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Our Mission

Inspired Solutions Empowering Our Clients to Invest with Confidence

Our mission is to provide a state-of-the-art platform and resources so you can make confident investments. We offer a turn-key solution for your 1031 exchange to streamline your investment process while we handle the logistics. We personalize our services to your unique investment goals and needs to empower you throughout the investment process.

Perhaps the most significant advantage of Delaware Statutory Trusts is that the unanimous approval of the individual owners (investors) is not required in order to deal with unexpected, adverse developments. During the recent recession, which of course significantly affected the real estate market, some TIC structures were hindered from taking the necessary actions to mitigate loss, simply because one of the owners, a so-called "rogue investor," did not approve of the action desired by the majority. So while DST offerings are selected and structured to lessen the risk from such possibilities, all risk cannot be removed, and it is an additional protection to the investors that the signatory trustee is empowered to take necessary actions (restructure financing, renegotiate leases, sell the property, etc.) to reduce loss.

For investors considering selling real estate and reinvesting in a new property, a 1031 exchange could be a strategic solution to managing assets. Tax-deferred exchanges make it possible to directly reinvest profits from a relinquished property into a new property — without immediately needing to pay taxes on capital gains.

A DST 1031 exchange may be a valuable option to consider if you are an Accredited Investor. This designation applies to those who have an individual net worth or joint net worth exceeding $1 million, excluding the value of your primary residence, or an annual income of more than $200,000 or combined income of more than $300,000. If you qualify for this designation and meet the exchange criteria, you can defer taxes on your profits and put your money into a DST.

At 1031 Crowdfunding, we have solutions to make the exchange process easy and convenient. We provide a variety of straightforward options for acquiring new properties while reducing the time and effort the investment requires. Our innovative marketplace aligns with your financial management strategies through investment options that fit your needs.

The 45-day identification period can be a very stressful event as you navigate all the requirements and processes of research, documentation and due diligence. Our experienced team of professionals has created an online marketplace of vetted real estate properties to make finding properties more accessible.

Our 3-step process makes for a simple and straightforward 1031 exchange. Follow these steps to complete the 1031 Crowdfunding exchange process:

1. Browse our marketplace of properties.

Research available properties: When you join the 1031 Crowdfunding network, you have complete access to our innovative marketplace and 1031-eligible investment properties. We provide all the documentation, records and information you need for your due diligence.

2. Complete all paperwork online.

Fill out the paperwork online: We provide expert guidance for each step to ensure all your paperwork is correct so the process goes through efficiently.

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

Make your purchase: Because we offer already-purchased properties, you don't need to navigate any closing risk. Our system is so convenient that many of our clients close in only 3-5 days.

We Offer the Largest Selection of DSTs

To ensure you find the right investment options, we offer an extensive selection of Delaware Statutory Trusts (DSTs). Our innovative marketplace streamlines your search process for real estate that meets 1031 exchange criteria.

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. This type of investment removes the need to handle property operations or negotiations with contractors and real estate agents. At the same time, you enjoy the benefit of earning current monthly income with the potential for property appreciation. A DST can be an excellent solution for some investors who want to reinvest in more real estate without the obligations of being the sole owner.

DST Ownership Example

When you invest 1031 money into a DST, you take on partial ownership of the equity and debt. These sample clients' investments provide tangible examples of what your DST could potentially look like.

$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

We Handle the Debt for You

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.

If you're reinvesting real estate funds through a 1031 exchange, our experienced professionals can guide you through the entire process. With a wide array of real estate properties available to our investor network, you can save time and reduce stress by making property investments through our accessible, convenient process.

1031 Crowdfunding reviews reflect our record of trustworthy service for our clients — it's why we've earned the rating of the #1 Real Estate Crowdfunding Platform for 1031 exchanges. Investors choose our services because our process makes 1031 exchanges more efficient and easy from the beginning stages of research through the final stages of real estate acquisition.

See for yourself how our services can simplify the exchange process. To get started, Register to View All Properties today.

Still have questions? Call 844.533.1031

  • Would you recommend that your friend or family member invest with 1031 Crowdfunding?", 75% answered "yes", 0% answered "no" and 25% answered "undecided". This was one of the highest positive responses of any platform survey. The Real Estate Crowdfunding Review
  • The most consistent feedback was that investors were pleased with the amount of due diligence presented and it was a good source to find 1031 offerings. The Real Estate Crowdfunding Review
  • “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
  • As a multiple time investor with 1031 Crowdfunding, their dealings with me have always been professional, courteous, responsive, and transparent. I highly recommend them as a credible investment resource. Ron G. Chico, CA
  • Initially shown to me by my CPA and after doing research of the company and properties offered, I engaged them for a very fast, efficient, and professional process that now has all of my needs met - excellent solution needed by the industry! Allen J. Sugarhill, GA
  • Great company. They made everything very easy. I would highly recommend. David H. Culver City, CA
  • Excellent support and guidance during the transaction -- without which it would have been very difficult in the age of the pandemic. Arun G. Silver Spring, MD
  • I did my second 1031 exchange with 1031 Crowdfunding... Obviously the 1st experience was executed so smoothly and effortlessly that I did not hesitate to use them again for my 2nd exchange. The process is easy, the website is intuitive, the staff are so helpful and efficient, and the availability of choices are ample and varied. I am so glad to have found them! Cecilia S. Fairfield, CT
  • I had a tight window to deal with a 1031 Exchange and this company helped me make it happen with DSTs! Everyone was very friendly, professional, knowledgeable and available to help. Arman O. Austin, TX
  • I was very pleased with the help of the staff. My questions were answered immediately. Most importantly, my wife is Trustee and she has very little business experience. Most of the activities were new to her, and the staff was very patient in working with her. Martin M. Blue Bell, PA
  • Crowdfunding 1031 is a great platform for doing 1031 exchanges. All questions that I had were answered and felt very confident in the transaction that I did. Will definitely work with them in the future. - Renate C. Columbia Station, OH
  • 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. Juilie T. Salt Lake City, UT
  • Excellent platform for 1031 exchanges. I have moved to 1031CrowdFunding after five 1031 exchanges with another platform due to better communication, reporting, and analysis of offerings. Kudos to Miles and Kiva for making the process so professional and secure. Gene D. Austin, TX

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."

This material does not constitute an offer to sell or a solicitation of an offer to buy any security. An offer can only be made by a prospectus that contains more complete information on risks, management fees and other expenses. This literature must be accompanied by, and read in conjunction with, a prospectus or private placement memorandum to fully understand the implications and risks of the offering of securities to which it relates. As with all investing, investing in private placements are speculative in nature and involve a degree of risk, including loss of your principal. Past performance is not necessarily indicative of future results and forward-looking statements and projections are not guaranteed to achieve the results described and your actual returns may vary significantly. Investments in private placements are illiquid in nature and there may be no secondary market or ability to sell the investment should the need for liquidity arise. This material should not be construed as tax advice and you should consult with your tax advisor as individual tax situations will vary. Securities offered through Capulent, LLC, member FINRA, SIPC.

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