<p paraeid="{cadb2238-53db-4ffe-b358-4f3eaf31de41}{181}" paraid="964088613">Accruit’s 1031 Exchange platform, <a href="/managed-service" title="Managed Service 1031 Exchange Platform for Title Companies to Offer 1031 Exchange Services">Managed Service</a>, allows companies within the real estate industry to offer 1031 Exchange services, in addition to their primary business. Offering “In-house” 1031 Exchange services allows you to capture the revenue that you are currently referring away to your competitors, as well as accelerate growth for the primary business, such as title work for title and escrow companies.&nbsp;&nbsp;</p>

<p paraeid="{cadb2238-53db-4ffe-b358-4f3eaf31de41}{187}" paraid="1852578004">One might ask, how does offering 1031 Exchange services help generate more title work? There are a couple of ways in which Managed Service, the 1031 Exchange platform, has proven to grow title work.&nbsp;&nbsp;</p>

<ol role="list" start="1">
<li aria-setsize="-1" data-aria-level="1" data-aria-posinset="1" data-font="" data-leveltext="%1." data-list-defn-props="{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" data-listid="1" role="listitem">
<p paraeid="{cadb2238-53db-4ffe-b358-4f3eaf31de41}{213}" paraid="959064476"><strong>Retain Existing Clients, Stop Referring Them Out to Competitors&nbsp;</strong></p>
</li>
</ol>

<p style="margin-left: 50px;">As a title company, if you do not offer “in-house” 1031 Exchanges services and you come across a client needing a Qualified Intermediary (QI) there is a good chance you might refer them to Exchange Companies that are subsidiaries of your competitors.&nbsp;&nbsp;</p>

<p style="margin-left: 50px;">Once that referral is made, the chances of the referring title company earning the title work on future real estate transactions for that client is greatly reduced. All consumers prefer the path of least resistance, and the most efficient means to an end. If the QI handling the 1031 Exchange has an “in-house” title department, they are going to recommend that service to their Exchanger - you may be saying good by to future closings.&nbsp;</p>

<p style="margin-left: 50px;">Let’s look at this scenario closer. The national average fee for title work is roughly $3000 per real estate closing. Every 1031 Exchange must have at least one Relinquished Property sale and one Replacement Property sale. That’s $6000 in title work per 1031 Exchange. If the title company offers 1031 Exchange services through Managed Service, they have secured an additional $3000 in title work with a valid 1031 Exchange. However, if they do not and they recommend an Exchange Company with a title department for the 1031 Exchange, they may miss out on the $2000 Replacement Property transaction.&nbsp;</p>

<ol role="list" start="2">
<li aria-setsize="-1" data-aria-level="1" data-aria-posinset="2" data-font="" data-leveltext="%1." data-list-defn-props="{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" data-listid="1" role="listitem">
<p paraeid="{cadb2238-53db-4ffe-b358-4f3eaf31de41}{245}" paraid="1352590632"><strong>Utilize 1031 Exchanges to Generate More Title Work&nbsp;</strong></p>
</li>
</ol>

<p style="margin-left: 50px;">Offering 1031 Exchange services through Managed Service provides the title company an inside track to upcoming real estate transactions. As an Exchanger, not only are they disposing of at least one property, they must acquire at least one more property for a valid exchange. Right there you have a second real estate transaction. Many 1031 Exchanges involve multiple properties on either side of the exchange, resulting in even more title work.&nbsp;&nbsp;</p>

<p style="margin-left: 50px;">The opportunities don’t stop there. 1031 Exchange documents, included in the closing paperwork, not only include the Buyer’s and Seller’s details, but also their real estate agents’ details. Exchange documentation is a great prospecting tool, with a built-in “sale pitch.” Depending on the property type and intent, there is a good chance the Buyer or Seller might also be interested in participating in a 1031 Exchange.&nbsp;&nbsp;</p>

