That’s how much time Atlanta entrepreneur Wilkinson Egwu is working to save real estate investors over the course of the 1031 exchange process.
A 1031 exchange is a tool well known to property investors, as it allows those purchasing like-kind properties to defer taxes on capital gains associated with selling property. A total of $100 billion of property exchanging hands each year through the process, but each contract takes on average 180 days, or roughly six months, to execute.
At the core of the exchange is a seemingly endless amount of paperwork moving among investors, wealth managers, and qualified intermediaries. Egwu saw the pain points associated with that process and wanted to bring “the industry into the 21st century.”
With his startup DeferAlly, he is using artificial intelligence to bring that timeline down to about 90 days. Using a robust chatbot called Plutus, DeferAlly’s platform has a conversation with the investor to set up the exchange and “walk through the entire process” associated with getting an exchange up and running.
The startup is new on the scene, with Egwu getting the idea off the ground this January. But he saw a clear gap in the market and went all in on DeferAlly after that. He’s working with close to 200 beta testers – a mix of qualified intermediaries and real estate investors – before bringing the full platform to market. He said he is currently recruiting additional beta testers out in the community.
“By leveraging cutting-edge AI technology, DeferAlly is well-positioned to deliver on consumer priorities- a faster and more simplified process, with a highly competitive pricing structure. This will be a game-changer for investors who want to maximize their profits and take advantage of tax deferral benefits,” added Egwu.
Egwu started his career in the banking, finance, and aviation worlds before jumping into startups. He decided to join the early-stage SaaS world after realizing the big opportunities artificial intelligence and generative AI could bring to improve the “long and arduous” paperwork process associated with real estate deals.
DeferAlly is one of several startups in the Southeast focused on improving the real estate process. Some, like Groundfloor, are helping bring more investors into the real estate world. Others, like Alabama-based Smart Alto, Georgia-based Brytecore, and Louisian-based Falaya, are all working to streamline how real estate professionals do their jobs.
Want to keep up with DeferAlly’s Growth? Here are some important links:
Wilkinson Egwu LinkedIn profile
Featured photo from LinkedIn