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1031 Exchange Properties

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1031 exchange approved properties.

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Our Mission

Inspired Solutions Empowering Our Clients to Invest with Confidence

We offer a turn-key solution for your 1031 exchange. The 45-day identification period can be a very stressful event. Our experienced team of securities and real estate professionals have created an online marketplace of fully-vetted, investment-grade real estate offerings. Our 3-step process makes for a simple and straightforward 1031 exchange.

1. Browse our marketplace of properties.

Join the Crowd to view our state-of-the-art marketplace of 1031 eligible investment properties. Here you’ll be provided with all the details and documents needed to assist in your due diligence.

2. Complete all paperwork online.

Our expert representatives will walk you through each step of the process to ensure your 1031 exchange is completed correctly and efficiently.

3. Close in as little as 3-5 days.

The properties we offer are already purchased, thus removing any closing risk. Most clients are able to close in as little as 3-5 days. Kick back and relax, your 1031 exchange is done.

The largest inventory of DSTs in the country

A Delaware Statutory Trust (DST) allows you to co-invest with other 1031 exchange investors in one or numerous institutional-grade properties. When you invest in a DST, you are assigned a fractional ownership of equity and debt, fulfilling your exchange requirements. You will receive a 1099 for ordinary income, 1098 allowing for mortgage interest write-off, and an operating statement or profit & loss statement for depreciation. With a DST, investors can still enjoy the benefits of owning real estate without dealing with the day-to-day responsibilities of actively managing real estate.

DST Ownership Example

MAIN ST. APARTMENTS, DST
$20,000,000 Equity Offered / 7.0% Cash Flow / 60% LTV

Investor Spotlight

Smith Family - Sold Beach House

Exchanged into DST (10% Owner)

Equity $800,000
Debt $1,200,000
Total $2,000,000

Investor Spotlight

Ben Berg - Sold Industrial Building

Exchanged into DST (15% Owner)

Equity $1,200,000
Debt $1,800,000
Total $3,000,000

The Debt is Handled

One of the requirements for a 1031 exchange is to take on "equal or greater debt" in the replacement property to what you had in the property you are exchanging. A DST takes the headache out of arranging financing and already has non-recourse financing set up for you.

The DST secures non-recourse financing at favorable terms.

The DST sponsor leverages their strong lender relationships to obtain financing terms investors would most likely not be able to obtain on their own.

The DST assigns the pro-rata share of debt to the investor.

The DST assigns the benefits of the debt but retains the obligations. The debt is non–recourse to the investor. The investor does not need to qualify for the debt personally.

Investors can relax and know the debt is handled!

Investors fulfill their debt requirements without the headache associated with qualifying for and being liable for the debt obligations.

Still have questions? Call 844.533.1031

  • “Ed’s deep knowledge of the real estate market as a whole, from the pluses and minuses of various property classifications (retirement communities, student housing, industrial, storage spaces, etc...) all the way to the ins and outs of the legal aspects of DSTs, made our process a painless one, from the minute we sold our property to the time we received our first monthly check for its replacement. Truly, one of the best business experiences I've had in some time. I would use Ed and 1031 Crowdfunding again in a heartbeat and recommend him to anyone currently considering doing a 1031 exchange.” Mary J. McCall, Idaho
  • “Highly recommend 1031 CrowdFunding! Great experience with my first 1031 with them. They answered all my questions with full disclosure, offered a lot of expertise and helped me identify a great investment. Whole process was smooth and they continue to check in and communicate often.” Julie T. Salt Lake City, UT
  • “Just closed my first exchange with this group and could not be happier. Great team, great exchange options and quick processing. Wish I had found them years ago.” Joseph L. Bainbridge Island, WA
  • "When elsewhere, at the last moment my initial identified exchange property fell through, I thought I was out of options. I came across 1031 Crowdfunding's website and gave them a call. Their assistance allowed me to effortlessly meet my complex and substantial goals. When things were chaotic and others were trying to sell, Ed Fernandez and 1031 Crowdfunding were helping. I highly recommend 1031 Crowdfunding to anyone dealing with a 1031 Exchange for the first time! They have patience and their advice is solid without seeming to be self-serving. They are unique!" Carl N. Metairie, Louisiana
  • “Edward, I would just like to thank you and 1031 Crowdfunding for your most professional response to my DST needs. I don't think that you could have reacted faster or fulfilled my needs any better. I shall of course use your services for all future needs.” Joe B. Jamul, CA
  • “Both Ed and Kiva were extremely helpful. Expecting to have a long relationship with the company.” Suga C. San Jose, CA

