When you set up an initial phone call or meeting with a qualified intermediary, you need to ask about the role they typically play in these transactions, their past experience, and the types of exchanges they usually help with. Checking out the person’s website should give you some sense of whether he or she does this as a permanent endeavor or not. Unfortunately, some people who call themselves a qualified intermediary have not been in the business for a long time nor have they accumulated the references from many people they have worked with. It is up to you to determine that your professional has serious intent to help you.
Ask for references for others who have used this individual in transactions. For a professional who has been working in this capacity for some time, it should be easy to provide several references. Most people who are pleased with their experience with a qualified intermediary will hire this person again and again to assist with 1031 exchanges in their real estate investment business. It behooves you to have confidence about this person’s ability and commitment to serve in this role for you not just now but also if you should need it in the future. Do not hesitate to get references before making a final hiring decision about a qualified intermediary.
Your qualified intermediary should also be easily reached and clear about the requirements of 1031 exchanges. Since the fallout of a mistake in this process could have such big implications for you, it is imperative that you speak with this individual ahead of time to determine how he or she plans to proceed in your case. Hiring a qualified intermediary requires that you feel confident about the person who will be receiving and applying funds on your behalf and it is not something that should be overlooked or approached too hurriedly.