<p style="margin-left: 50px;">Let’s put the above scenario into practice. As a Managed Service facilitator offering 1031 Exchange services, your client is participating in a 1031 Exchange, and you are handling the closing of their Relinquished Property. The Sales Contract will include the Buyer’s information, which can be used for an introductory call - “Hello Buyer, our company is handling the title work for the property at XYZ that you are purchasing. Are you buying this as part of a 1031 Exchange? Are you interested in our 1031 Exchange services? Are you happy with the current title company, we would be more than happy to help you with your closing.”&nbsp;&nbsp;</p>

<p paraeid="{979a8873-5ac3-4522-848f-6f843bce594e}{68}" paraid="291563219">&nbsp;</p>

<h3 aria-level="2" paraeid="{979a8873-5ac3-4522-848f-6f843bce594e}{72}" paraid="198321640" role="heading">1031 Exchange as a Tool to Accelerate Title Business&nbsp;</h3>

<p paraeid="{979a8873-5ac3-4522-848f-6f843bce594e}{82}" paraid="1567391606">1031 Exchange services through Managed Service should not be seen as an ancillary service offering. It is truly a supporting product offering that will help not only retain existing clientele, but also help companies generate new title work.&nbsp;&nbsp;</p>

<p paraeid="{979a8873-5ac3-4522-848f-6f843bce594e}{92}" paraid="1064327392">In today’s market, where real estate transactions have slowed, it is more important than ever for title companies to capture as much revenue as possible and protect the business they have built, but also look at unique ways to stand out from the competition. Offering “in-house” 1031 exchange services through Managed Service provides a solution to both.&nbsp; <a href="/blog/case-study-title-company-abc-implements-managed-service" title="Title Company Implements Managed Service">Read about the results a title company saw after implementing Managed Service.</a></p>

<p paraeid="{979a8873-5ac3-4522-848f-6f843bce594e}{92}" paraid="1064327392">&nbsp;</p>

<p paraeid="{979a8873-5ac3-4522-848f-6f843bce594e}{92}" paraid="1064327392"><em>The material in this blog is presented for informational purposes only. The information presented is not investment, legal, tax or compliance advice. Accruit performs the duties of a Qualified Intermediary, and as such does not offer or sell investments or provide investment, legal, or tax advice.&nbsp;</em></p>

<p>In Fall 2022, <a href="/exchange-manager-pro" title="Exchange Manager Pro 1031 exchange software">Exchange Manager Pro^SM</a> completed its’ SOC 2 Type I Report, which reviewed Accruit’s internal processes and procedures in relations to how both the company and its software handles customer data. Successfully achieving SOC 2 Type I established that Accruit’s procedures for handling customers data and information met the industry leading requirements for safeguarding customer data.</p>

<p>Over the past nine months, <a href="https://www.johansonllp.com/&quot; title="Johanson Group SOC 2 Vendor">Johanson Group</a> with the help of <a href="http://www.secureframe.com/&quot; title="Secureframe SOC 2 auditsoftware">Secureframe</a> has been reviewing in detail the information and assurance of the execution of the controls Accruit has in place relevant to security, availability, and processing integrity of Exchange Manager Pro^SM pertaining to users’ data and the confidentially and privacy of the information processed. By achieving SOC 2 Type II, Johanson Group attests to Accruit’s information security controls meet the leading industry standards for security, confidentiality, availability, privacy, and processing.</p>

<p>Starting out as Accruit’s in-house software for processing 1031 Exchanges, Exchange Manager Pro^SM, is now a <a href="/saas" title="Exchange Manager Pro SaaS offering for Qualified Intermediaries">SaaS</a> (Software as a Service) offering utilized by several Qualified Intermediaries to process their 1031 Exchanges. Through embedded controls, automated workflows and digital document creation and execution, Exchange Manager Pro^SM has revolutionized the way in which 1031 Exchanges are processed across the industry.</p>

<p>“By developing Exchange Manager Pro^SM, a cloud-based technology, Accruit is quickly revolutionizing the 1031 exchange marketplace and becoming the industry standard. Utilizing Exchange Manager Pro^SM for the efficient processing of 1031 Exchanges is why we dedicated time and effort to ensure our client’s data is managed through tested redundancies, high security and uncompromised procedures,” stated Brent Abrahm, CEO of Accruit.</p>

