Who Receives the Earnings From the Exchange Money?
Or "Whose Money is it Anyway?"

Who should get the benefit from the interest earned on the Customer's Money, the Customer or the Facilitator?

Our company believes it is the Customer's money and the Customer should get every dime of interest earned.

The theoretical exchange-related justification for the Facilitator to retain the interest vanished with the adoption of the 1031 Regulations in 1991.

The Facilitator performs a unique and valuable service for the exchange customer. The Facilitator should be paid a fair fee for such service.

But the amount of interest earned on the customer's money bears no relationship to the level of service required from the Facilitator for that customer's exchange.

If the Facilitator is depending on the interest earned on the customer's money as a revenue source, the Facilitator may emphasize the Return on Principal more than the Return of Principal.

Risk and Return go hand in hand. The greater the investment risk the greater the return. The lower the investment risk, the lower the return.

At Exchange Facilitator Corporation we believe it is important to focus on return of principal rather than just the return on principal.