1031 with IPX1031 - concerned

[Mike Adams]

I have a rather large 1031 coming up with IPX1031 where I am selling one property and buying another the next day.  Because of the amount that is being 1031'd and the amount they are holding, I am a bit concerned that something can happen to my funds.  I am using a company called IPX 1031 that an attorney I used in a previous closing suggested.  They are owned by National Fidelity and have bonds and insurance.

Anyone ever use them?  Am I over thinking this?

[Dave Foster]

@Mike Adams, IPX is a fine company and has been around a long time.  I believe they pool funds and I don't like that.  And they don't use dual signatory segregated accounts. But if you're concerned the easy fix in your situation would be to ask them to treat it as a "direct" exchange.  Instruct them to have the funds wired directly from the closing of the sale to the closing of the purchase.  It is not required that they actually touch the money.  Only that they direct the flow of the money not you.  Done this way you can verify that the closing attorney sends funds directly to the next closing.  Of course you'll have to really monitor your attorney to make sure they wire promptly.