Watch the webinar on demand.
Working with qualified intermediaries (QIs) to facilitate 1031 Exchange transactions can drive stable deposit growth for your institution. To serve this business niche, you need specialized knowledge and tools that solve real-world challenges.
In the video, our CEO and Co-founder Nathan Baumeister and our Chief Client Officer Jill Feiler walk through the world of 1031s and QIs, including:
- The business and financial challenges that QI firms deal with on a regular basis.
- How these clients can bring in deposits and lending activity.
- Ways to maximize your business development efforts.
See how ZEscrow works for 1031's!
Now a look inside the platform. Watch as Chief Client Officer Jill Feiler walks through the specific workflows and features that help with 1031’s.
Why QIs make great banking clients.
- Large core deposits
1031 deposits come and go, but the aggregate balance is high and remains high during economic fluctuations.
- Wire transfers
Some firms handle thousands of transactions a year, and a single transaction can have multiple wire transfers associated with it.
- Commercial lending
Often when an investor uses a 1031 to swap a property, they want to upgrade to a more valuable property, which requires a mortgage.
- Access to high-net-worth clientele
They open the door to valuable property investor clientele as well as lawyers, realtors, and CPAs.
What do QIs look for in a banking partner?
The 1031 industry follows strict compliance requirements that can vary for states with their own income tax and capital gains rules. QIs are looking for banking partners that understand their business and can provide support in the right areas. If you can meet their business needs and be fair-minded in your negotiations, you’ll go a long way toward winning loyal clients.
They also look for:
- A willingness to support 1031s at every step.
- Thorough understanding of 1031 rules and variations
- Insurance to cover deposits and wire transactions.
- Favorable interest splitting
- Security for wire transfers
- Compliant account structure
- Technology solutions wherever possible
- Delivering what you sell. Ensure your specialty deposits team has all the tools, training, and resources they need to execute 1031s quickly, securely, and with transparent reporting.
In your journey to better understand what qualified intermediaries are looking for, there are some excellent resources that you can use.
- Webinar deck
Use this downloadable PDF of the webinar as a reference or to share with your colleagues. It’s a great way to follow along with the replay and add your own notes.
- Federation of Exchange Accommodators
The FEA is the national association representing QIs. They provide advocacy, continuing education, and a database of QIs.
- eBook: Like-Kind Exchanges Under Section 1031
This ebook is a thorough primer on 1031 Exchanges produced by a QI firm on the east coast and available for free on their website.
- ABA real property, trust, and estate law group (LinkedIn)
- Article: 1031 Exchange Fees, Costs and Charges