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Finding the best 1031 exchange consultant is one of the most important decisions you make when you sell an investment property and reinvest through a like-kind exchange. The rules under IRC Section 1031 are strict, timelines are short, and qualified intermediaries (QIs) are largely unregulated at the federal level, which means you must do your own due diligence.

Below is an in-depth guide based on the topics investors most often search for and ask about when choosing the right 1031 exchange consultant.

Why the right 1031 exchange consultant matters

A 1031 exchange allows you to defer capital gains taxes when you sell an investment or business property and reinvest into another like-kind property. To preserve tax deferral, the IRS requires strict compliance with rules on property type, value, and timing, and, in most cases, the exchange must be structured through a qualified intermediary who prepares the documentation, holds the sale proceeds, and prevents you from having constructive receipt of the funds.

A skilled 1031 exchange consultant:

• Helps you decide whether a 1031 is appropriate for your situation
• Coordinates with your QI, tax advisor, and attorney
• Guides you through replacement property options (including DSTs and other structures, when suitable)
• Keeps your exchange on track with timelines and documentation

Because mistakes can disqualify the exchange and trigger immediate taxes, investors naturally focus on finding a consultant they can genuinely trust.

1. Clarify the consultant’s role vs. the Qualified Intermediary

One of the first topics investors search for is “Do I need a consultant, a QI, or both?”

A QI (qualified intermediary):

• A third party actually structures the exchange, prepares the exchange documents, and holds your proceeds until you close on the replacement property.
• Cannot be your agent, attorney, CPA, or a related party under IRS rules.

A 1031 exchange consultant or advisor typically:

• Educates you on how exchanges work and whether a 1031 fits your goals
• Helps you evaluate replacement property options, such as direct real estate or Delaware Statutory Trusts (DSTs)
• Works alongside your QI, CPA, and attorney as part of your “1031 dream team.”

When interviewing firms, ask them to explain clearly:

• Whether they serve as QI, consultant, or both
• Where their legal responsibilities begin and end
• How do they coordinate with your tax and legal advisors

You want transparency from the start, so there’s no confusion about who is doing what.

2. Prioritize deep 1031 experience and a strong track record

Searches like “best 1031 exchange consultant near me” and “questions to ask a 1031 intermediary” almost always lead to the same advice: experience matters.

Key points to evaluate:

• Years in business and number of exchanges completed. Investors are often urged to look for firms that have handled many exchanges across market cycles, property types, and structures.
• Types of exchanges handled. Ask about simple delayed exchanges, reverse exchanges, construction/improvement exchanges, and DST-based exchanges.
• Experience with your kind of property. If you’re exchanging multifamily, net-lease retail, or fractional DST interests, you want a consultant who has seen those specific structures many times before.

Practical questions to ask:

• How many 1031 exchanges did your team help complete last year?
• What kinds of properties and deal sizes do you handle most often?
• Have you worked with investors whose situations look like mine?

3. Check regulatory knowledge and professional credentials

Because 1031 exchanges sit at the intersection of tax, real estate, and securities law, investors frequently ask, “How do I know this consultant really understands the rules?”

Look for:

• Up-to-date knowledge of IRS and state rules. Leading resources emphasize the importance of a QI or advisor who stays current with changing guidance, audit trends, and state-level requirements.
• Professional credentials and affiliations. Many experts suggest looking for:
  • Federation of Exchange Accommodators (FEA) membership or Certified Exchange Specialist® (CES®) for QIs
  • FINRA-licensed reps and registered investment advisers, when you’re evaluating a firm that recommends DSTs or other securities-based 1031 strategies

Ask directly:

• What training or certifications does your team have specifically in 1031 exchange work?
• How do you stay current with IRS changes and state regulations?
• Are you or your affiliates subject to any regulatory oversight (e.g., FINRA, SEC, state securities regulators)?

4. Focus on the security of funds and risk management

One of the most common and essential concerns investors have is: “Is my money safe?”

Several industry sources stress that most QIs are not federally regulated, and a few high-profile failures have shown what can happen when intermediaries mishandle or commingle client funds.

When you evaluate a consultant and the QIs they recommend, dig into:

• Escrow structure. Best practice is to use segregated, insured escrow or trust accounts—not commingled operating accounts—for exchange proceeds.
• Fidelity bonds and crime coverage. Ask whether the QI carries fidelity bond coverage to protect against theft or embezzlement and whether that coverage is per-occurrence rather than aggregate.
• Errors and omissions (E&O) insurance. Many checklists specifically recommend verifying E&O coverage and policy limits.
• Internal controls. Good QIs and consultants have written procedures for approving disbursements, dual controls on wire transfers, and regular audits.

Ask for documentation. A serious firm will be ready to provide summaries of its insurance, bonding, and safeguarding practices.

5. Demand transparency in fees and potential conflicts of interest

Another heavily searched topic is “1031 exchange fees” and “how does my intermediary get paid?”

Guides consistently warn investors not to pick a QI or consultant solely based on the lowest fee. The tax deferral at stake is often far larger than any small savings on transaction costs.

