Commercial real estate developers are increasingly using the EB-5 program as a way of raising capital for their development projects and entrusting NES Financial’s leading EB-5 Escrow and Fund Administration Solutions to streamline the process. When it comes to EB-5, we are the leaders in providing effective solutions designed specifically for the industry. Our team of experts continuously receives recognition from clients for being knowledgeable, responsive, and dedicated to each individual transaction that they perform. What you may not know is that our company began in the 1031 exchange industry, and as with EB-5, we are the industry leader in providing solutions for 1031 exchanges. Last year alone NES Financial processed more than $85 billion in 1031 exchanges.
Whether it’s an EB-5 project or a 1031 exchange, each industry has similar requirements when it comes to our services. The need for funds security, transparency, and compliance are crucial to both an EB-5 project and a 1031 exchange.
A 1031 exchange is a great way to defer taxes by allowing you to sell property and also buy “like-kind” property within 180 days after the sale of your existing property. There are several different types of 1031 exchanges – forward, reverse, and program – that can be used across a variety of industries, including commercial real estate, aviation, oil & gas, and more. Most 1031 exchangers utilize a Qualified Intermediary to facilitate the exchange in order to help ensure tax compliance. Choosing a Qualified Intermediary such as NES Financial could make the difference between a successful exchange and an unsuccessful one.
With a 1031 exchange, it is very important for the Qualified Intermediary (QI) to keep your funds in a segregated account, as to not commingle them with other funds. 1031 exchangers should also know where there funds are at all times, with proper controls in place to avoid a failed exchange and loss of hard-earned money. Like EB-5, the 1031 exchange industry is governed by complex rules and regulations that must be followed to achieve success.
Our experience and expertise facilitating a wide range of 1031 exchanges is unparalleled. In fact, our General Counsel helped develop significant 1031 guidance during her tenure at the IRS National Office in Washington, D.C. Choosing NES Financial as your QI could make the difference between a successful exchange and an unsuccessful one.
NES Financial welcomes your questions and opinions. Allow us to address your business needs by contacting us. We look forward to hearing from you!