The Question Every New Investor Asks
One of the most common questions from investors new to 1031 exchanges is: should I watch the free training first, or should I call a qualified intermediary right away?
The answer depends on where you are in the process. Here is the exact order of steps every investor should follow, and where the free training fits in.
The Correct Order of Steps for a 1031 Exchange
Step 1: Decide you want to defer capital gains taxes. This is the starting point. If you are selling investment property and want to defer the capital gains tax, a 1031 exchange is the primary tool available to you. The free training at [1031traininghub.com](https://1031traininghub.com) is the right place to start if you are at this stage.
Step 2: Watch the free training. Before you call a QI, watch the free training. It takes less than two hours and will give you a complete understanding of the exchange process, the timelines, the identification rules, and the QI's role. This is not a prerequisite, but investors who do this step first get more out of their consultation and make better decisions.
Step 3: Use the capital gains calculator. Before your consultation, get a rough estimate of your capital gains exposure using the free calculator at [1031federal.com/capital-gains-calculator](https://1031federal.com/capital-gains-calculator). This helps you understand the financial stakes and gives your QI useful information for the consultation.
Step 4: Engage a qualified intermediary before you list your property. This is the most time-sensitive step. The QI must be engaged before you close on your relinquished property. Ideally, you engage the QI before you even list the property, so the exchange documentation is ready before closing.
If you have already listed the property or are under contract, call a QI immediately. The clock does not start until closing, but the documentation must be in place before closing.
Step 5: Schedule a free consultation. Contact 1031 Federal Exchange at [1031federal.com/contact](https://1031federal.com/contact) or call 866-455-7268. The consultation is free and covers your specific property, timeline, and replacement property goals.
Step 6: Sign the exchange agreement before closing. Your QI will prepare the exchange agreement and assignment documents. These must be signed before you close on your relinquished property.
Step 7: Close on your relinquished property. At closing, the title company follows the exchange instructions and wires the proceeds directly to your QI's escrow account. Your 45-day and 180-day clocks start on this date.
Step 8: Identify your replacement property within 45 days. Submit your written identification to your QI before midnight on day 45.
Step 9: Close on your replacement property within 180 days. Your QI coordinates the acquisition of the replacement property using the exchange funds.
Why the Training Comes Before the QI Call
The training is not a substitute for a QI. You cannot complete a 1031 exchange without a qualified intermediary. But the training prepares you to use the QI consultation effectively.
Investors who call a QI without any background knowledge spend the consultation on basics. Investors who have watched the training arrive ready to discuss their specific situation, ask informed questions, and make faster decisions.
The training is also useful for evaluating QI firms. After watching it, you will know what a QI is supposed to do, what questions to ask about fund security and experience, and what red flags to watch for.
When You Should Skip the Training and Call Immediately
There is one situation where you should skip the training and call a QI immediately: if your closing is imminent or has already happened.
The 1031 exchange rules require that the QI be engaged before closing. If your closing is in the next few days, call 1031 Federal Exchange at 866-455-7268 immediately. Do not wait to watch the training.
If your closing has already happened and you received the proceeds directly, call anyway. There may still be options depending on the circumstances, but time is critical.
The Free Training Is a Starting Point, Not a Finish Line
The free training at [1031traininghub.com](https://1031traininghub.com) gives you the foundation you need to make informed decisions about your exchange. But every exchange is different. Your specific property, your tax situation, your replacement property goals, and your timeline all affect how your exchange should be structured.
That is what the free consultation with 1031 Federal Exchange is for. After watching the training, schedule your consultation at [1031federal.com/contact](https://1031federal.com/contact) or call 866-455-7268.
Frequently Asked Questions
What if I am not sure whether I want to do a 1031 exchange? Watch the training first. It will help you understand whether a 1031 exchange makes sense for your situation. Then schedule a consultation to discuss the specifics.
Can I do a 1031 exchange without watching the training? Yes. The training is optional. But investors who watch it first consistently report better outcomes.
What if I have already closed on my relinquished property? Call immediately. The 45-day clock is already running. The sooner you engage a QI, the more options you have.
Is the training the same as a consultation? No. The training is general educational content. A consultation covers your specific situation, property, and goals. Both are free, and both serve different purposes.