6 Best 1031 Exchange Companies for 2018

A 1031 exchange is a transaction that allows investors to sell assets and acquire other assets as replacements to defer capital gains tax. We looked at twelve of the best 1031 exchange companies and chose the six best. While they all offer similar services, the best companies are experienced, cost-effective, and backed by large financial institutions.

Top 1031 Exchange Companies for Investors

How We Compared the Best Companies

Companies that offer 1031 exchanges are all relatively similar and there are only a few differentiating factors that set them apart. All of the best 1031 exchange companies are bonded and insured, which is important because they’re dealing with large amounts of money, and as an investor, you want to know your money is protected.

The differentiating factors we looked at to compare 1031 exchange companies include:

• Services provided besides 1031 exchanges
• Costs of 1031 exchange services
• Types of 1031 exchanges offered
• Insurance and bonding amounts
• Customer service contact information and dedicated support
• Industry experience

The top companies offer their services nationwide and take roughly the same amount of time to set up 1031 exchanges because the timeline is dictated by the IRS. We compared the top companies based on the types of 1031 exchanges they offer, their experience handling 1031 exchanges, and more.

The best 1031 exchange company is going to be the one that offers the type of 1031 exchange you’re looking for (e.g., a reverse exchange). They are going to also have a good company financial standing with a history of many successful transactions and helpful customer service.

“When choosing a 1031 exchange company, look for one with a well-established history and a large company. Before 2008 in particular, there were smaller parties in the business. Some were not reputable and others were not competent. I want my clients to have the benefit of a large entity with significant financial resources (and large insurance limits) in case they make a mistake.” – Elizabeth A. Whitman, Attorney & Founder, Whitman Legal Solutions, LLC

It’s also fine to use your bank to set up your 1031 exchange if they offer that service. However, our recommendation for the best 1031 exchange company is First American Exchange. Like national banks, they are also backed by a large financial institution, but they’re much more experienced at the 1031 exchange process.

Best Overall 1031 Exchange Company: First American Exchange

We chose First American Exchange as our best 1031 exchange company because they have a long history of successful 1031 exchanges. They’re backed by First American Financial Company, which means they’re a subsidy of a publicly traded company and so have to adhere to their strict regulations. They also only deposit 1031 exchange funds in FDIC insured institutions with investment grade ratings.

First American Exchange 1031 Exchange Services

First American Exchange offers title insurance and full settlement services to real estate brokerages and mortgage companies along with their 1031 exchange services. This is similar to what Old Republic Exchange and IPX 1031 offer. Similar to Old Republic Exchange, they can provide an indemnification letter protecting the investor’s transaction from loss of funds in most cases.

Specifically, First American Exchange offers the following type of 1031 exchange services:

• Delayed Exchange: The most popular 1031 exchange, giving investors up to 180 days from the time of selling their property to purchase a replacement property
• Simultaneous Exchange: The closing of the exchange and replacement property occur on the same day
• Reverse Exchange: Replacement property is purchased before the exchange property is sold

First American Exchange also offers their own platform, which uses technology to ensure forms are completed accurately and quickly. You can share your documents on the platform with other parties and everything is done electronically.

Costs

First American Exchange has the following costs:

• Delayed Exchange Costs: Relinquished property: $600 – $1,300; Replacement property: $400 – $900; Each additional property: $300
• Simultaneous Exchange Costs: Property exchange: $600 – $1,800; Each additional property: $300
• Reverse Exchange: Replacement property: $600 – $1,300; Relinquished property: $400 – $900; Each additional property: $300; Leaseback fee: Property holding fee: $700
• Built to Suit or Improvement Exchange: Delayed or reverse exchange fees plus Property holding fee: $700; Leaseback fee: $750, $25 per check written; Power of attorney: $76

The cost of 1031 exchange services at First American Exchange vary depending on the cost of the property being sold and the type of 1031 exchange that is being completed. There are generally separate fees for things like wire transfers, cancellations, and requests that need to be expedited. Each of the above costs is for one property.

Insurance, Bonding, & Experience

First American Exchange maintains a multimillion dollar fidelity bond and a professional liability insurance policy from a leading independent insurance underwriter, and has nationwide attorneys on staff. They’re a subsidiary of the original company that was founded in 1889 and is still one of the leading title and settlement services. Further speaking to their experience, their revenues were over $5.6 billion in 2016.

