How to Pull Off a Last-Minute 1031 Exchange

Real estate investing has gained tremendous traction in the past few years.  More and more people are choosing to buy property for investment due to its strong risk / return profile.  Businesses continue to grow and expand, resulting in hot and competitive markets. Properties listed for sale can come under contract within hours.  Trying to grow your real estate assets in fast-paced real estate markets like Texas, Florida, California, or Colorado can become overwhelming.  Nearly every 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 or “QI” still leans on either a purely paper-based system or a makeshift software built for title work. These exchange methods are not only outdated but also inefficient.  Forms are subject to human error or get misplaced and sometimes they aren't even filled out. This is a costly error if an exchanger were the subject of an IRS audit.  Forms also take time, a highly sought-after commodity in fast-moving business transactions.  

Ideally, a standard forward exchange would begin with the property owner reaching out to their QI before listing the property they would like to sell.  But every deal is different, and an exchange can become very complex very quickly.  A property owner may find themselves at the closing table ready to sell and an exchange needing to happen.  The pen and paper used by so many do not meet the criteria for a rush exchange, let alone a same-day one. 

Accruit has more than 20 years of experience as a nationally recognized 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 1031 exchange technology company. As the first company to complete an exchange entirely over the internet, Accruit has successfully created and developed the patented 1031 exchange processing software, Exchange Manager Pro℠.  The new software reduces the time and increases the efficiency for QI’s processing exchanges.  For example, the property owner has a short time frame to complete an exchange so, they call Accruit to ask if we can get it done.  The answer is, yes, we turn it around in a few minutes using our Exchange Manager Pro℠ software.

The ability to provide rush and same-day exchanges is just one of the many reasons Exchange Manager Pro℠ makes Accruit stand out.  The cloud-based software increases security through two-factor authentication, document retention, and electronic signature capture.  Exchange Manager Pro℠ is built on a 1031 exchange rules-based system with wizards to help the client service professionals processing exchanges without constant oversight and feedback.  With an estimated increase of 2-3x the number of exchanges processed per person.  Users of Exchange Manager Pro℠ can spend more time working with clients and less time with administrative tasks.  Accruit holds the highest customer service score in the industry and our new software is another testament to the level of services and satisfaction we provide to our clients 

Accruit is now extending these advancements to Title Companies, Qualified Intermediaries, Banks, Attorneys, and others.  There are options suited for every business's needs.  Take a look at our Exchange Manager Pro℠ plans - Exchange Facilitator, Managed Service and Software as a Solution.  Find the plan that best suits you and your business needs. 

Exchange Facilitator clients using our automated software features can take advantage of Exchange Manager Pro℠ increased efficiencies, coupled with the depth of knowledge of Accruit’s team of professionals without having to become QIs themselves.  The Exchange Facilitator is an independent consultant and the main point of contact with exchangers regarding 1031 exchanges in the marketplace. Title Companies, Banks, Wealth Advisors and CPAs are often Exchange Facilitator’s.  Although Exchange Facilitator’s can be diverse in nature, they all have a common desire to focus their attention and resources on the growth of their core business while also participating in a value-added service for their customers.

Exchange Facilitator Plan Offers Unique Solutions to:

• No more turning away business or referring to competitors
• Provide a better customer experience
• Drive a new revenue source

Managed Service clients can easily upload necessary documents and information through the cloud and allow Accruit and Exchange Manager Pro℠ to process the exchange.  This allows them to focus on their clients and enjoy a new line of revenue.  The Managed Service offering allows white-label processing, embedded 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 (QI) functionality and administration, reporting, tracking and funds management for 1031 like-kind exchanges. These clients receive a custom branded QI as well as branded documents that flow through Exchange Manager Pro℠, a proprietary, online, secured application.  This allows clients to take time focusing on growing their customers and business with an extended brand offering.

Managed Service Plan Offers Unique Solutions to:

• No more turning away business or referring to competitors
• Provide a better customer experience
• Drive a new revenue source

Software as a Service (SaaS) clients license Exchange Manager Pro℠ software and leverage it to power their exchange operations.  These clients tend to already be Qualified Intermediaries and are looking for the software to increase efficiencies, embed controls and security, and improve the customer experience.

SaaS Plan Offers Unique Solutions to:

• Grow your business without increasing staffing
• Eliminate use of contact sticky notes as deadline reminders
• Turnaround exchanges quickly
• Drive confidence in storage
• Supports maintenance of exchange information

Power your 1031 service offerings with Exchange Manager Pro℠. To learn more about our service offerings or selecting a plan that suits you, contact 800-237-1031.