How to Choose the Best 1031 Exchange Advisor
A 1031 exchange is a complex transaction that requires coordination between multiple specialists. Choosing the right advisors makes the difference between a smooth, tax-optimized transaction and a costly mistake.
Who You Need on Your 1031 Team
- CRE Broker: Finds and markets your relinquished property; identifies replacement property options
- Qualified Intermediary (QI): Holds exchange funds and manages compliance with IRS requirements
- CPA/Tax Attorney: Advises on tax implications, boot calculations, and overall exchange strategy
- Real Estate Attorney: Reviews purchase and sale agreements and exchange documentation
What to Look for in a 1031 Broker
- Proven track record of successfully completed exchanges in your market
- Deep knowledge of both selling and buying side of multifamily in your target submarkets
- Access to off-market replacement properties to meet tight 45-day identification deadlines
- Relationships with QIs, lenders, and 1031-savvy attorneys
Questions to Ask a Potential QI
- Are exchange funds held in segregated accounts?
- What's your E&O insurance coverage?
- Are you a member of the FEA (Federation of Exchange Accommodators)?
- How many California exchanges have you completed?
Samimi CRE Advisors has completed dozens of successful 1031 exchanges for LA County investors and can connect you with the right QI, CPA, and attorney. Contact us to plan your exchange.