What’s Missing with First American Exchange

First American Exchange is a comprehensive 1031 exchange company. However, if you’re looking for the convenience of conducting your 1031 exchange services at the same place you bank, they’re not the right company for you, and instead, you may want to try Wells Fargo (if that’s where you bank).

Best Alternative to First American Exchange: Old Republic Exchange

Old Republic Exchange is our recommended alternative to First American Exchange because they’re also a subsidiary of a publicly traded company, Old Republic International. This means that they also have strict regulations to adhere to when it comes to dealing with 1031 exchanges. Plus, like First American, they’ve been doing 1031 exchanges successfully for a long time.

Old Republic Exchange 1031 Exchange Services

Old Republic Exchange offers 1031 exchanges just like the other five companies, and they also offer title and settlement services. Similar to First American Exchange, they also offer their investors reimbursement for funds lost due to the company’s negligence, dishonesty or fraud. This is given to investors as a written guarantee. Unlike the other companies, they give a list of types of properties that are acceptable for 1031 exchanges, such as golf courses and ranches.

Specifically, Old Republic Exchange offers the following types of 1031 exchange services:

• Delayed Exchange: Gives investors up to 180 days from the time of selling their property to purchase a replacement property
• Simultaneous Exchange: The closing of the exchange and replacement property occur on the same day
• Reverse Exchange: Replacement property is purchased before the exchange property is sold
• Build to Suit or Improvement Exchange: Investor arranges for construction of improvements on the property before it is received as a replacement property
• Personal Property Exchange: Sell existing personal property and purchase more profitable or productive personal property (discontinued January 2018)

Costs

Old Republic Exchange 1031 costs include:

• 1031 Exchange Costs: Vary depending on the type, complexity and location of the exchange; when you select your property, you’ll be able to receive actual costs
• Wire Fees: Vary
• Expedition Fees: Vary

Just like with all the other 1031 exchange companies, fees vary based on the sales price of the original property and the purchase price of the replacement property. Old Republic Exchange charges separate legal fees that vary based on the complexity of the transaction. Wire fees and expedition fees are separate as well.

The costs are generally broken down into the type of exchange that’s completed, such as a delayed exchange or a reverse exchange. Although they offer the same exchange services as First American Exchange, they’re not as transparent with their fees. You have to contact one of their advisors to receive specific fees based off of your 1031 exchange.

Insurance, Bonding & Experience

Old Republic Exchange has professional liability errors and omissions insurance, with a $50 million aggregate limit, a bond with a $40mm single loss limit, and an $80mm aggregate limit. They have over 25 years of successful 1031 exchange experience.

What’s Missing with Old Republic Exchange

Unlike Asset Preservation Incorporated, Old Republic Exchange doesn’t offer free consultations. You need to be ready to complete a 1031 exchange before you work with them. They also don’t have a full breakdown of prices for their services on their site, which makes it difficult for investors who want to price shop.

Best Bank that Offers 1031 Exchange Services: Wells Fargo

Wells Fargo has a separate 1031 exchange department that offers several different types of 1031 exchange services. They put each investor’s funds in a separate Wells Fargo bank account solely for the 1031 exchange. If you already bank with them, they may be your most convenient option. If you like the security of using a well-known bank, then Wells Fargo is right for your 1031 exchange needs.

Wells Fargo 1031 Exchange Services Offered

Wells Fargo offers additional banking services, notary services, mortgage and financial advisory services, as well as 1031 exchange services. This is good for investors who want their banking and 1031 services under one roof. Unlike First American Exchange or Old Republic Exchange, they don’t offer title or settlement services, but have affiliates that they can recommend.

Their specific 1031 exchange services include:

• Delayed Exchange: The most popular 1031 exchange, giving investors up to 180 days from the time of selling their property to purchase a replacement property
• Simultaneous Exchange: The closing of the exchange and replacement property occur on the same day
• Reverse Exchange: Replacement property is purchased before the exchange property is sold
• Build to Suit or Improvement Exchange: Investor arranges for construction of improvements on the property before it is received as a replacement property

These are the same 1031 exchange services that First American Exchange and Old Republic Exchange offer.

Costs

Wells Fargo 1031 exchange costs include:

• 1031 Exchange Costs: Vary depending on the type, complexity and location of the exchange
• Wire Fees: Vary
• Expedition Fees: Vary

Wells Fargo offers several different types of 1031 exchange services that have different fee structures. They do offer discounted fees if you have a banking relationship with them, but they don’t go into detail about their specific fees on their site. Since they do offer more complex 1031 exchange services like reverse exchanges, you need to contact them to get a breakdown of their fees based on your type of exchange, property sales price, and location.

