Using a Qualified Intermediary (QI) is crucial for a successful 1031 exchange because, while the process itself is straightforward, the rules are complex and fraught with potential pitfalls for the exchanger if not prepared correctly. To highlight the challenges of selecting a qualified intermediary, let's identify parties who cannot act in this capacity. This includes related parties, as defined in I.R.C. § 267(b) or 707(b)(1), agents who have provided services to the taxpayer within the two-year period before the exchange, and other individuals or entities with shared ownership. 

Therefore, when selecting a Qualified Intermediary (QI) for your 1031 Exchange, it is vital to conduct due diligence to ensure a successful exchange. Here are just a few factors that set us apart:

1. Experience
   Our team of professionals have been actively involved in real estate, trust administration and 1031 exchange transactions since 1978. 

2. Qualified Professionals, Attorneys, CPAs, and Certified Exchange Specialists® on Staff
   Working with us, you will have access to five staff attorneys, one Certified Public Accountant (CPA), and five Certified Exchange Specialists® on staff. CES® is a designation developed by the FEA and obtained only after years of experience, qualification and testing, on staff and more in training.

3. Safety and Security of Exchange Funds
   Our partnerships utilize depositary banks uniquely situated to provide for the safety and security of exchanger funds, all funds are held in segregated bank accounts. Additionally, we have the ability to provide dual signature accounts requiring exchanger approval before the movement of exchanger funds. It also has the ability to provide qualified trust and escrow accounts to further protect deposits.

4. Fidelity Bonding and E&O Insurance
   Apex Exchange Group, LLC meets all best practices and state regulatory requirements for fidelity bonds and errors and omission coverage.

5. Patented 1031 Exchange Technology
   Patented 1031 software, Exchange Manager ProSM, keeps clients and advisors informed of transaction timelines, funds available, and other pertinent information throughout the 1031 exchange.  Our unique process provides a standardized workflow with automated deadline reminders and document creation increasing efficiencies and reducing the potential for errors throughout the 1031 exchange process.