Posted by bb on June 20, 2005 at 19:13:05:
I have done a few 1031’s and have always used 1 attorney to handle everything (any real estate attorney) and pay about 800 in the baltimore area
b
1031 Council - Posted by Pat
Posted by Pat on June 19, 2005 at 21:50:17:
Call a closing attorney last week to get numbers of 1031 Intermediaries that he had used in the past.
All were other attorney’s offices. None wanted to act as the intermediary. They wanted to Act as Council to help set up the 1031 at a cost of $1500 to $3000.
The only one that actually acted as a true intermidiary said that they never dealt with the clients… the 1031 council just sent the paper work over to their office.
Has any one ever had to go the route of having an attorney set up the 1031? Seems like it would be straight forward, fill out the standard form type of stuff.
Anyone had any experience where they did not use a council and used one of the “online” intermediaries.
Thanks
Re: 1031 Council - Posted by William L Exeter
Posted by William L Exeter on June 23, 2005 at 11:37:18:
I thought I would make some general comments here about other issues that should be addressed when evaluating an Accommodator. There is much more to selecting an Accommodator that just fee. Do not go for the cheapest fee just to save $100 or $200.
It is important to know that Accommodators are NOT licensed or regulated by any government entity, so it is up to the investor to do a thorough due diligence on the Accommodator to make sure that your funds are protected. Saving $100 makes no sense if the Accommodator disappears with your funds.
Check to see if the Accommodator is covered by a Fidelity Bond and check to see the amount of the fidelity bond. Many Accommodators are under insured. Most of the major Accommodators have fidelity bond coverage in the $20 to $30 million dollar range. Make sure the Fidelity Bond is “per occurrance” and not “in aggregate.” Most Fidelity Bonds are written in aggregate, which is the total or maximum coverage for the year. The per occurance bond is per theft of funds.
Check to see if the Accommodator has errors and omissions insurance in case they cause a loss to you by an error or omission in their administration of the exchange.
And, finally, make sure they hold your funds - no matter what size account you have - in a Qualified Escrow or Qualified Trust Account in order to protect your funds from the Accommodator filing bankruptcy.
Those Accomodators that charge less typcially provide less in the way of insurance, bonding and other protections. It is investor beware.
Re: 1031 Council - Posted by dealmaker
Posted by dealmaker on June 20, 2005 at 21:37:55:
Last time I got arrested I asked my CPA for a criminal defense attorney, LOL.
Do a google search, find a few hundred names, get one that charges $500-$600. That’s all I’ve ever paid.
dealmaker
Re: 1031 - Posted by David Krulac
Posted by David Krulac on June 20, 2005 at 06:19:13:
I’ve seen national 1031 intermediaries charge from about $1,500 to $5,000 for one transaction. We’ve used attorneys, and are currently using a CPA referred to by the settlement company. He does all the paperwork, is a real estate investor himslef, often attends settlement, and charges only $500.