1031 Exchange Intermediary

We help consults and serve as a qualified intermediary for a 1031 tax-free exchanges, including more difficult structures resulting from partnerships, lease buy-backs, and other complex structures.

Our Capabilities

A qualified intermediary specialist in 1031 exchange proceeds, including more difficult structures resulting from partnerships, lease buy-backs, and other complex structures. 1031 exchanges are where the sale of the like-kind property is exchanged without immediate tax liability to the property owner. 1031 Exchanges are most commonly used for real estate transactions but can include other depreciable assets.

  • Forward transactions
  • Complex transaction experts
  • An industry leader in security and transparency
  • Forward Exchanges
    • Old or relinquished property is sold and closed before the replacement, or new property is purchased and closed
    • Most common form of exchanges

Building with lights turned on


Complex Exchanges

The Strategic Group specialize in complex exchanges. These types of exchanges require a high degree of expertise and experience. Some typical structures include:

Reverse Exchanges

Two types of reverse exchanges

  • Reverse Exchange First, Reverse Exchange Last
  • The transaction must be completed within 180 days

Construction Exchanges

  • Once construction has been completed, the property is transferred to the taxpayer as the replacement property
  • Taxpayer wishes to acquire land and construct ideal replacement property

Harbor Exchanges

  • Considered exchanges that did not follow the safe harbor guidance, which was memorialized in its “no inference” language

Construction Leasehold Exchanges

  • Replacement property is constructed upon land already owned by a party related to the taxpayer via a leasehold arrangement
  • A taxpayer may not take title to the leasehold improvements while being completed

Partnership Exchanges

  • Partners often wish to perform an exchange but discontinue the partnership relationship when selling real estate. There are several methods that all require significant planning and preparation

Security & Transparency

The Strategic Group is an industry leader in security and transparency of clients’ 1031 proceeds.

Dual Signature Authorization

  • Our firm established the first dual authorization signature requirement for 1031 exchanges
  • Both strategic advisors and the client must authorize the release of funds
  • Many exchanges do not have this level of security embedded in their process

Segregated Accounts

  • Proceeds from a client’s sale are kept in segregated accounts to ensure their safety and security
  • Clients have the transparency to view the account at anytime
  • Many exchanges will co-mingle funds in a general account

Qualified Trust or Escrow

  • Strategic advisors offers the option for funds to be held in a qualified trust or escrow with other financial institutions
  • Many exchanges offer limited flexibility of where funds are kept

Have questions about your investment property? Contact us before selling and we can help walk you through the process.

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