Best 1031 Exchange Companies

Considering a 1031 exchange to defer your capital gains? You'll need a Qualified Intermediary, but finding the right one can be challenging. Here we cover what we think makes a great Qualified Intermediary and provide a few recommendations.

‍

What is a 1031 Exchange?

A 1031 exchange, also called a like-kind exchange or a tax-deferred exchange, is a tool real estate investors can use to avoid capital gains taxes. When selling a property, the investor can work with a Qualified Intermediary to re-invest the proceeds into a replacement property, and when done successfully they can defer all capital gains taxes from the sale. One major requirement for this process is that a Qualified Intermediary must hold on to all of the funds throughout the exchange process for a 1031 exchange to qualify. Check out our comprehensive overview to learn more about how 1031 exchanges work.

‍

What makes a great Qualified Intermediary?

Working with a Qualified Intermediary is a requirement for a successful 1031 exchange. Choosing the right intermediary is important because they will structure the exchange, draft the exchange documents, and most importantly hold your exchange funds throughout the process. When trying to decide who to trust with your 1031 exchange, we think you should look for these things:

Experience and Expertise

A great Qualified Intermediary can help you understand the exchange rules and guide you through the process. You can expect your intermediary to be knowledgeable about the process and be able to answer questions about your specific situation - from qualifying property to navigating holding entities to dealing with multiple owners.

You should also expect your Qualified Intermediary to be easy-to-reach and responsive throughout the process. Some things to look for:

Does someone answer when you call them? Are they quick to call you back or respond to text messages?
Does the team have experience doing exchanges? Does anyone on staff have previous experience as an attorney or CPA?
Do they have good customer reviews? Did customers with a similar situation have a good experience?

‍

Security of Funds

When choosing a Qualified Intermediary, we also think the best ones can describe how they protect your money.

Do they hold your funds in segregated accounts? Or are they commingled with other customer’s money?
What controls do they have in place before sending money? Do they require your authorization before moving your funds?
Do they have a fidelity bond in place to protect your funds?
For very large transactions, do they have a sufficient level of FDIC coverage with their banking partner?
Do they have appropriate levels of insurance coverage in case of an issue?

‍

Fair Price

A great Qualified Intermediary offers fair pricing. Some exchanges are complicated, requiring many sales and purchases, navigating laws from multiple states, and collaboration with other tax attorneys and accounts. Other exchanges are fairly simple and straightforward. You wouldn't expect to pay the same amount to exchange two skyscrapers as you would buying and selling two duplexes. The right partner has the expertise to handle your transaction and charges a competitive price for the service.

‍We also believe a great Qualified Intermediary is transparent in how they make money and are upfront about their fees. Some questions you can ask:

Do you earn interest from holding my funds? If so, how much interest will I earn?
Do you charge an exchange fee? If so, how much?
Do you charge additional fees throughout the process?
1. Fees for each wire transfer or issuing of a check?
2. For additional sales or purchases?
3. Rush fees for quick closings?
4. Fees for alternative investment closings, like DSTs?

Best 1031 Exchange Qualified Intermediary

There are many Qualified Intermediaries across the country, from local specialists to national providers. We recommend evaluating providers based on experience, security of funds, and fair pricing. The factors above can help you compare options in your state or nationwide.

We struggled to find a great nationwide 1031 Exchange Qualified Intermediary, so we built what we the company we'd want to use as an investor. We're biased, but we believe we're best in class in all the areas that matter.

Deferred

7,047+ Exchanges (and counting...) — Deferred is redefining how 1031 exchanges should be. Our experienced team delivers a service level that exceeds expectations, with no fee—while earning you interest on your exchange funds.

Get Started Learn More

No Fee + Earn Interest

Simple & compliant process

No hidden fees or upsells

Forward Exchange for No Fee

Experience and Expertise - With over 7,000 exchanges, 100+ years of experience, an attorney and CPA on staff, and hundreds of 5 star reviews, we’re proud of our work and love taking care of our customers. Want to know what it’s like to work with us? You can get started online 24/7, schedule a call, or just call or text us at (866) 442-1031.

