requirements for QIs
    Investment limitations on exchange proceeds

    These are just some of the new state level regulatory requirements for QIs, and Accruit has taken a leadership role in making sure that legislators are fully informed in order to properly protect exchangers. However, our responsibility to inform doesn’t stop there. It also includes educating the marketplace to ensure the right due diligence is performed prior to choosing a QI. Items we advise businesses to research include:

    The QI’s technical expertise and experience
    Banking processes and guidelines
    Certified Exchange Specialist® (CES®) on staff
    Quality control
    Insurance and bonding coverage
    Employee recruitment (including background checks with continuous monitoring)
    Membership in the FEA
    Applicability and QI’s status related to relevant state regulatory requirements
    References

    This article is merely intended to start a discussion regarding the importance of choosing the right QI locally. In practical terms, the process should be far more in-depth and you should include a trusted tax advisor as part of your decision team.
    Working with an independent Qualified Intermediary provides benefits you may not have considered. Learn why working with Accruit is different than QI’s who are a part of a larger entity. 

    https://js.hscta.net/cta/current.js”> hbspt.cta.load(6205670, ’41c260a7-a37c-4ff2-a7a7-f7e36768feb6′, {“useNewLoader”:”true”,”region”:”na1″});
     
     

  • Five Reasons to Utilize a Qualified Intermediary in a 1031 Exchange

    Most savvy investors understand the importance of a sound tax strategy when making an investment decision. Therefore, it is no wonder that utilizing a like-kind exchange (LKE) when buying or selling real estate, or other business use assets, remains a primary wealth and tax strategy amongst investors both large and small.  Unfortunately, many investors are blindly allocating the responsibility of managing their 1031 exchange to a local attorney, CPA, or banker.
    So why could this be a mistake? Think of it like this; would you go to a local commercial real estate broker and ask them for advice on purchasing your next home? Probably not, because while they know and understand the market and real estate, they don’t know the residential market. A commercial broker will not have any familiarity of all the critical issues related to residential transactions – issues like what neighborhoods are booming, ideal size and floorplan for certain size of family, what areas have strong school districts, proximity to public transportation, etc.  
    Similarly, if you are looking to utilize a tax strategy like a 1031 exchange that needs to follow very strict set of guidelines why put your money in the hands of someone who may not understand its intricacies. Here are a few of the numerous reasons for engaging a qualified intermediary (QI) when conducting a 1031 exchange:

    A qualified intermediary’s involvement with the Federation of Exchange Accommodators (FEA), the industry trade association for QIs, keeps them up-to-date on issues that may impact your exchange.
    The FEA recommends that QIs hold a Fidelity Bond and Errors & Omission Insurance.
    Many states have specific regulatory requirements targeting LKEs, and QIs are up-to-date on all state requirements.
    QIs will utilize segregated commercial accounts, qualified trust accounts and/or escrow accounts, offering multiple security measures to safeguard the taxpayer’s funds.
    Sophisticated QIs will have the capability to understand, handle, and process all kinds of exchanges, including forward, reverse, built-to-suit, and improvement exchanges.

    The above list indicates many great reasons to use an experienced QI for a 1031 exchange. However, not all QIs are created equal, and it’s important that, when setting out to conduct a 1031 exchange, one exercises due diligence in researching your qualified intermediary. The above list can provide pertinent questions to ask during the process.

  • Five Reasons to Utilize a Qualified Intermediary in a 1031 Exchange

    Most savvy investors understand the importance of a sound tax strategy when making an investment decision. Therefore, it is no wonder that utilizing a like-kind exchange (LKE) when buying or selling real estate, or other business use assets, remains a primary wealth and tax strategy amongst investors both large and small.  Unfortunately, many investors are blindly allocating the responsibility of managing their 1031 exchange to a local attorney, CPA, or banker.
    So why could this be a mistake? Think of it like this; would you go to a local commercial real estate broker and ask them for advice on purchasing your next home? Probably not, because while they know and understand the market and real estate, they don’t know the residential market. A commercial broker will not have any familiarity of all the critical issues related to residential transactions – issues like what neighborhoods are booming, ideal size and floorplan for certain size of family, what areas have strong school districts, proximity to public transportation, etc.  
    Similarly, if you are looking to utilize a tax strategy like a 1031 exchange that needs to follow very strict set of guidelines why put your money in the hands of someone who may not understand its intricacies. Here are a few of the numerous reasons for engaging a qualified intermediary (QI) when conducting a 1031 exchange:

    A qualified intermediary’s involvement with the Federation of Exchange Accommodators (FEA), the industry trade association for QIs, keeps them up-to-date on issues that may impact your exchange.
    The FEA recommends that QIs hold a Fidelity Bond and Errors & Omission Insurance.
    Many states have specific regulatory requirements targeting LKEs, and QIs are up-to-date on all state requirements.
    QIs will utilize segregated commercial accounts, qualified trust accounts and/or escrow accounts, offering multiple security measures to safeguard the taxpayer’s funds.
    Sophisticated QIs will have the capability to understand, handle, and process all kinds of exchanges, including forward, reverse, built-to-suit, and improvement exchanges.

    The above list indicates many great reasons to use an experienced QI for a 1031 exchange. However, not all QIs are created equal, and it’s important that, when setting out to conduct a 1031 exchange, one exercises due diligence in researching your qualified intermediary. The above list can provide pertinent questions to ask during the process.