I was reading an entry on Realty Times this morning that related to a topic that came up in a seminar we hosted a couple of weeks ago on 1031 exchanges. I found the title interesting "What to look for in a 1031 Exchange Facilitator but the content lacking or unclear.

So here are some points that I jotted down from our seminar.

1) Ask how many transactions the company carries out a week, a month etc?

2) How big is the company you are dealing with, how many signatures are needed for a transaction, is the money guarenteed, how safe in other words is your money?

3) Is the facilitator a member of any organization or carry any designation, such as Certified Exchange Specialist?

4) Can they easily and simply explain the rules of a 1031 exchange to you and how are they going to make sure you abide by the deadlines? Do you have legal staff on hand?

5) Can they carry out exchanges in all 50 states or at least in the sates that may affect you? One of the main reasons for using a 1031 is to invest in property close to where you live; if you are thinking of moving states you want a company that can handle the transaction simply and easily in both states.

What does not seem so important, but you should know is how much are they charging you? Most transactions can be completed for under a $1,000, often for about $750. Considering how much taxes you are going to be saving this is a relatively small sum.

If you have any further questions please call or email me.