Security of Funds - We hold your funds in dedicated, segregated accounts. We can offer increased FDIC protection up to $175m. We carry a $5M Fidelity Bond + $5M E&O coverage, higher than many competitors so our larger clients can feel comfortable knowing their money is secure.

Fair Pricing - We’re pioneering the No Fee Exchange. Our competitors charge exchange fees, wire transfer fees, additional closing fees, rush fees, all the while they’re earning interest on your money. We couldn’t be more transparent about our pricing - we don’t charge a fee and we share interest by default for large exchanges.

‍

Notable Mentions

Best Reverse Exchange Company – We think Exstra1031 is an excellent choice for reverse exchanges. Their team has deep experience specializing in non-traditional exchanges and are easy to work with. In addition to this, they handle the full setup and management of Exchange Accommodation Titleholder (EAT) entities for reverse 1031 exchanges—a critical step in meeting IRS compliance requirements. The team is led by founder and President Stan Freeman and Vice President & General Counsel Jordan Born.

‍

Best Company for Complex Exchanges - Mary Foster literally wrote the book on 1031 exchanges. At 1031 Services, the team can handle the most complex reverse, reverse improvement, or other esoteric types of exchanges.

Best 1031 Exchange DSTs

Delaware Statutory Trusts (DSTs) are passive real estate investment vehicles that allow multiple investors to co-own a fractional interest in large, professionally managed properties. They are popular in 1031 exchanges because they offer diversification, eliminate the responsibilities of active property management, and often come with stable income potential. DSTs also simplify the identification process by providing pre-packaged investment options that are typically structured to meet 1031 exchange requirements.

1031 Financial: A DST broker with access to nearly every DST on the market. They work with you to match your proceeds to investments that meet your specific goals.
Origin Investments: Offers their own DST with a low fee structure. While their minimum investment is $250,000, they’re open to discussing lower amounts for Deferred customers.
RealtyMogul: Offers access to vetted DST investments, providing investors with passive income opportunities and diversification in commercial real estate.
1031 Capital Solutions: Offers vetted DSTs, REITs, and other strategies to reduce taxes and grow income, appreciation, and diversification.

‍

Best 1031 Exchange Single Family Rental Marketplaces

Single-family rentals (SFRs) are standalone residential properties that can be rented to tenants, offering a straightforward and flexible investment option for 1031 exchanges. They appeal to investors seeking stable, long-term rental income with the potential for property appreciation. SFRs are widely available and easy to manage, making them an accessible choice for those looking to diversify their portfolio or invest in high-demand residential markets.

Roofstock: An online marketplace that enables investors to buy and sell tenant-occupied single-family rental properties, providing access to pre-vetted homes with detailed financial insights and connections to property management services.
DoorVest: Makes it simple to exchange into a portfolio of single-family rentals, offering hands-off property management.
Build2Rent: Specializes in turnkey new construction properties. These properties are sourced off market and could include below-market interest rates and discounted property management.

‍

Best 1031 Exchange Alternative Marketplaces

Looking for more creative strategies? There are some marketplaces with alternative offerings that can help source your next replacement property.

STR Search: Specializes in identifying high cash-flowing Airbnb properties through a data-driven approach, ensuring investors acquire profitable short-term rentals.
nxt-CRE: Helps 1031 exchange buyers find acquisition opportunities and financing options and is free for Deferred customers.
FarmTogether: Provides access to high-quality farmland opportunities with historically attractive risk-adjusted returns.

‍

Best 1031 Exchange Real Estate Agents

Working with the right real estate agent can make all the difference in a 1031 exchange. The best agents understand the time-sensitive nature of these transactions, can help you identify qualifying replacement properties quickly, and know how to navigate the IRS rules to keep your exchange on track.

At Deferred, we’re fortunate to have trusted industry professionals on our advisory board who bring decades of real-world transaction experience to our clients and partners. These advisors include seasoned real estate brokers and investment specialists who have successfully guided countless 1031 exchanges, offering insights on market trends, property selection, and negotiation strategies. Their expertise helps ensure our customers connect with agents who understand both the investment and compliance sides of a 1031 exchange

1031 Exchange Companies