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1031 Exchange Services Can Grow and Add Revenue to Your Title Business
Accruit’s Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange platform, Managed Service, allows companies within the real estate industry to offer Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange services, in addition to their primary business. Offering “In-house” Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange services allows you to capture the revenue that you are currently referring away to your competitors, as well as accelerate growth for the primary business, such as title work for title and escrow companies.
One might ask, how does offering Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange services help generate more title work? There are a couple of ways in which Managed Service, the Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange platform, has proven to grow title work.
Retain Existing Clients, Stop Referring Them Out to Competitors
As a title company, if you do not offer “in-house” Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange s services and you come across a client needing a Qualified Intermediary (QI) there is a good chance you might refer them to Exchange Companies that are subsidiaries of your competitors.
Once that referral is made, the chances of the referring title company earning the title work on future real estate transactions for that client is greatly reduced. All consumers prefer the path of least resistance, and the most efficient means to an end. If the QI handling the Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange has an “in-house” title department, they are going to recommend that service to their Exchanger - you may be saying good by to future closings.
Let’s look at this scenario closer. The national average fee for title work is roughly $3000 per real estate closing. Every Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange must have at least one Relinquished Property sale and one Replacement Property sale. That’s $6000 in title work per Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange . If the title company offers Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange services through Managed Service, they have secured an additional $3000 in title work with a valid Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange . However, if they do not and they recommend an Exchange Company with a title department for the Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange , they may miss out on the $2000 Replacement Property transaction.
Utilize Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange s to Generate More Title Work
Offering Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange services through Managed Service provides the title company an inside track to upcoming real estate transactions. As an Exchanger, not only are they disposing of at least one property, they must acquire at least one more property for a valid exchange. Right there you have a second real estate transaction. Many Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange s involve multiple properties on either side of the exchange, resulting in even more title work.
The opportunities don’t stop there. Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange documents, included in the closing paperwork, not only include the Buyer’s and Seller’s details, but also their real estate agents’ details. Exchange documentation is a great prospecting tool, with a built-in “sale pitch.” Depending on the property type and intent, there is a good chance the Buyer or Seller might also be interested in participating in a Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange .
Let’s put the above scenario into practice. As a Managed Service facilitator offering Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange services, your client is participating in a Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange , and you are handling the closing of their Relinquished Property. The Sales Contract will include the Buyer’s information, which can be used for an introductory call - “Hello Buyer, our company is handling the title work for the property at XYZ that you are purchasing. Are you buying this as part of a Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange ? Are you interested in our Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange services? Are you happy with the current title company, we would be more than happy to help you with your closing.”
1031 Exchange as a Tool to Accelerate Title Business
Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange services through Managed Service should not be seen as an ancillary service offering. It is truly a supporting product offering that will help not only retain existing clientele, but also help companies generate new title work.
In today’s market, where real estate transactions have slowed, it is more important than ever for title companies to capture as much revenue as possible and protect the business they have built, but also look at unique ways to stand out from the competition. Offering “in-house” 1031 exchange services through Managed Service provides a solution to both. Read about the results a title company saw after implementing Managed Service.
The material in this blog is presented for informational purposes only. The information presented is not investment, legal, tax or compliance advice. Accruit performs the duties of a Qualified A person acting to facilitate an exchange under section 1031 and the regulations. This person may not be the taxpayer or a disqualified person. Section 1.1031(k)-1(g)(4)(iii) requires that, for an intermediary to be a qualified intermediary, the intermediary must enter into a written "exchange" agreement with the taxpayer and, as required by the exchange agreement, acquire the relinquished property from the taxpayer, transfer the relinquished property, acquire the replacement property, and transfer the replacement property to the taxpayer. Intermediary , and as such does not offer or sell investments or provide investment, legal, or tax advice.