Insurance, Bonding & Experience

Wells Fargo is fully bonded and insured with liability insurance, including errors and omissions insurance for its 1031 exchange services. In addition, they only use in-house FDIC accounts to deposit the 1031 exchange funds from their investors. This is important because your funds are insured by this independent federal agency. They also have a dedicated team that focuses entirely on 1031 exchange services, and all of their services are backed up by the company.

What’s Missing with Wells Fargo

Wells Fargo is a reputable bank, but their sole focus isn’t on 1031 exchanges and they don’t offer title or settlement services. If you’re looking for a company whose sole focus is on 1031 exchanges, Wells Fargo probably isn’t for you. Wells Fargo is also missing a list of their 1031 exchange fees, which First American Exchange does a great job of highlighting.

Largest 1031 Exchange Intermediary: IPX 1031

IPX 1031 is the largest 1031 exchange intermediary because they have completed the most exchanges. IPX 1031 is similar to both First American Exchange and Old Republic Exchange because they are also a subsidiary of a major company, Fidelity National Finance Company. Fidelity is a major worldwide title company, so it gives their investors a sense of security. IPX 1031 is right for investors who are looking for the largest provider.

IPX 1031 Exchange Services

Out of all the best 1031 exchange companies on our list, they offer the most different types of exchange services. Just like Old Republic Exchange and First American Exchange, IPX 1031 also offers 1031 exchange services, title, and settlement services to investors, mortgage and real estate professionals.

Specifically, they offer the following services:

• Delayed Exchange: Gives investors up to 180 days from the time of selling their property to purchase a replacement property
• Simultaneous Exchange: The closing of the exchange and replacement property occur on the same day
• Reverse Exchange: Replacement property is purchased before the exchange property is sold
• Build to Suit or Improvement Exchange: Investor arranges for construction of improvements on the property before it is received as a replacement property
• Multiple Asset Exchange: Exchange of an asset that consists of both real and personal property (e.g., a farm)
• Airplane Exchange: Exchange one airplane for a replacement airplane
• Personal Property Exchange: Sell existing personal property and purchase more profitable or productive personal property

There are some more complex 1031 exchanges, like a built to suit exchange, which is when an investor builds improvements on a property before it’s a replacement property. IPX 1031 has a separate department with two offices that just deal with these complex types of 1031 exchanges.

Costs

IPX 1031 costs include:

• 1031 Exchange Costs: Vary depending on the type, complexity and location of the exchange
• Wire Fees: Vary
• Expedition Fees: Vary

IPX 1031 offers so many different types of 1031 exchanges and each one has its own costs. Unfortunately, due to the complexity of some of their transactions and the fact that they offer such a wide variety of transactions, they don’t offer price ranges on their site. You need to call and give the details of your potential 1031 exchange, and then you will receive specific costs based on the property’s value, type of exchange and location.

Insurance, Bonding & Experience

IPX 1031 has provided 1031 exchange intermediary services for over 20 years. They have regional offices and full-time staff, one-third of which are attorneys. They have a $100 million fidelity bond and a $30 million liability insurance policy, which includes errors and omissions insurance. They also have a written, third-party corporate performance guarantee that is supposed to ensure the security of their clients’ 1031 exchange funds.

What’s Missing with IPX 1031

IPX 1031 has a wealth of 1031 exchange knowledge and offers the most types of 1031 exchange services. However, they are very secretive about their pricing. This is similar to Old Republic Exchange, so once again, if you’re an investor who wants to do a quick price comparison, you can’t do it with IPX 1031. Instead, choose First American Exchange or Exeter, both of which provide prices on their websites.

Best Company that Offers a Free 1031 Exchange Consultation: Asset Preservation Incorporated

Asset Preservation Incorporated is the only company on the list, besides Wells Fargo, that offers a free 1031 exchange consultation. They were established in 1990 and like the other companies on the list, they offer 1031 exchange services. Asset Preservation Incorporated is right for you if you’re not sure if a 1031 exchange is right for you and you want a free consultation before making the decision.

Asset Preservation Incorporated Services

Asset Preservation Incorporated offers the fewest types of 1031 exchanges on our list. They also don’t offer title services and closing services like First American Exchange offers. However, their parent company has several construction- and agricultural-related companies under their umbrella so, for example, if your property exchange is farmland, that’s one of their specialties.

