Finding 1031 Exchange Investors

[Tyler Gates]

Looking to hear what you would do - 

I've heard of people targeting 1031 Investors to sell large portfolios or multiple buildings but have no idea where I would begin outside of asking a community like Bigger Pockets. Any help or guidance would be great!

Thanks, Tyler

New Hampshire Real Estate Investor

[Dave Foster]

@Tyler Gates, @Kyle Luman, The QI should not be doing anything for the client other than the 1031 exchange itself.  By law the QI has to be an unrelated 3rd party with no other business affiliation with the client.  I've seen some of those advertised also.  But unless their businesses are structured very carefully they're no operating in the clear.  Regardless though, @Bill B. makes a very good point.  When QIs get involved There is generally already a realtor or two involved.  So it's really not the best time in the process for you to find leads.  

I have seen some realtors who have used marketing targeted to 1031 investors as part of their regular outreach.  And this seems to be effective.  If a potential client is using 1031's they will appreciate a realtor they don't have to educate.  If they're not familiar then it's your chance to get your foot in the door by bringing 1031 education to them.

It's been a few years since I checked but at one time NAR showed statistics that of all the transactions potentially qualifying for 1031 exchanges, only about 10% were actually handled that way. That would mean that there's a 90% untapped market for you. You just have to figure out how to get in the door early enough. Education (especially free education) is always appreciated by investors.