Qualified Intermediaries are not created equal
Investors generally think 1031 Exchange Qualified Intermediaries are the same – but they’re absolutely not created equal – and the differences can be significant and critical. Did you know there is no regulatory or governmental oversight of Qualified Intermediaries; that only about 1% are licensed, regulated, audited and have minimum equity capital requirements? Scary, when you consider how much money they are holding for investors’ 1031 Exchanges. I have seen numerous Qualified Intermediaries fail over my thirty-five-year career in the 1031 Exchange industry, and most of these failures could have been prevented had there been regulatory or governmental oversight and audit of the Qualified Intermediaries.