Highlight your expertise.

Integrating 1031 highlights your brokerage's expertise in selling real estate, and completes your offering of a fully-comprehensive sales experience to sellers. By understanding how to structure a tax-free sale, sellers are more motivated to list and sell, and are more inclined to feel that all of their needs were addressed by the company handling their sale - It's not just the sales price that counts; it's what sellers keep of the sale proceeds. Just as selling for top-dollar, or offering a reduced brokerage fee puts more money in a consumer's pocket, so does a 1031 exchange.

Supercharge testimonials and referrals.

Since tens or even hundreds of thousands of dollars in tax savings that would otherwise not be known to a client can be realized by a short consultation in a professional, streamlined manner, the educational heads up will be rewarded with client word of mouth and referral.

Cut liability and save clients thousands.

It also shows that your brokerage cares about the financial well-being of its' clients. Not only does this build brand trust and loyalty, but it curbs liability that could be incurred if a client lost hundreds of thousands of dollars to a tax bill that could have been avoided had they been notified by their real estate company. People who potentially qualify for these savings are sellers of:

Single family rentals, including Airbnb/VRBO use property

Multi family rentals (duplexes, tri-plexes, 4-plexes)

Commercial real estate

Second homes and Vacation properties (if use-requirements are met)

Primary residences where taxable gain is above $250,000 (for single people) or $500,000 (for married couples) and the property has a business use like a home office or Airbnb/VRBO use Primary residences that are involved in a divorce where one party has moved out and declared a new primary residence

Plug in a 50% profit margin business at no cost.

Your brokerage can offer a fully-comprehensive sales experience to sellers by bringing 1031 to the table, and can create a 50% profit-margin business out of thin air by plugging into 1031 Exchange Advantage ?.

1031 Exchange Advantage is a 1031 accommodator/qualified intermediary, as required by the IRS to facilitate IRC Section 1031 transactions.

Owned by a former closing attorney (with over 35 years of experience), 1031 Exchange Advantage ® is one of the largest independent 1031 accommodators in the nation, and has been in business since 1977. We offer unlimited, freeconsultations to clients throughout the exchange process, and have never had a claim for misappropriated funds or wire fraud.

Our proprietary back-office processing system for handling 1031 exchanges allows us to operate at a profit margin 4-5x the industry average. This profit margin makes us the only qualified intermediary in the country that can pay such a large revenue share (50%) to referring brokerages. We are also the only qualified intermediary in the country with a patent-pending on our wire-fraud reduction protocols that involve a series of double and triple checks between us, our clients, and the title/escrow companies handling a closing.

In the past we have been preferred vendor to some of the largest brokerages in the world: Prudential Douglas Elliman in New York and Prudential California Realty (now Berkshire Hathaway California Properties). More recently, we have brought this expertise successfully to major real estate portals like Hubzu and OwnAmerica, traditional Brokerages like Keller Williams in Los Angeles and Pacific Sotheby's in San Diego, and discount brokerage firms like Reali, ListWithClever.com, and Houwzer.

The monetary upside is an average revenue share of roughly $800-$1000 per exchange (50% of the revenue generated from the exchange), and more than one in four properties sold each year qualify to be exchanged.
Other upsides are:

Bring tens or hundreds of thousands of dollars in tax savings to light for clients that would not have known of them otherwise.

- Increase brand loyalty and positive client feedback for finding these savings for clients.

Further establish your brokerage as a consumer-focused, fully comprehensive real estate company.

Cut liability by bringing up these tax options when applicable.

Increase your offering for investor-clients and further monetize that offering.

Attract new sellers by showing them how to save thousands in taxes on their sale. Encourage purchase transactions in addition to encouraging sales due to 1031's mandated reinvestment requirement (within 6 months of the sale).

Yes! - New Seller Leads
Generate additional seller leads by targeting investors (more than 25% of the real estate market) and utilizing a Sell Tax Free message as outlined above. By targeting the buckets of prospects outlined above, your brokerage can target its' marketing efforts even further, and be able to provide more comprehensive service if it elects to target investors specifically. Non- traditional investors still qualify in many situations (also outlined above) but often are not aware that they qualify.

Yes! - New Buyer Leads
Furthermore, 1031 requires the purchase of real estate of equal or greater value within six months of the closing of the client's sale - thereby making 1031 inherently create buy-side leads as well!

Yes!
We have created two sales tools for brokers and agents to show consumers the value of exchanging. The tools act as eye-openers and motivators that start a conversation about selling.

1. Our Interactive Tax-Calculation Slider
The slider shows sellers how much their approximate taxes will be: how big is the problem?

2. Our Equity Evaluation Tool
This tool shows investors how the cash equity that they have in a property could be put to better use by selling with a 1031 exchange, and reinvesting into new investments that make them more money per month, and better serve their lifestyle needs. By presenting these tools to consumers, you focus them on a problem and offer them a solution, motivating them to list, sell, and reinvest, while positioning yourself as a true real estate expert.

Even if a client doesn't qualify for an exchange, a bad 1031 lead is still a great listing lead!