Questions to cover:

• What is your basic fee for a standard delayed exchange? Are there separate fees for each replacement property, wire transfers, or complex structures?
• How are you compensated if you recommend DSTs or other investments? Do you receive commissions, placement fees, or revenue sharing from product sponsors?
• Are there any ongoing asset-management or advisory fees?

Request a written summary of all compensation so you understand precisely how the firm earns money and where any conflicts may exist.

6. Evaluate the quality of advice and education

Investors often say they want more than just a “form-filler.” Searches like “1031 advisor who explains everything” or “someone to walk me through 1031 exchange” reflect how valuable clear communication is.

A strong 1031 exchange consultant should:

• Take time to understand your whole situation, including your goals for cash flow, leverage, risk tolerance, and estate planning.
• Explain the pros and cons of using a 1031 vs. simply selling and paying tax, including the impact on basis, depreciation, and future flexibility.
• Lay out different replacement strategies (direct property, DSTs, other structures) and help you weigh their potential returns, risks, and liquidity.

Pay attention to how they communicate:

• Do they speak in plain language and answer questions patiently?
• Are they willing to say “no” when a 1031 isn’t in your best interest?
• Do they push a specific product too quickly, or do they start with your goals?

7. Look for strong service, timelines, and process management

Because 1031 exchanges operate on strict deadlines—generally 45 days to identify replacement property and 180 days to close—investors naturally ask, “Will this firm keep me on schedule?”

When interviewing consultants:

• Ask how they help you plan before you close on your relinquished property. Find out how they track deadlines and keep you informed.
• Clarify how quickly you can expect responses to calls and emails, especially when you’re approaching an identification or closing deadline.

A good consultant will have a straightforward process and will be proactive, not reactive, about the calendar.

8. Verify reputation, references, and online reviews

Another top topic is “best 1031 consultant reviews.” Investors want to know who others trust.

Useful steps:

• Check whether the firm or QI has testimonials, case studies, or professional references they can share.
• Look for industry affiliations, conference speaking, or educational content that shows peers recognize them.
• Search for disciplinary history if the advisors are securities-licensed or registered investment advisers.

Online reviews are not perfect, but they can show patterns in communication style, professionalism, and follow-through.

9. Make sure they fit with your broader advisory team

Most credible guidance emphasizes that your CPA, attorney, and financial planner should be involved in any major 1031 decision.

When evaluating a consultant:

• Ask how they usually work with clients’ existing professionals.
• Make sure they are willing to collaborate, not replace, your tax and legal advisors.
• Confirm that everyone agrees on the structure and suitability of the exchange before you close your sale.

You want a consultant who fits smoothly into your existing advisory ecosystem, not one who works in a silo.

10. A practical checklist for choosing your 1031 exchange consultant

Putting all of these topics together, you can use a simple due diligence checklist:

1. Role and structure – Do I clearly understand whether they’re acting as a consultant, QI, or both, and where their responsibilities begin and end?
2. Experience – Do they have a long, successful track record with the type of exchange and property I’m planning?
3. Credentials and knowledge – Are there tangible signs of 1031 expertise, like FEA membership, CES® designation, securities licenses (if applicable), and ongoing education?
4. Security of funds – Does the recommended QI use segregated, insured accounts, strong internal controls, fidelity bonds, and E&O insurance? Have I seen proof?
5. Fees and conflicts – Are all fees and compensation structures disclosed in writing, including any commissions from investment products?
6. Advice quality – Do they focus on my goals and suitability, not just on selling a product or pushing a quick transaction?
7. Service and communication – Are they responsive, organized, and proactive about timelines?
8. Reputation – Do references, reviews, and other professionals I trust speak highly of them?

If a firm scores well on all eight points, you’re likely dealing with a strong candidate.

Why do many investors work with specialized firms like GCA 1031?

Once you understand what to look for, the next step is to choose a specific partner. Many investors ultimately prefer a firm that focuses on 1031 strategies every day rather than treating exchanges as a side business.

A specialized 1031 exchange consulting firm, such as GCA 1031, can:

• Help you decide whether a 1031 exchange is appropriate for your situation based on your goals for income, leverage, and legacy.
• Coordinate with qualified intermediaries that use strong safeguards for client funds and provide the necessary documentation.
• Guide you through potential replacement options—including DSTs and other institutional-quality offerings when suitable—and help you understand the risks, likely returns, and liquidity profile of each.
• Work closely with your CPA and attorney so that your exchange is structured and reported correctly.

When you combine your own due diligence with a specialized advisor like GCA 1031, you’re far better positioned to complete a compliant exchange, protect your capital, and align your new property (or DST portfolio) with your long-term financial strategy.

Final thoughts

Finding the best 1031 exchange consultant is really about stacking the odds in your favor: the right experience, the proper safeguards, the right advice, and the correct alignment with your goals. Use the topics and checklist above as your roadmap when you interview potential firms.

If you want a team dedicated to a 1031 strategy that can walk alongside your tax and legal advisors from planning through closing, GCA 1031 is a strong option to consider as your consulting partner.