The Good, The Bad, and The Ugly on 1031 Exchanges....

Recent articles have appeared in the news about 1031 exchanges, and how some Accommodators have abused their clients by stealing their money. But there’s more to the GOOD than just the BAD and the UGLY:

THE GOOD: The 1031 Exchange Experts have taken additional steps to ensure the safety and security of clients’ money and exchanges.

THE BAD: The 1031 industry is unregulated.

And THE UGLY: Many QIs have abused this business and their clients for millions of dollars.

For 17 years, Gary Gorman has invented ways to keep his exchange investors’ funds safe and secure. He’s implemented these safety features into his company, The 1031 Exchange Experts:
1. The 1031 Experts do not commingle any monies:
• Every Expert-Exchange account is kept separate and segregated. By that, we mean SEPARATE from the firm’s assets, and SEGREGATED from other clients’ assets. Why? Because in bankruptcy proceedings of the ‘Ugly’ QIs, the courts have allowed the clients’ commingled money to be used to satisfy creditors! With separate and segregated accounts at The Experts, we’ve reduced that danger as a possibility.
2. Every Expert-Exchange account has the CLIENT’S NAME on it – with their Social Security number or TIN – NO ‘sub-accounts.’
• Why? Because some QIs are part of big (title) companies and are not fully transparent. They use ‘sub-accounts’ which give the appearance of non-commingled accounts.
• Or, they say commingling doesn’t matter because of their size. They say they're to big to fail. Really?! Bigger than Enron? WorldCom? Bear Stearns? IndyMac? How about the latest melt-downs of Wachovia, WaMu, Countrywide, Citigroup, or even Freddie Mac and Fannie Mae (just to name a few!)? Size doesn’t matter here; separate, segregated and secure accounts DO!
3. Every Expert-Exchange account is kept at an FDIC-insured bank in an escrow trust account. Every bank we use is carefully screened and is reputable.
4. Transparency:
• Every Expert-Exchange account can be viewed 24-7 BY THE CLIENT through 1031Access™, our password-protected, user-ID-secure web portal. Just as you go online to look at your checking account, 1031Access™ lets our client-investors see their account.
• Every 1031 Expert client’s exchange proceeds STAYS in the bank’s escrowed trust accounts and remains fully liquid during the course of their exchange. They are never “invested” anywhere else.
5. Every Expert-Exchange is bonded for up to $5 million per occurrence. The Experts carry E&O insurance as well.
6. Every Expert-Exchange account can be set up with DUAL SIGNATURES so that two signatures, the clients and the QI's, are required to take money out of the exchange account.

So THE GOOD is that The 1031 Exchange Experts are putting an end to THE BAD and THE UGLY. 1031 Expert’s founder Gary Gorman, an authority on 1031 safety, is often interviewed when reporters from Fox News, The New York Times, The Wall Street Journal, et. al., do a story on the Bad and the Ugly in the industry. In fact, Gary is a major advocate and expert on recently proposed Colorado state legislation that addressed these issues.

So until regulation changes the industry, choose a QI that has the reputation for doing it right for years: choose the GOOD guys!

--The Experts