6 Best 1031 Exchange Companies for 2022
This article is part of a larger series on Business Financing.
While all 1031 exchange companies can help you with a like-kind exchange, the decision to choose a specific company comes down to the complexity of the transaction and whether you need additional services.
Here are the six best 1031 exchange companies and what each is best for:
- IPX 1031: Best overall 1031 exchange company backed by the strength of a Fortune 500 company
- First American Exchange: Best for online services
- Wells Fargo Commercial: Best for additional banking services
- Strategic Property Exchanges LLC: Best for comprehensive tax and business planning services
- Exeter 1031 Exchange: Best for complex exchanges like reverse exchanges
- 1031x: Best for a flat fee structure
IPX 1031: Best Overall 1031 Exchange
Backed by the strength and reputation of Fortune 500 member Fidelity National Finance Company, IPX 1031 is our choice for the best overall 1031 exchange due to an unmatched level of in-house expertise. It provides 1031 exchanges as well as title and settlement services to investors, lenders, and real estate professionals. IPX 1031 has provided 1031 exchange services for more than 20 years and is the nation’s largest qualified intermediary.
IPX 1031 carries a $100 million fidelity bond and $30 million in liability insurance, including errors and omissions. The company also has a separate national office for complex exchanges.
IPX 1031 Costs
IPX 1031 costs vary by the exchange’s type, complexity, and location. You can connect with a representative through the IPX 1031 website for more information on costs and fees associated with your specific exchange.
First American Exchange: Best for Online Services
When it comes to comprehensive information about 1031 exchanges online, First American Exchange has an advantage over its competitors. Not only can you ask questions directly through the website, but there are resource libraries, calculators, videos, and webinars that are easily accessible. In addition, the company is publicly traded, and it adheres to strict 1031 exchange regulations.
First American Exchange deposits funds in institutions insured by the Federal Deposit Insurance Corporation (FDIC) with investment-grade ratings. First American Exchange offers title insurance and full settlement services to real estate brokers and mortgage companies, along with 1031 exchange services for investors.
First American Exchange Company Costs
Delayed Exchange | $300 to $1,300 |
Simultaneous Exchange | $600 to $1,800, $300 for each additional property |
Reverse Exchange | $10,000 to $15,000, plus fees based on transaction |
Built To Suit/Improvement Exchange | Varies |
Wells Fargo Commercial: Best for Additional Banking Services
Wells Fargo is an excellent choice for customers who need more than just 1031 exchange services due to its variety of banking, notary, mortgage, and financial advisory services. Investors who have an existing relationship with Wells Fargo can use its 1031 exchange service to keep all financial transactions with one company.
Wells Fargo is fully bonded and insured with liability insurance, including errors and omissions insurance. The company uses in-house FDIC-insured accounts to deposit the 1031 exchange funds. Wells Fargo also has a dedicated team focused exclusively on like-kind exchanges.
Wells Fargo Commercial Costs
Wells Fargo 1031 exchange costs can vary depending on the type, complexity, and location of the exchange. The company also offers discounted fees for banking customers. Visit Wells Fargo’s website for more information on its 1031 exchange services.
Strategic Property Exchanges LLC: Best for Tax and Business Planning Services
For businesses looking for comprehensive tax and business advisory services along with a 1031 exchange, Strategic Property Exchanges LLC is an outstanding choice. The company analyzes your current tax situation and creates a customized tax and business strategy. This includes restructuring your real estate assets, entities, and partnerships to maximize tax benefits, reduce costs, and help achieve real estate investing goals.
In addition to the standard exchanges offered by all of the companies listed here, Strategic Property Exchanges LLC also offers the following exchange services:
- Vacation or personal use property exchange: Changes to federal tax laws may permit some or all of the gain on its sale to be tax-free.
- Tenant in common exchange: This allows the new owner to receive monthly income and a percentage of interest in a much larger real estate development.
- Foreign-owned property exchange: These are United States properties owned by foreign nationals who must comply with additional tax withholding rules.
- Property owned overseas exchange: US taxpayers can exchange property for a like-kind property located overseas.
Strategic Property Exchanges LLC Costs
Due to the variety of 1031 exchange services and the level of customization for your specific needs, pricing and costs can vary. Visit Strategic Property Exchange LLC’s website for more information or reach out to a representative.
Visit Strategic Property Exchange LLC
Exeter 1031 Exchange: Best for Complex Exchanges
Business owners looking for a complicated exchange such as a reverse or improvement exchange should consider Exeter 1031 Exchange. The company offers a guarantee, refunding 100% of the 1031 exchange set-up fee if clients aren’t completely satisfied.
Investors’ funds are deposited into a qualified trust account, protecting those funds from any bankruptcy filing. Exeter 1031 carries a $30 million fidelity bond and liability insurance. You can contact them 24/7 online or via a toll-free phone number. The company’s website seems slightly outdated, so customers who need a good, interactive website should consider an alternative such as First American Exchange.
Exeter 1031 Exchange Costs
Delayed Exchange | $700 to $1,800 per transaction |
Reverse Exchange | Starting at $5,000 |
Built To Suit/Improvement Exchange | Starting at $5,000 |
1031x: Best for a Flat Fee Structure
One of the most challenging issues with 1031 exchanges is widely varying fee schedules. 1031x has an advantage over other competitors by offering one of the most transparent, flat-fee structures of any 1031 exchange. 1031x offers simple exchanges for just $1,000, regardless of the size or location of the transaction.
1031x is a member of the Federation of Exchange Accommodators (FEA). The company partners with local and national FDIC-insured banks to ensure funds are secured. You can call 1031x for a no-cost consultation or fill out a contact form on the company’s website, and a representative will reach out to you.
1031x Exchange Costs
1031 Exchange | $1,000 for one sale and one purchase, $350 for each additional purchase |
Reverse Exchange/No Lender | Starting at $5,000 |
Reverse Exchange Using Outside Lender | Starting at $7,000 |
How We Chose Best Section 1031 Exchange Companies
When comparing 1031 exchange companies, we compared each company’s ability to handle both simple and complex exchanges, availability, pricing, and what types of exchange transactions are offered. All six of the companies listed here provide at least the following types of exchange services:
- Delayed exchange: Gives investors up to 180 days to purchase a new property after the sale of the previous property.
- Simultaneous exchange: The closing of the new property and the sale of the old property happen on the same day.
- Reverse exchange: Replacement property is purchased before the exchange property is sold.
- Build to suit or improvement exchange: Investors arrange improvements on the property before it’s received as the replacement property.
Other Considerations in a 1031 Exchange
When working through a 1031 exchange, be sure to consider the investment property financing needed on the new property. You should shop around to find the best commercial real estate rates for the replacement property. And before applying for a new mortgage loan, check out our guide to the steps needed to get the small business loan you need. This will allow you to be prepared for the new loan process.
Bottom Line
Businesses attempting a 1031 exchange should always use a qualified intermediary to assist your tax and legal professionals with the transaction. The 1031 exchange companies listed here will assist you in completing the exchange while protecting your tax and business interests. Each provider on this list provides slightly different services at different rates. Check out the companies listed here to find the one that best suits your like-kind exchange needs.