<p><strong>About Accruit Technologies</strong></p>

<p>Accruit Technologies, a wholly owned subsidiary of Inspira Financial, developed Exchange Manager Pro^SM, a proprietary, cloud-based SaaS application that makes administering 1031 exchanges safe, secure, and simple. Exchange Manager ProS^M SOC 2 Type I and Type II certified, is designed to automate routine functions of Qualified Intermediaries including online client onboarding, document creation and distribution, and automatic deadline reminders and notifications.   </p>

<p>A veteran Qualified Intermediary company, QI ABC, facilitates roughly 25-30 exchanges per month. They want to reduce their workload as they transition toward retirement, but they are not ready to shut down shop altogether. QI ABC realizes the value of the business is tied directly to the principals. Therefore, selling the business is not a lucrative option unless they maintain working in the business at a similar level, defeating the purpose of scaling down. QI ABC looks for options to begin enjoying the fruits of their labor, while maintaining a revenue stream that supports semi-retirement. But their options are sparse. The QI could reduce the number of 1031 exchanges they will accept and process, but eventually this erodes their reputation and eventually will eliminate their revenue stream entirely. Learn how Accruit’s Managed Service, a white-label QI solution for 1031 exchanges, became <strong>the solution</strong> for this Qualified Intermediary.</p>

<p><strong>The Facts</strong></p>

<p>QI ABC has been in the 1031 exchange business for over 30 years, the partners are both gearing toward retirement and are looking for options to reduce their workload, maintain a legacy, and make a profit off the business they built over to past three decades.</p>

<p><strong>The Problem</strong></p>

<p>Knowing the desire to retire was on the near horizon, QI ABC started to look at their options for entering semi-retirement and turning a profit from the long-term business they built. When QI ABC investigated selling their Qualified Intermediary business, they realized the value in their QI business was themselves. Their QI business was built upon their industry reputation and without them involved in the day-to-day, QI ABC was not valuable to an outsider buyer.</p>

<p>QI ABC knew that the status quo was not a solution because they could not maintain the same workload and output as they look to enter semi-retirement.</p>

<p>QI ABC had run out of ideas and options, but they were committed to finding a solution as they entered their golden years.</p>

<p><strong>The Solution: Managed Service through Exchange Manager Pro^SM</strong></p>

<p>QI ABC received an email from fellow FEA member Accruit about their Managed Service offering through Exchange Manager Pro^SM and began a conversation about business possibilities going forward. Knowing Accruit was a renowned player in the 1031 Exchange industry, QI ABC, determined that a turnkey, white-label Qualified Intermediary solution, might just be the solution for them.</p>

<p>Implementing Managed Service, QI ABC can continue to offer 1031 services “in-house” under their existing brand. To their client base, there is no noticeable change in service to get a 1031 exchange started. Once the 1031 exchange is initiated by QI ABC, the Exchange Manager Pro^SM team of 1031 experts work behind the scenes as the back-office qualified intermediary to facilitate the 1031 exchanges.</p>

<p>Upon further conversations with Accruit on their Managed Service offering, QI ABC learned of the following benefits they would receive as a Managed Service client:</p>

<ul>
<li>QI ABC, would leverage the buying power of a national QI which could earn them more revenue from depository funds</li>
<li>QI ABC’s branding would remain intact and pre-designed marketing collateral would be provided</li>
<li>QI ABC is electronically notified and informed on every step of the 1031 process</li>
<li>QI ABC’s workload would be reduced by roughly 80%</li>
</ul>

<p>Implementing Managed Service would allow QI ABC to continue business as usual without sacrificing transactional volume. Yet, they would greatly reduce their internal efforts because Accruit’s Managed Service is facilitating the actual 1031 exchanges through the industry’s only 1031 exchange workflow solution.</p>

<p><strong>The Result</strong></p>

<p>QI ABC couldn’t be happier with their decision to implement Managed Service. After three decades, within nine months, QI ABC saw the following benefits:</p>

<ul>
<li>Workload reduction by roughly 80%</li>
<li>Leveraged the “buying power” of a larger QI, producing up to 300% of previous revenue per transaction compared to Managed Service</li>
<li>Took first uninterrupted vacation in many years</li>
</ul>

