All Forum Posts by: Marian Smith

Thanks Kelly.  i am sure I can find someone to do it for a reasonable fee.  The only disallowed story I can find is when an investor used his attorney son as the intermediary.   But i can imagine screwing up a divorce to the tune of tens of thousands of dollars.  My sister in law got a large alimony grant in a divorce and her attorney didn't stipulate how it was to be paid  and instead of monthly over a period of years as expected, her husband gave her a lump sum and she paid a lot more in taxes that way.  Presumably he, the cheating ***, got a big tax break.

Thanks Dawn...and everyone else for responding.  If I go through with it I will try to return and share my experience.  But we are moving so i may forget.

Dawn, I called a title company because that makes sense....for them to facilitate an exchange to get the title and closing business.  The one I called said they couldn't do it because they would be providing other services for me thus disqualifying themselves--which doesnt make sense really, but they gave me the name of an attorney.   Stewart Title has a subsidiary called Asset something or another and they were over 1k.  I can see the 1k price tag  for a business of some sort...there are all kinds of like exchanges.  But the sale of one residential property to be exchanged for another of an equal or higher price seems simple and straight forward.   I would feel like a schmuck paying that much.  The people referring to it as a "small fee" must just have more money than I do.

I am asking if anyone has ever asked an intelligent, trustworthy friend to act as qualified intermediary in a 1031 exchange.  And yes, I would trust my accountant friend to receive the proceeds from a real estate transaction and place the money in escrow in such a manner that I never touch it,  hold documentation for three prospective properties, and later release the escrowed funds when I close on a property or fail to close on one.  It would be a felony if she stole it and she has assets of her own and moreover, she is a nice person.  I would rather pay her than a stranger and from what I have read the IRS appears to be more interested in saying who cannot be an intermediary.  The "qualified" doesn't mean certified or trained, it means "not interested party" so a "no incentive to cheat the government out of taxes" type of intermediary.  I am sure my friend wants me to pay my fair share of taxes just like she pays hers.

Thanks for the responses.   I just don't think I can find an acceptable replacement in 45 days, but want to try.  

I need to read the code again.  If there is specific language required, it aught to be spelled out.  My understanding is that the sales proceeds need to be escrowed immediately upon sale by a disinterested party.  3 properties identified by legal description within 45 days...in writing.   Property purchased for equal or more money within 45 days or within 6 months if they were identified in writing.  How can that be worth 1k?  I am actually as equally worried about my money in escrow by Quickie1031.com as I am about spending the money and not finding a replacement.

i don't see anywhere in the IRS code that states that the QI needs to be anyone in particular.  It just can NOT be a relative,  or your accountant, realtor, etc.

I was just quoted a $1200 price for a 1031 exchange professional.  A title company aught to offer it as a standard service...not for free.  But not for $1200 for crying out loud.

Anybody use a friend or relative who is a lawyer or accountant?  I have a neighbor who would not steal from me who  has an accounting degree.  I could have the title company set up an escrow account in her name.and get a receipt of some sort.  I could make a list of 3 properties,  have it notarized and give it to her.  she could receipt that. That is about it from what I can tell.  Then she would give instructions to the title company to fund the next purchase.

Anybody ever do this?

polybutelene pipes from the 70s to 90s deteriorate from chlorinated water and sometimes break without warning.....so It sounds like they're in the walls.

just saw you already had an appraisal. did it appraise for purchase price?

Realtors are bound to represent the seller unless you have a buyer representation contract with them. That said, no realtor can outright lie to you. This sounds analogous to a house with a finished basement that is legally not part of the square footage but is certainly worth much more than the exact same house next door with an unfinished basement. Ditto a house with a bonus room with no closet that cannot be described as a bedroom but could certainly be a bedroom.

I would ask my realtor to show me comp sales to justify the price.

Also, house must appraise at the purchase price for your loan process to go as expected...the bank appraisal SHOULD act as a safeguard to overpaying.

You attend the auctions on the chance that a property is offered at a price you feel is worth buying. There will be people with cashiers checks and a laptop pulling up a spreadsheet on each property with a price they will pay. Banks have a BPO and an account of what they're owed plus fees for each property. They usually offer the property for the latter at auction but not always, sometimes the former, sometimes, it appears, the former with a distressed discount The buys are when the loan amount is low, but most of these have had numerous offers from investors, and when the bank offers with a discount low enough to make it a good buy. Then you bid against the guys with the spreadsheet. It is really something you have to put some time into knowing there may or may not be a payoff. In a hot market you may need quite a bit of luck.