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7) Has the firm ever been sued?
8) Has the firm ever had to make a capital call? If the firm has had to make a capital call, that means the firm used too much leverage, did not manage the property well enough, or made a similiar mistake.
9) How do I get out? A life event may force you to have liquidate your ownership share earlier than you intended. You should get in writing the process for selling down your ownership. In highly leverage buildings (70% debt), often the loan document must be amended and the new buyer approved by the bank. This will incur significant fees in addition to the decrease in selling price do to your distressed situation. Some firms won't let you get out at all. More generally, have a firm layout in black and white exactly the restrictions (both legal and practical) you will face if you need to sell
10) Talk to prior investors: If you do anything at all, talk to private investors about their experience. If you can find someone not referred by the 1031 firm, all the better. It will give you confidence that the firm you are working with is legitimate. Please also help others in this regard. If you have performed a 1031 exchange of any kind (traditional, TIC, etc.) and have feedback--good, bad, or indifferent-- on any the firms that you've worked with, please email us with feedback: nesteggemail@gmail.com
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