<p>As a seasoned Qualified Intermediary company, aware of the due diligence required to set-up a new 1031 Exchange, QI ABC, seamlessly transitioned into Managed Service. Accruit’s Exchange Manager Pro^SM, the patented 1031 exchange workflow, made the data and document collection and delivery secure and timely for all parties involved.</p>

<p>Are you a QI looking for options? Maybe you want to scale back your personal efforts in your business without affecting your revenue. Maybe you want to leverage the “buying power” of a larger QI?</p>

<p>Learn more about <a href="/managed-service" title="Managed Service for a Veteran Qualified Intermediary">Managed Service</a> and how it could benefit your existing Qualified Intermediary operations.</p>

<p>In today’s market with inflation at a multi-decade high and escalating interest rates many businesses want to “wait and see”, rather than “adapt and act”. We believe if you aren’t moving forward, you are moving backwards, and now is the perfect time to reinvest into your business and improve your 1031 exchange infrastructure – if you don’t, know that others will.&nbsp;</p>

<p>Exchange Manager Pro^SM, the only patented 1031 exchange web-enabled workflow, is proving its worth time and time again as Qualified Intermediaries (QI) across the country continue to license and implement the software in their own organizations.</p>

<p>Features of Exchange Manager Pro^SM include:</p>

<ul>
<li>Standardized workflow with embedded controls to ensure exchange compliance</li>
<li>Single data entry to reduce data redundancies and potential for errors</li>
<li>Automated document creation and execution</li>
<li>Calendar-view of all exchanges, with automated reminders to ensure timeliness</li>
<li>Central repository for all exchange documents with robust reporting options</li>
</ul>

<p>Exchange Manager Pro^SM QI clients are experiencing the following since implementing the revolutionary 1031 workflow technology:</p>

<ul>
<li>30-50% reduction in time spent on mundane, tedious administrative tasks</li>
<li>Increased efficiencies with up to 35% reduction in processing times</li>
<li>Reduced operating expense by replacing costly and typically antiquated software programs including client databases, electronic signature applications, and file storage systems</li>
</ul>

<p>Exchange Manager Pro^SM delivers on the expectations of today’s exchanger, including real-time access to exchange data, timely completion of requests, and the ability to handle last minute closings without skipping a beat. As a QI, don’t just meet, but strive to exceed these elevated expectations, Exchange Manager Pro^SM makes that possible.</p>

<p>With 2023 just around the corner and the first quarter being the most active for 1031 exchanges historically, now is the time to act on improving and scaling your QI processes.</p>

<h2>The Facts</h2>

<p>Title Company ABC does the title work for several customers that utilize 1031 exchanges on their real estate transactions for properties held for investment and business use. Because Title Company ABC does not service 1031 exchanges, they must refer these customers out to a competitor that services 1031 exchanges, in addition to title work.</p>

<h2>The Problem</h2>

<p>As Title Company ABC continues to refer their customers executing 1031 exchanges out to their competitor, eventually, some of these customers moved all their business, including title work, over the competitor to simplify the process by keeping everything with one company.</p>

<p>Because Title Company ABC did not have the time or resources to start a Qualified Intermediary needed to service 1031 exchanges in house, they would continue to lose some customers to their competitors and lose present and future revenue – they needed to find a solution.</p>

<h2>The Solution: Managed Service by Exchange Manager Pro^SM</h2>

<p>Title Company ABC attended a recent Land Title convention held by their state association. While attending, they heard about Managed Service through Exchange Manager Pro^SM, a turnkey, white-label Qualified Intermediary solution.</p>

<p>Managed service would allow Title Company ABC to offer 1031 exchanges “in-house” under a custom branded Qualified Intermediary entity, while the Exchange Manager Pro^SM team of 1031 experts worked behind the scenes as the back-office facilitating the 1031 exchanges.</p>

<p>The unique nature of Managed Service will allow Title Company ABC to offer and monetize 1031 exchanges without needing to invest or divert scarce resources.</p>

<p>Title Company ABC decided to give Managed Service by Exchange Manager Pro^SM a try. For a nominal upfront set-up fee, they were onboarded as Managed Service clients within days, and they were able to start offering 1031 exchanges to their existing clientele.</p>

