Automating the 1031 Exchange Processes Increases Client Satisfaction

Facilitating a 1031 like-kind exchange not only takes time, but also requires significant knowledge to help the real estate investor understand the complexities of a safe-harbor 1031 deferral.  Qualified Intermediaries (QIs) are facing unforeseen pressures driven by all-time high transactional volumes.  Coupled with employment retention concerns, tax uncertainties still looming in Washington, D.C. and limited real estate replacement property options, the 1031 industry is working overtime to meet demands to satisfy clients in the 180-day period necessary to complete 1031 exchange transactions.  

QIs that are focused on daily administrative duties like 45-day identification reminders, collecting faxed signatures, customizing document preparation, collecting assignments, tracking files between their home and office, managing electronic calendars and re-entering data find it increasingly challenging to create a great client experience.  All of these mundane tasks compete with time your clients demand to interact with you, the 1031 exchange expert.  It is time to automate your redundant 1031 processes in return for rebuilding your relationship with your clients. 

Top 10 Reasons Qualified Intermediaries Should be Using 1031 Exchange Software

1. Document preparation and delivery.  1031 documents should not require significant rewrites and customization to accomplish your clients’ transactions.  Automating the drafting, delivery, and signing of all exchange agreements provides a consistent delivery to both your staff and your clients.
2. 45-day and 180-day reminders.  Calendar reminders and sticky notes cannot keep up with demand.  Well drafted and TIMELY notices should always be expected by your clients – so leverage technology to handle this banal task and automate the workflow. 
3. Exchange Calendar overview. A quick glance at upcoming deadlines at a company, client, exchange specialist, day, week, or monthly level supports prioritizing the most important task across all exchanges.
4. E-signature.  Not only more secure, e-signatures provide audit-trails, efficiencies, and flexibilities necessary to participate in today’s real estate industry workflow.
5. End-of-Exchange Report. A terrific value-add to the exchanger - A click of a button provides all the necessary information for your client’s 8824 report at any time.
6. Auto populate repeat clients, referral partners and wiring instructions.   Immediate access to repetitive data stored in highly secured, dedicated, and redundant databases for easy population in the 1031 workflow.
7. Segregation of duties. Provide certainty to who has access to your clients’ data and exchange funds while ensuring your company’s security protocols are met.
8. Single data entry.  The top causes of failures are miscommunications or inaccurate data.  Remove the need to input the same information multiple times to complete a 1031 exchange transaction.
9. Automated reporting.  Detailed downloadable pending, open, and closed exchange reports.  Produce critical deadline alerts.  Analyze business trends by types of properties, locations, sales leads.  
10. Access to all exchange data anytime, anywhere.  In today’s virtual world, carrying around hard copy agreements and reports containing your client’s personal data or even residing on a company laptop is putting both you and your client at risk.     

The 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 cannot be the reason deals slow down in today’s high-paced real estate environment.  The services of a QI must integrate seamlessly to the long-term objectives of your clients.  Asking clients to step back in time to provide a wet signature, reproduce data that was previously given, act on the one email or voicemail left by your team, impede a closing because documents are still in transit, or simply miss a critical deadline due to someone on your staff being sick or on vacation is not a way to grow or sustain business going forward.  Those QIs who have thrived over the last two years recognize the importance of embracing change and quickly adapting newer technology to stay relevant. 

Benefits of Dedicated 1031 Exchange Software

Whether your 1031 exchange operations are a secondary service for your parent company, or you are an independent QI managing every aspect of your exchange, don’t rely on poorly recalibrated title, loan, or legal software masquerading as a 1031 process to make your team more efficient and profitable.  Do your homework before you engage a team of developers who promise to quickly create an excel spreadsheet, automate a mail merge, or design, develop and launch a customized software that is scalable for your future.  New technology projects tend to lead to cost overruns, unnecessary distractions, and ultimately frustrations due to failure of meeting expectations. 

Seeking out a proven 1031 Software as a Service (SaaS) offering will allow you to put your focus back to where it belongs – ON THE CUSTOMER.  Exchange Manager Pro is the industry’s only SaaS solution built 100% for the 1031 like-kind exchange process.  Through open APIs, this secured, cloud-based 1031 exchange solution integrates with current workflow.  Exchange Manager Pro was designed, developed, and patented by one of the country’s largest and oldest qualified intermediaries.  Now, more than ever, qualified intermediaries must maintain an efficient, consistent and automated client experience to parallel the industry being served.  Exchange Manager Pro provides the software delivery to enhance the 1031 experience and put qualified intermediaries focus back on the client.