Asset Preservation Incorporated offers the following 1031 exchange services:

• Delayed Exchange: Gives investors up to 180 days from the time of selling their property to purchase a replacement property
• Reverse Exchange: Replacement property is purchased before the exchange property is sold
• Build to Suit or Improvement Exchange: Investor arranges for construction of improvements on the property before it is received as a replacement property

They also have a commercial department which specializes in the complexities of commercial property exchanges. Besides Wells Fargo, API is the only company on our list to offer a free consultation about completing a 1031 exchange, and they will answer your questions on the subject during this consultation.

Costs

The costs for 1031 exchange services offered include:

• Delayed Exchange: Relinquished property: $700 for the first property, $200 for each additional property, $300 for the first three replacement properties, and $200 for each additional replacement property
• Seller Carryback Note Handling Fee: $350

Asset Preservation Incorporated offers three different types of 1031 exchanges and their fees vary depending on the type of exchange, complexity of the deal, and the price of the property. They don’t offer prices for reverse and improvement/build to suit exchanges on their website. Because of the complexity of these types of exchanges, they’re reviewed on a case-by-case basis and if accepted, you will be given a price during your free consultation.

Insurance, Bonding & Experience

Asset Preservation Incorporated has over 28 years of 1031 exchange experience and has completed over 175,000 1031 exchanges in that time. They have a full-time staff of counselors, attorneys, and accountants, so the investor has their questions answered and each part of the exchange process goes smoothly. Like the other companies on our list, API maintains fidelity bond coverage and full coverage errors and omissions insurance.

What’s Missing with Asset Preservation Incorporated

If you’re an investor who has a complicated 1031 exchange or who wants to exchange personal property, multiple assets or something similar, Asset Preservation Incorporated probably isn’t the company for you. They deal mostly with delayed exchanges. For a more complex exchange, we recommend IPX 1031, since they offer the most types of 1031 exchanges.

Best Company that Specializes in Complex 1031 Exchanges: Exeter 1031 Exchange

Exeter 1031 Exchange is a nationwide 1031 exchange service provider that specializes in complex, sophisticated 1031 exchanges, which is the opposite of Asset Preservation Incorporated. They work with individual, corporate and institutional clients. Each client will receive a client account team that includes a senior advisor who can answer questions and make sure the process goes smoothly. If you’re an investor who has a complex 1031 exchange or who wants the personal attention of a client account team, then Exeter 1031 Exchange is right for you.

Exeter 1031 Exchange Services

Exeter 1031 Exchange offers full 1031 exchange services, which means they offer straightforward 1031 exchanges as well as the more complex reverse and improvement exchanges.

Their services include:

• Delayed Exchange: The most popular 1031 exchange, giving investors up to 180 days from the time of selling their property to purchase a replacement property
• Simultaneous Exchange: The closing of the exchange and replacement property occur on the same day
• Reverse Exchange: Replacement property is purchased before the exchange property is sold
• Build to Suit or Improvement Exchange: Investor arranges for construction of improvements on the property before it is received as a replacement property

These are the same services offered by both First American Exchange and Old Republic Exchange. They also offer advisory services as well as notary services, but they don’t offer other title or settlement services.

Costs

Exeter 1031 Exchange has the following costs:

• Delayed exchange: $700 – $1,800 per transaction
• Reverse exchange: $5,000-plus
• Improvement exchange: $5,000-plus

Like the other five companies on the list, Exeter 1031 Exchange offers different types of 1031 exchanges that have varying price points based on the transaction amount, location and type of exchange performed.

Insurance, Bonding & Experience

Exeter 1031 Exchange offers an Exeter Edge Performance Guarantee on each of their 1031 exchange transactions. This means that they will refund 100% of your 1031 exchange set-up fee if you’re not satisfied for any reason. All of their investor’s funds are deposited into a qualified trust account to protect them from bankruptcy filing and to keep them secure. They also have a $30 million dollar fidelity bond and a liability insurance policy that covers errors and omissions.

What’s Missing with Exeter 1031 Exchange

Exeter 1031 Exchange is great for dealing with complicated 1031 exchanges, but if you’re looking for a company that offers title and settlement services as well as 1031 exchange services, then Exeter 1031 Exchange isn’t right for you. Instead, check out First American Exchange, which offers title and settlement services.

Bottom Line

We reviewed various 1031 exchange companies and came up with a list of the six best for 2018. The companies made our list because of their good reputation, insurance and bonding, and extensive experience dealing with 1031 exchanges. We compared and contrasted them and ultimately chose First American Exchange as our best 1031 exchange company because of their industry experience and financial backing.