The 1031 exchange has been a wealth building staple for decades, but most real estate investors and even many seasoned brokers have no idea how much money is quietly earned by 1031 Qualified Intermediaries.
Most assume the 1031 exchange costs around $1,200 in fees. At least that’s what the invoice says.
But the real cost is hidden: it’s the interest Qualified Intermediaries earn by holding clients’ funds—interest they often keep entirely for themselves.
It’s not unusual for a Qualified Intermediary to earn tens of thousands of dollars just in interest from their client’s exchange funds. On a $5M transaction held for 90 days, that can mean over $50,000—none of which is required to go to the client or the broker who worked the transaction.
Layer on the standard exchange fee, and it’s no wonder most investors (and many seasoned brokers) never realize how much money quietly slips away.
It’s the industry’s open secret. And Deferred (www.deferred.com) is here to end it. They believe in something better: a model that eliminates fees, returns interest to the investor, and pays brokers for helping their clients make smarter moves.
And now, Deferred has brought some of the country’s top commercial brokers to the table to help shape the future.
Why Brokers Love Deferred
With Deferred, investors pay no exchange fees— the interest generated by their funds covers the cost. On larger exchanges, Deferred pays up to 2.5% interest back to the client. It’s simple, transparent, and free of hidden fees or surprises.
When brokers introduce Deferred, it’s not just about putting thousands back in their clients’ pockets. It’s about making exchanges simpler and fee-free. Brokers using Deferred close more repeat business, unlock more value for their clients, and build deeper trust.
“Like most other facets of Real Estate the 1031 and Qualified Intermediary models are woefully devoid of modern technology and still haven’t met with modern Real Estate Prop-Tech advances. Deferred is the no fee, transparent, user friendly solution which will undoubtedly be the go to concern for all things QI and 1031. In 1,026 closings over 20 years as a broker and six as a lawyer, I wish deferred was around years ago because it is tomorrow’s blueprint.”
– David Schectman, Senior Executive Managing Director, Meridian Capital Group
Of course, none of that would matter if Deferred couldn’t protect every dollar and deliver a 10-star customer experience to every client. So they engineered Deferred from the ground up to deliver on all fronts:
An online platform that keeps their team aligned with brokers, clients, and escrow officers in real time, reducing friction and avoiding costly mistakes.
An experienced team that’s facilitated 7,000+ exchanges, always ready to jump in when a deal needs it. Seriously, they’re open 7 days a week.
Unmatched security, with funds held in fully segregated, FDIC-insured accounts and never co-mingled. They are bonded and insured at 5x the required amounts.
Introducing Deferred’s Broker Advisory Board
To build a better exchange experience, Deferred is listening closely to the people closest to each transaction: real estate brokers. To keep delivering on their vision, Deferred has recruited some of the country’s up-and-coming top producers directly to the team through their Broker Advisory Board.
This group of nine standout professionals is helping Deferred build the best platform for brokers and their clients — shaping tools and processes that make 1031s even more transparent, secure, and broker-friendly. Together, they represent tens of billions in deal volume, coast-to-coast expertise, and a shared frustration with how opaque and outdated the 1031 space has become.
David Altman
Managing Director, National Hospitality Division, Marcus & Millichap – Florida
Leads the Altman Hotel Group, which specializes in advising hotel owners and investors on the acquisition, disposition, and valuation of hospitality real estate across the country.
Anne Dempsey
Executive Vice President, Colliers – Illinois
Specializes in complex land transactions, distressed asset sales, strategic site acquisition, entitlement advisory, and disposition services for developers, investors, and institutional clients nationwide.
Max Freedman
Managing Partner, Sands Investment Group – Texas
Helped guide Sands Investment Group’s expansion to a national powerhouse across 48 states.
Jake Glaser
Vice President, Lyon Stahl Investment Real Estate – California
Leading commercial real estate agent specializing in multifamily investment sales in Los Angeles.
Jason Gribin
Co-Founder & Managing Partner, AiCRE Partner – California
Co-founded AiCRE Partners, focusing on net-leased investment properties and providing transaction representation and capital advisory services nationwide.
Joseph Koicim
Executive Managing Director, Marcus & Millichap – New York
Top-producing investment sales broker in Marcus & Millichap’s Manhattan office and a founding partner of the New York Multifamily Group, specializing in multifamily and mixed-use assets.
David Schechtman
Senior Executive Managing Director, Meridian Capital Group – New York
Leads the Middle Market Team of Meridian Investment Sales and is widely recognized as one of the industry’s most visible and well-respected investment sales professionals.
Will Wamble
Executive Vice President & Principal, SRS Real Estate Partners – Florida
Specializes in the advisory and sale of net-leased properties nationwide with more than $1 billion worth of transactions completed in his career.
Allison Yazdian – California
Former SVP and Head of Growth, Compass
Led revenue growth at Compass, managing teams across sales, marketing, ops, and GTM, driving new products and market expansion.
Working with top brokers to drive more 1031s
Today, fewer than 10% of eligible real estate sales take advantage of a 1031 exchange. Given the massive benefits and potential wealth that can be created, why do so few end up taking advantage of one of the greatest tax strategies available?
Because most investors don’t understand 1031s, they’re overwhelmed, and the $1,200 fee is just enough for them to say no.
Deferred believes that more investors would take advantage of 1031s—and brokers would close more deals—if doing a 1031 was actually easy, transparent, and profitable for everyone.
“Our goal is simple: Make Deferred the obvious choice for any investor doing a 1031. Deferred is building the future of 1031 exchanges with top brokers, for top brokers. — Judd Schoenholtz, CEO, Deferred
With their new Broker Advisory Board guiding product and policy, they’ll keep replacing hidden costs with shared upside and turning hesitant sellers into lifelong clients.