Monday, November 20, 2006 at 04:10PM | Staff 1031 Exchange Fees, Costs and Charges Explored
When comparing 1031 exchange fees and costs charged by Qualified Intermediaries (Accommodators), you need to fully analyze and consider the following factors:
- 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 Qualified Intermediaries (Accommodators) to structure their fees, costs and charges to appear to be less costly than other Qualified Intermediaries, but when you factor in all of the above fees, costs and charges into the equation, especially the amount of interest income retained by the Qualified Intermediary, you will able to compare each fee schedule side-by-side to determine which is the best value.
Also, remember: Do not be penny wise and pount foolish. You should also analyze the financial strength, insurance, bonding, stability and resources of the Qualified Intermediary as well. Saving a few dollars in fees will mean nothing if your principal balance is at risk.
For more detailed information on what to look for and how to select a SAFE Qualified Intermediary (Accommodator), visit our web page entitled How to Choose a SAFE Qualified Intermediary (Accommodator)
