4 Essential Questions to Ask Your Qualified Intermediary: Guiding Your First Meeting

When embarking on a 1031 exchange, meeting with a Qualified Intermediary (QI) is a critical step. But as the saying goes, “You don’t know what you don’t know.” To help navigate this meeting and ensure your exchange aligns with your goals, here are four key questions to ask your QI:

1. What is Your Experience with 1031 Exchanges?

Understanding your QI’s level of experience is crucial. Ask about their track record, the types of exchanges they’ve handled, and any specific challenges they’ve navigated successfully. Experienced QIs will have a wealth of knowledge and be able to foresee and manage potential issues.

2. How Do You Safeguard Exchange Funds?

Your exchange funds’ security is paramount. Inquire about the QI’s policies for holding and protecting your funds, including any insurance or safeguards against fraud. Ensure they have robust procedures in place to keep your money secure.

3. Can You Explain the Timelines and Critical Deadlines?

1031 exchanges are time-sensitive, with strict deadlines. Ask your QI to walk you through the critical timelines, including identification and settlement periods, and how they will assist in ensuring you meet these deadlines.

4. Are you insured and bonded?

Because most states do not have regulations in place for QIs, many do not have insurance or bonding in place. Ask your QI if they have errors & omissions insurance and a fidelity bond of at least $1 million each.

Armed with these questions, you can make the most of your initial meeting with a Qualified Intermediary. If you’re looking for expert assistance in navigating your 1031 exchange, contact our team at WealthBuilder 1031 at (888) 508-1901 for experienced guidance.