Southwest Exchange Corp.
Southwest Exchange Corp recently closed its doors with no explanation to its real estate clients. The company had on deposit approximately $83 million in funds held for investors who had relinquished property as part of a Tax Deferred 1031 Exchange. Southwesst Exchange was one of many “qualified intermediaries” who held proceeds from the sale of a property in the interim period while an investor was closing escrow on a purchase. Having been in business in the Las Vegas area for several years, the company had been sold 2 years ago to a local business group. At this time there is no promise of how much, if any, of the investors’ funds will be recovered and returned. Clients not only lost proceeds from real estate sales, but also face the problem of defaulting on the purchase of the replacement property. The Tax Deferred 1031 Exchange is a very popular investment tool that offers great tax advantages to real estate investors. There are several exchange facilitators affiliated with escrow/title companies, where funds are held on deposit with much less risk than with an independent exchange company. As in investor, you should consult a real estate professional who can direct you to those exchange facilitators. For more information, contact Las Vegas Properties at 1-888-876-8383.
Posted: March 1st, 2007 under Las Vegas Income Properties, Exchange Companies Las Vegas, Tax Deferred Exchange.
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