1031 Exchange - How to Decide Who to Use as a QI?

[Lauren Hogan]

Looking for advice on how to select/choose a QI during a 1031 exchange? For those of you that have successfully completed a 1031, did you use a 1031 company or did you work directly with a QI or did you work with bank that had a QI? 

[Dave Foster]

@Lauren Hogan,  That's a great question.  a 1031 exchange is equally about strategy and case law and strict processes.  Competence and relationship have to go hand in hand.  Because 1031 has such a very specific set of regs.  And because there are so many strategic and operational decisions for you as you move through one.  A large company like you mention can be top notch operationally and handle your exchange perfectly.  But can you talk to them?  Are they accessible?  And do they "get" you and your needs?  The mom and pop down the street might be the nicest folk in the world.  But do they have the years of experience needed to handle the strict processes that have to be in place.  

So you've got to talk and vet.  There's a number of QIs even here on BP.  Check out profiles for references.  Demonstrated experience is going to be a very good guide.  And then make sure you feel comfortable that they get you and your needs and are not just about getting the forms right.  There's a hundred ways to tailor a 1031 to really meet your specific needs.

Cost is always asked about.  Here's an article we wrote for BP - https://www.biggerpockets.com/blog/how-much-does-a-1031-exchange-cost.  It will give you a good start pricing wise.  But at the end of the day don't worry about a hundred dollars either way.  Get the QI who understands you and has been in the trenches long enough to understand the statute and the case law.  There's a bunch out there.  You'll be fine.