1031 exchange QIs
Deferred
Deferred Inc. is a qualified intermediary for 1031 exchanges. It charges no fee on a standard forward exchange and instead shares the interest earned on exchange funds with the client, a model it says covers its own costs in place of a transaction fee.
An exchange starts before the sale closes. Deferred prepares the exchange documents, guides the client through identification and the purchase, and after closing sends a complete 1031 package for the client's CPA along with the interest earned on the funds. Forward, reverse and improvement or construction exchanges are all supported, with the two complex types quoted on request.
The company reports 7,817+ exchanges and a team with over 100 years of combined 1031 experience. Exchange funds are held at commercial depository banks in segregated accounts, with FDIC coverage available up to $175M, and the company carries a $10M fidelity bond and $5M errors-and-omissions insurance. Offices are listed in Carlsbad and Pasadena, California, with a Delaware address in Dover.
The earnings figures on the site come from a calculator that assumes a forward exchange held for 180 days at interest rates as of a stated date, so the rate quoted on any given day will differ. Confirm the current rate, and the fee for a reverse or improvement exchange, before opening a file.
Best for
Investors running a standard forward exchange who would rather have the intermediary's fee replaced by a share of the interest on their own funds. Reverse and improvement exchanges are priced separately, starting at $7,000 and $7,500.
What they do
- Forward 1031 exchanges
- Reverse 1031 exchanges
- Improvement and construction exchanges
- Segregated qualified-intermediary deposit accounts
- Exchange document preparation
- 45-day identification support
- Post-closing 1031 package for the client's CPA
- Free exchange consultations
Details
| Attribute | Value |
|---|---|
| Other offices | Pasadena, CA, Dover, DE |
| How they charge | No fee on a standard forward exchange, with interest earned on exchange funds shared with the client; reverse exchanges start at $7,000 and improvement exchanges at $7,500. |
| Exchange types | Forward |
| Fund security | Segregated accounts, Fidelity bond, E&O |
| Fee range | Under $1k |
What stands out
- Reports 7,817+ exchanges completed and a team with over 100 years of combined 1031 experience.
- No fee on a standard forward exchange; reverse exchanges start at $7,000 and improvement exchanges at $7,500.
- Exchange funds sit in segregated accounts at commercial depository banks, with FDIC coverage available up to $175M.
- Carries a $10M fidelity bond and a $5M errors-and-omissions policy.
Common questions
- How can Deferred offer a 1031 exchange with no fee?
- Most qualified intermediaries charge a fee and keep the interest earned on exchange funds. Deferred charges no fee on a standard forward exchange and shares the interest instead; the company says technology keeps its costs low enough for its share of that interest to cover the work.
- Where are exchange funds held?
- At a commercial banking partner, in individual FDIC-insured accounts with security protocols in place. The site states FDIC coverage can be arranged up to $175M, and that Deferred carries a $10M fidelity bond and $5M errors-and-omissions insurance.
- Which types of exchange does Deferred handle?
- Standard forward exchanges, reverse exchanges, and improvement or construction exchanges. Forward exchanges carry no fee. Reverse exchanges start at $7,000 and improvement exchanges at $7,500, and both include entity creation or step-by-step support and are quoted on request.
- How do I know whether my sale qualifies for a 1031 exchange?
- Qualification depends on factors such as property type and investment intent. Deferred offers a free consultation to review a specific situation, and asks to be contacted before the sale closes so the exchange can be opened in time.