Deferred

Deferred is a forward-thinking financial technology company that serves as a Qualified Intermediary (QI) for real estate investors undertaking 1031 exchanges. The company is fundamentally reshaping the industry with its innovative "No Fee" business model. Unlike traditional intermediaries that charge significant fees and often keep the interest earned on client funds, Deferred allows clients to earn interest on their exchange proceeds, creating a more equitable and profitable experience. With a team boasting over 100 years of collective experience and a track record of over 7,000 successful exchanges, Deferred combines deep industry expertise with cutting-edge technology to deliver a secure, seamless, and transparent service.

How to use Deferred

The process of initiating and completing a 1031 exchange with Deferred is designed for simplicity and efficiency, broken down into three clear steps:

1. Start Your Exchange with Deferred: Before closing the sale of your property, contact Deferred to begin the process. There are no fees to open an exchange, making it a risk-free first step. Their team will prepare all the necessary documentation to ensure compliance.
2. Complete Your Exchange Smoothly: Deferred's experienced exchange officers provide guidance at every stage. They help you navigate the strict timelines for identifying a replacement property (45 days) and closing the purchase (180 days), ensuring a smooth and compliant transaction.
3. Close & Earn Interest: Upon successfully closing on your new property, Deferred provides a comprehensive 1031 package for your CPA. Crucially, all the interest your funds have earned during the holding period is transferred directly to you. This allows you to continuously defer taxes and build wealth with each subsequent exchange.

Core Features of Deferred

• No Fee Exchange Model: For standard forward exchanges, Deferred charges no direct fees. Their revenue is generated from a share of the interest earned on client funds, aligning their success with the client's.
• Interest Earning on Exchange Funds: Client funds are held in secure, interest-bearing accounts at leading commercial banks, allowing investors to generate a return during the exchange period.
• ARTE: AI Tax Assistant: Deferred offers ARTE (Advanced Real estate Tax Expert), a sophisticated AI chatbot. It provides instant, accurate answers to complex 1031 exchange and tax questions, having been benchmarked to outperform human CPAs.
• Top-Tier Security of Funds: Security is paramount. Deferred provides up to $175M in FDIC insurance, a $5M fidelity bond, and $5M in errors & omissions insurance—far exceeding industry standards. Funds are held in segregated accounts with strict security protocols.
• Expert Team & Comprehensive Support: The team consists of seasoned real estate attorneys, CPAs, and 1031 exchange specialists who can handle even the most complex transactions, including Reverse and Improvement exchanges.
• Seamless Digital Platform: The service is powered by a modern, intuitive, and scalable platform that streamlines workflows and enhances the customer journey from start to finish.

Use Cases for Deferred

Deferred is ideal for a wide range of real estate investors and professionals:

• Individual Real Estate Investors: An investor selling a rental property can use Deferred to roll the proceeds into a new, larger property without paying capital gains tax, while also earning interest on their funds during the exchange period.
• Commercial Property Owners: A business owner selling an office building or warehouse can utilize a 1031 exchange to acquire a different commercial property, deferring significant tax liabilities and preserving capital for growth.
• Investors in Complex Transactions: For investors needing a Reverse Exchange (buying a new property before selling the old one) or an Improvement Exchange (using funds for construction), Deferred's expert team provides the specialized support required.
• CPAs, Attorneys, and Realtors: Professionals can confidently recommend Deferred to their clients as a secure, cost-effective, and modern solution for 1031 exchanges, enhancing client trust and delivering better financial outcomes.

Advantages of Deferred

The primary advantages of using Deferred are financial efficiency, security, and expert support. The "No Fee" model eliminates a major cost associated with 1031 exchanges. The ability to earn interest turns a mandatory holding period into a profitable one. The platform's security measures, including extensive FDIC insurance and bonding, offer unparalleled peace of mind. Furthermore, the combination of an experienced human team and an AI-powered tax assistant ensures that clients receive accurate, timely, and comprehensive support throughout a complex process.

Pricing and Plans

Deferred offers a transparent and value-driven pricing structure:

• Standard Forward Exchange: $0 Fee. Clients earn interest on their exchange funds held with Deferred. This is the core offering for most 1031 exchanges.
• Reverse Exchange: Starting at $5,999. This plan includes specialized support and entity creation for more complex exchanges where the replacement property is acquired before the relinquished property is sold.
• Improvement Exchange: Starting at $5,999. This plan provides step-by-step assistance for construction or improvement exchanges, where exchange funds are used to improve the replacement property.