When comparing 1031 exchange fees and costs charged by Qualified Intermediaries (Accommodators), Investors need to fully analyze and consider factors such as:
- Set-up and/or administrative fees
- Per property or settlement charges
- Interest income paid to the Investor
- Interest income retained by the Qualified Intermediary
- Transactional or service fees
It is easy for a Qualified Intermediary to structure its fees and costs to appear to be less expensive than its institutional competitors, but when you factor in all of the above fees, costs and charges to the calculation, especially the amount of interest retained by the Qualified Intermediary, you will able to compare each fee schedule side-by-side to determine which is the best value.
Investors should also analyze the financial strength, insurance, bonding and stability of the 1031 exchange company as well. Do not look solely to the fees and costs.
For more information on what to look for and how to choose a SAFE Qualified Intermediary, read our web page entitled How to Choose a SAFE Qualified Intermediary (Accommodator).
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