1031 Exchange Pricing
At 1031 Exchange Place, we believe that the fees should be reasonable. For forward exchanges, we offer a flat $750 for exchanges. In regards to construction/improvement and reverse exchanges, prices can vary based on complexity. That being said, our fees are incredibly competitive. We also believe that just because you pay a lower price, doesn’t mean you should have to sacrifice experience – our team has been working in 1031 exchanges for decades and has facilitated thousands of exchanges. Our 1031 exchange experts thoroughly understand IRS rules and regulations and can ensure that every transaction is appropriately facilitated so you get the best quality advice and experience, all at a fair price. Need additional help with swaps, drops, strip-offs, etc.? We can help with those too.
Flat rate setup fee which includes the sale of one relinquished property.$750
Fees for a reverse exchange depend on the complexity and if there is financing involved.starting at$7500
Improvment & Construction Exchanges
Fees for an improvement & construction exchange depend on the complexity and if there is financing involved.starting at$1750
Drop & Swaps, etc.
Too many factors need to be calculated for a price with such specialty exchanges.
If you are considering a 1031 exchange, it’s important to understand the pricing involved. A 1031 exchange allows you to defer capital gains taxes on the sale of an investment property by reinvesting the proceeds in a new property. However, there are costs associated with the exchange that you need to be aware of.
- The first cost to consider is the fee charged by the qualified intermediary (QI). A QI is a third-party facilitator who handles the exchange process. 1031 Exchange Place is a QI and our fee is only a flat $750 for most exchanges. This fee covers the QI’s services, including drafting the exchange agreement, holding the funds during the exchange, and ensuring that the exchange complies with IRS regulations.
- Another cost to consider is the cost of the replacement property. When you sell your existing property, you must use the proceeds to purchase a new property of equal or greater value to qualify for the 1031 exchange. This means that you will need to pay for the new property, which can be a significant cost depending on the property’s value.
- You should also consider the cost of any financing you may need to purchase the replacement property. If you are unable to pay for the new property in cash, you may need to obtain a loan. The cost of the loan, including interest and fees, should be factored into the overall cost of the exchange.
- Finally, there are some additional costs to consider, such as closing costs, title fees, and inspection fees. These costs can vary depending on the property and the location, so it’s important to work with a knowledgeable real estate agent and/or attorney to understand the specific costs involved.
By understanding these costs, you can make an informed decision about whether a 1031 exchange is the right choice for your investment strategy.
If you are buying and selling property as part of an investment strategy or retirement portfolio, talk to your tax advisor or financial advisor today to find out whether you should be participating in a 1031 real estate exchange. When you’re ready to begin, contact the experts at 1031 Exchange Place to get the best pricing with unparalleled service on your exchange transaction.