<h2>The Result</h2>

<p>Within a few short months of implementing Managed Service, Title Company ABC has earned roughly $20,000 of new income from the revenue share which is made up of both shared fee and deposit revenue. Additionally, they were able to retain roughly 10 customers that they would have previously referred out to a competitor, and they were able to secure a handful of new customers that were looking for a title company that offered both 1031 exchange and title services under the same roof.</p>

<p>Does this scenario sound familiar? If so, <a href="/managed-service" title="Managed Service by Exchange Manager Pro">visit to learn more about Managed Service</a> and how it could benefit your company.</p>

<p>Exchange Manager Pro^SM by Accruit had the pleasure of not only attending, but co-sponsoring the recent Qualia Future of Real Estate Summit 2022 (FORES22). FORES22, Building a Connected Tomorrow, was designed to bring together title &amp; escrow, mortgage, and property tech companies to explore technology, processes, and business models to unite all segments for an improved client experience. Exchange Manager Pro^SM was right at home, introducing its white label 1031 exchange solution, Managed Service, to companies in attendance from across the US.</p>

<h2>What is Managed Service?</h2>

<p>Managed Service through Exchange Manager Pro^SM provides a value add for title companies and others that are interested in offering 1031 exchange services. The white-labeled 1031 exchange technology solution allows the company, referred to as exchange facilitator, to maintain the relationship with their client while Exchange Manager Pro^SM provides all of the documentation and banking services of the Qualified Intermediary (QI) behind the scenes, providing a turnkey 1031 exchange experience for all parties.</p>

<p>Managed Service not only provides an improved customer experience for the exchange facilitator’s client, but it also eliminates the need for companies to turn away clients or worse, recommend a competitor for the 1031 exchange. Lastly, it creates a new income source for exchange facilitators through a revenue share.</p>

<h2>How does Managed Service Work?&nbsp;</h2>

<p>Implementing our white-labeled QI, Managed Service, is seamless for all involved. Once a Managed Service agreement is in place, there are a few simple steps for the exchange facilitator to follow in order to offer in-house 1031 exchange services to their existing clients:</p>

<ol>
<li>Qualify the client for a 1031 Exchange: Is the client interested in doing a 1031 exchange on their real estate transaction? Utilize a provided guide to confirm the client and their transaction qualify for a 1031 exchange.<br />
&nbsp;</li>
<li>Collect client information and documents: Through our cloud-based intake form, submit client info and documentation pertinent to the 1031 exchange. All information required is likely already on-hand due to the work your company is already completing on behalf of the client.&gt;<br />
&nbsp;</li>
<li>Once all information is provided, the remaining 1031 exchange processes will be facilitated through Exchange Manager Pro^SM including document creation and execution, deadline reminders, wiring of funds, etc.</li>
</ol>

<p>Through Managed Service, companies can facilitate 1031 exchanges for their clients and ultimately retain future business by keeping everything under one roof.</p>

<h2>Benefits of Managed Service</h2>

<p>While there are numerous benefits of implementing Managed Service, some of the more notable benefits that will directly impact your company’s bottom line include:</p>

<ul>
<li><b>Retain 1031 Exchange Business:</b> When your client requests a 1031 Exchange, instead of referring them to another company that services 1031 exchanges and potentially losing future business with that client, you will be able to facilitate the 1031 exchange in-house and preserve future business.<br />
&nbsp;</li>
<li><b>Offer 1031 Exchanges as a Disqualified Party</b>: Per IRC §1031 you may be a disqualified party and unable to facilitate the 1031 exchange; however, through Managed Service you could still offer 1031 exchange services.<br />
&nbsp;</li>
<li><b>Drive Income Through NEW Revenue Share:</b> With minimal effort and manpower on your end, you will drive income through a new, favorable revenue share while retaining your current clients – win, win!</li>
</ul>

<p>Learn more about <a aria-label="Managed Service by Exchange Manager Pro 1031 exchange software" href="/managed-service" title="Managed Service by Exchange Manager Pro 1031 exchange software">Managed Service.</a></p>