Question about 1031 intermediaries

[John Cho]

What is the difference between different intermediaries or how would you evaluate them assuming basic conditions are met (timely communication, can complete transaction within IRS deadlines and not a crook).  Im trying to compare a bigger company like IPX versus more mom and pop.   

[Dave Foster]

@John Cho, That is a very timely question as there has been a spirited discussion around this exact topic here - https://www.biggerpockets.com/....  The takeaway from this story of a big well respected 1031 company that screwed up is that it is not necessarily the size or the scope  or even the experience of the company you're working with.  Your experience will be as good as the individual you get to interact with.  And this is where a more boutique firm can tip the scales - as long as they have the demonstrated experience and knowledge bank.  

Experience that doesn't translate to the folks you interact with isn't helping you.  

As far as the important issue of your funds security.  You need a way to ensure that your funds are segregated and you have signator approval before any funds are allowed to leave the exchange account.

You do typically get economies of scale with larger firms.  And pay more for the learning curve or small production capabilities of a mom and pop.  And exchanges tend to be higher priced on each coast and cheaper as you move inland (probably no other reason other than the cost of office space :)

There are several really good QIs right here on Bigger Pockets.  You can review references for them at their respective profiles.  The really cool thing about BP is that they are not 'anonymous first name only" references.  You can actually reach out to those individuals and get their honest feedback.

Bottom line is interview people not companies!  That's who's going to be your guide.  And a good fit with a QI who "gets" you is worth gold.  

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