Every Exchanger Should Know.........
At a granular level, how your tax deferred exchange transaction is facilitated and whom you select as your Qualified Intermediary has never been more important. This is because the risk associated with exposing your personal and transactional data is the highest it has ever been. In fact, unless you as an investment property owner take special care to ensure that your data is safe within an encrypted environment, you can rest assured that information you want kept secret will only be a few keystrokes away from those with bad intentions.
In addition, the safety of how your hard-earned exchange proceeds are kept on deposit with your Qualified Intermediary should also be a concern. Because the tax deferred exchange industry is largely unregulated, you must make an extraordinary effort to ensure that your 1031 funds are safe and will be available when you need them. This is exactly why Fyntex does not commingle Exchanger deposits and instead places your proceeds in a trust account in your name and tax ID number.
Every investment property owner already knows that we all operate within a compromised digital environment where safeguards are required to ensure that your personal as well as transactional data is always kept secure. We were recently reminded that this reality extends to every tax deferred exchange transaction as well, when the two largest title company owned Qualified Intermediaries were closed down for a short period due to a ransomware attack. This caused incredible havoc, with all Exchangers being horrified to hear that their personal and trasactional data had been breached. Therefore, insist that your QI takes the security of your personal data as seriously as you do!
