Does a National Database of 1031 Exchange Professionals, “Tools”, and Investment Property Listings Make Sense Today?

It is not often that I am solicited by 1031 exchange companies looking for exposure. Yet every once in awhile somebody in the blogishere contacts me with their version of the latest and greatest. Yesterday just such an animal came knocking on my door. The business model is a online national database for 1031 exchange professionals and investors called 1031NetEx.com. Below is the email comment about this new company. Read the comment below and then I will give my initial impression of 1031NetEx.com.

Michael D. Fox | drfox@1031netex.com | 1031NetEx.com | IP: 209.31.48.34

Interested in 1031 exchanges? Be among the first to participate in the next revolution in real estate by becoming a member of 1031NetEx.Com — the only national online platform that combines all the tools, resources, and community necessary for real estate investors and professionals to effect successful 1031 exchanges.

Visit http://1031netex.com to learn more — including how to list your properties for free and receive your free copy of “1031 Exchanges Made Simple,” the complete, practical guide to avoiding capital gains taxes, building wealth, and moving up to more productive real estate through the multi-billion dollar 1031 exchange market.

Sep 11, 10:13 PM — [ Edit | Delete ] — View post “How to Avoid an Okun or McGhan? Gary Gorman’s Expert Analysis May Be Helpful for Consumers During The Due Diligence Process”

With no pun intended it is a bit odd that this comment was sent on Sept 11th. In the interest of being fair I will ask for everyone to provide their “impressions” or “thoughts” about this new business. But me first:

1. In 2007 the 1031 exchange industry has suffered some major disasters involving presumed embezzlement of investor funds. The Southwest Exchange (McGhan) and 1031 Tax Group (Ed Okun) problems have been well documented here and around the country. With the industry suffering a severe lack of consumer confidence, how will an “online” based business model like 1031NetEx.com be able to provide confidence to consumers?

2. With that being said, there is a niche to be filled in regards to a national database of 1031 exchange professionals. The Federation of Exchange Accommodators does a very solid job in both qualifying QI’s, via certification, and fighting for 1031 issues in the political arena around the country. Can 1031NetEx.com become a more nimble and hands on referral system for investors to find property, 1031 exchangers to find buyers or sellers, and for everyone involved to benefit from this type of database? Will they gain the traction they need in order to become a “go to source” for consumers and 1031 exchange professionals? Only time will tell.

3. The value add for 1031NetEx.com is to put 1031 exchange professionals “together” on a national basis by being a one stop shop. The site claims to have “tools” that will help professionals; they also claim to provide information on how to get “free” property listings for investors and 1031 professionals.

The challenge, as I see it and it is only my opinion, is that 1031NetEx.com is starting from ground zero in the blogishere. Simply put they currently have very little traffic or “reach” to entice investors or 1031 exchange professionals to become members of their site. 1031NetEx.com may employ a “SEO” professional for help in gaining google “juice” in order to improve their google search positioning. Or they may be more innovative and employ a blogging consultant who understands how to greatly improve their traffic on and ongoing basis. Either method is necessary in order for, again in my opinion, 1031NetEx.com to have the type of traffic that will result in increasing membership/subscriber numbers throughout their infancy as a company.

Why do I believe that traffic might be a challenge for 1031NetEx.com? I simply looked them up on two of the most respected blog monitoring sites in the blogishere: Technorati and Alexa.com.

Here are the results made available by Technorati for September 12, 2007:

1031netex.jpg

The Technorati results are expected for a new site. Yet they show no links coming in from other blogs or web sites making reference to 1031NetEx.com information or company.

Alexa.com’s results for traffic is a measure of the amount of traffic a site receives that is a percentage of the overall traffic on the internet. Here is what Alexa.com had to say about 1031NetEx.com today September 12, 2007:

1031netex-alexa.jpg

In order to be fair I will provide my traffic ranking from Alexa for September 12, 2007:

deansguide-alexa.jpg

Deansguide (you will never see me capitalize deansguide again) is some 800k behind 1031NetEx.com in rank. Yet I have been lucky enough to draw between 150 and 200 unique visitors a day to my blog. What does this all mean? In my opinion there is a need for a database 1031 site if it is done properly. Tell us what you think about the 1031 industry and this new idea.

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3 thoughts on “Does a National Database of 1031 Exchange Professionals, “Tools”, and Investment Property Listings Make Sense Today?

  1. Thank you for your interest in 1031NetEx.Com. We are, as you said, an “online nation [1031 exchange] database,” and also much more. As well as being a national database for 1031 exchanges,1031NetEx.Com provides a powerful array of other tools and resources for investors and real estate professionals engaged in successful 1031 exchanges.

    Anyone logging on to our Web site at http://1031netex.com can join free of charge and list their 1031 exchange-ready property and/or their professional services, as well as search for 1031 exchange property and services. Free basic members have access to the 1031NetEx library and resource materials, and can search properties and professionl services. Premium members (who pay only $29.95 per month) can also post their own professional marketing materials and receive additional benefits.

    In addition, 1031NetEx.Com provides its Premium members with email alerts for all important exchange deadlines; individualized timeline management in an easy to read graphic format for each exchange; online access 24/7 to all 1031 exchange documents; secure and easy storage and sharing of exchange documents; secure and easy communication between all interested parties; a centralized, easy to use, and constantly available management hub for all aspects of 1031 exchange transactions; and independent, objective, reliable, and easy to understand 1031 exchange information. The combined thrust of 1031NetEx.Com’s tools and resources is to empower our members to proceed with knowledge and confidence in undertaking 1031 exchanges.

    You mentioned the lack of consumer confidence in the 1031 exchange market caused by some presummed embezzlement of investor funds by qualified intermediaries. 1031NetEx.Com addresses the question of consumer confidence by making the consumers themselves more prepared and confident in managing their 1031 exchanges and selecting their professional team. By eliminating the fear factor and closing the knowldege gap in regard to 1031 exchanges, 1031NetEx.Com directly empowers investors and real estate professionals to make intelligent, strategic investment decisions regarding their 1031 exchanges.

    1031Netex.Com will “gain the traction” we need on the Web to become the “go to source” for consumers and 1031 exchange professionals. We began our online operations in late June 2007. Since then, we have more than doubled our Web traffic each month and continue to grow. We are constantly working on improving our SEO, as well as our marketing, online and off, and we expect even greater growth momentum in the future.

    Your closing observation about 1031NetEx.Com was that “there is a need for a database 1031 site if it is done properly.” Agreed! That’s exectly what 1031NetEx.Com is doing – and more.

  2. Pingback: Does a National Database of 1031 Exchange Professionals, “Tools”, and Investment Property Listings Make Sense Today: Netex.com Responds to Our Analysis « DeansGuide

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