Since it's election season, we wanted to revisit the Tax Cut and Jobs Act and how it affects Section 1031 of the Internal Revenue Code. The Tax Cut and Jobs Act was signed into law on December 22, 2017, and took effect on January 1, 2018. It is a complex modification to the Internal Revenue Code that will take some time to fully understand, notwithstanding that it became effective just nine days after signing.

The major change to Section 1031 is the complete repeal of personal property exchanges. The Code section now refers exclusively to real estate assets, and has been retitled, “Exchange of real property held for productive use or investment.”

Real estate exchanges are subject to the same rules and regulations as under previous law. The 45 day identification and 180 day exchange periods remain unchanged, as does the role of the Qualified Intermediary. All real estate in the United States, improved or unimproved, also remains like-kind to all other domestic real estate. Foreign real estate continues to be not like-kind to real estate in the U.S.

Personal property assets that can no longer be exchanged include intangibles, such as broadband spectrums, fast-food restaurant franchise licenses and patents; aircraft, vehicles, machinery and equipment, railcars, boats, livestock, artwork and collectibles. Transition rules permit a personal property exchange to be completed in 2018 if either the relinquished property was sold or the replacement property was acquired by the taxpayer during 2017. Note that there is no mention in the transition rule of acquisition by an EAT; the rule is specific to the taxpayer.

Full expensing. The full cost of tangible business use personal property assets such as heavy equipment, farm machinery, vehicles and hotel furniture can be written off in the year that they are placed in service by the taxpayer. Although tax can no longer be deferred through like-kind exchanges for these assets, the full expensing deduction can be used to offset any capital gain or depreciation recapture recognized in that same or future years. Full expensing is temporary; it will expire in 2022, and will be reduced to 80% for assets placed in service in 2023, 60% for 2024, 40% for 2025 and 20% for 2026. This deduction applies to both new and used assets acquired by the taxpayer.

Continuing risks to Section 1031 will come from a change in both Members and the balance of power in Congress, and from efforts to correct flaws in this hastily passed tax bill. Since the bill was not revenue neutral, and increases the deficit by almost $1.5 trillion over the 10-year budget window, any changes must be paid for with an offsetting reduction. We successfully made the case that Section 1031 should be preserved because it stimulates the US economy and benefits taxpayers of all sizes. However, that message will need to be delivered again as pay-fors are sought for corrections and the make-up of Congress changes after the 2018 elections.

Many thanks go out to all who tirelessly helped throughout this process of advocating for preservation of Section 1031 through meetings, calls, letters and more. Without all of our voices informing Congress of the broad benefits of Section 1031, this important tool could have been eliminated in its entirety. Everyone helped and every bit of help mattered. Congratulations to us all!

We are very grateful to all of the Members of Congress that listened, understood, and supported retention of Section 1031 in this tax reform bill.

Written by IPX 1031. View the original article here. "IPX1031 focuses solely on 1031 Tax Deferred Exchanges. As the national leader in 1031 Exchange services and as a Fidelity National Financial company, IPX1031 has the financial assurances, security and expertise essentials to protect your funds and provide answers and guidance throughout the exchange process."

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CrowdPay is an FDIC insured bank account that you can use to purchase investment opportunities. You fund your CrowdPay account by ACH or wire transfer. All future dividends, interest payments, as well as revenue sharing payments will be placed into your CrowdPay account. You have the option to transfer funds into the account, withdraw funds from the account, or purchase additional assets at any time.

The account is held by GoldStar Trust Company, a trust only branch of Happy State Bank, and cash that accumulates in your new CrowdPay account is FDIC insured. Please follow the below link for additional important information regarding your CrowdPay account.

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