Bridgefund DST

Exclusive Bridge Financing Fund

Promissory note paying 12.0% interest, exclusively available through 1031 Crowdfunding.

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What is Bridge Financing?

Bridge financing is an interim financing option used by companies and other entities until the company or entity secures financing or removes an existing obligation. Bridge financing typically comes from an investment bank or venture capital firm in the form of a loan or equity investment. In the case of this offering, individuals or entities invest to capitalize real estate for Delaware Statutory Trusts or other real estate programs sponsored by 1031 CF Properties.

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How does the 1031 CF Bridge Fund work?

Management’s Combined Experience

135

YEARS IN REAL ESTATE INVESTMENTS

$1.5B

IN PRIVATE AND PUBLIC OFFERINGS

$2.1B

EQUITY RAISED THROUGH INVESTMENTS

$3.4B

IN COMBINED REAL ESTATE TRANSACTIONS

Frequently Asked Questions

It is anticipated that a significant portion of funding will be made to programs sponsored by the Manager and organized as Delaware Statutory Trusts (“DSTs”) in order to offer prospective investors in such DSTs the opportunity to engage in a “like-kind exchange” under Section 1031 of the Code.

However, the Fund is not limited solely to DST related Investments and may make other Investments in affiliates of the Manager, including into pooled investment vehicles organized as real estate funds or real estate investment trusts (“REITs”) sponsored by the Manager or an affiliate, and further including subsidiaries of such sponsored funds or REITs.

A Delaware Statutory Trust or DST is a separate legal entity created as a trust under Delaware Statutory Law. A DST allows you to co-invest with other investors in one or numerous properties. Although DSTs aren’t new, current tax laws have made them popular among 1031 exchange investors.

Purchasing into a Delaware Statutory Trust is treated as a direct interest in real estate; you are assigned fractional ownership of equity and debt, fulfilling your exchange requirements. Minimum investments are typically between $25,000 and $100,000; therefore, a single investor may own a fractional interest in an entire property or portfolio and receive distributions from the operation of the trust, from rental income, and the eventual sale of the assets.

The principal objectives of the Bridge Fund will be to: (1) provide Investors with current income in the form of interest payments from available net cash flow generated by Bridge Fund investments, and (2) return Investors’ principal upon maturity. There is no assurance that either of these objectives will be achieved.

The Fund is offering (the “Offering”) to sell senior secured promissory notes maturing on October 31, 2029 subject to the Manager’s right to extend the maturity of the Notes for up to three successive one-year terms (each a “Note” and collectively, the “Notes”) up to an aggregate $25,000,000 in Notes, subject to an increase at the sole discretion of the Manager to $50,000,000 in Notes, (the “Maximum Offering Amount”), upon the terms and conditions stated in this Confidential Private Placement Memorandum, including all exhibits hereto, (the “Memorandum”).

The Notes are being issued with a minimum investment of $25,000 and in additional denominations of $1,000; however, the Manager has the right, in its sole discretion, to waive the minimum purchase requirement.

The Notes will bear interest at the annual rate of 12.0%, non-compounded.

The Notes will be payable monthly, in arrears, by the 20th day of the following month. Notes will be issued and will begin accruing interest on the day on which the investment proceeds therefore are accepted by the Fund.

All Notes issued pursuant to this Offering will mature on October 31, 2029, subject to three one-year extension rights exercisable by the Manager upon at least 60 days written notice prior to the then applicable maturity date to the Noteholders.

On the maturity date, the promissory notes, including all principal and any accrued interest, shall be due and payable.

The Fund will be permitted to prepay the Notes, in the sole discretion of the Manager, without penalty. The Fund may prepay the Notes, in whole or in part, by paying the entirety of all accrued interest plus such portion of the outstanding principal of the Notes as the Manager has determined to prepay on the prepayment date determined by the Manager. The Fund shall deliver the Noteholders at least ten days written notice prior to any prepayment. Any partial prepayment of the Notes shall be made pro rata in accordance with the outstanding principal of the Notes held by the Noteholders.

This Offering is for Accredited Investors only. You are an “Accredited Investor” as defined in Rule 501(a) of Regulation D under the Securities Act.

An “Accredited Investor” is a natural person that has (i) an individual net worth, or joint net worth with his or her spouse (or spousal equivalent), of more than $1,000,000 (see below regarding calculation of net worth); or (ii) individual income in excess of $200,000, or joint income with his or her spouse (or spousal equivalent) in excess of $300,000, in each of the two most recent calendar years and has a reasonable expectation of reaching the same income level in the current calendar year. Rule 501 additionally provides requirements for companies, organizations, trusts, and other entities to qualify as accredited investors.

Like all private investments, investing in the Bridge Fund is speculative and involves significant risks, including loss of principal. Other unique risks include:

• The Fund has not yet identified any Investments; Investors in the Fund will not have the opportunity to review future Investments.
 
• The Fund was recently organized and does not have any operating history.
 
• Investors in the Fund will not have the opportunity to evaluate or approve any Investments.
 
• Investors will rely entirely on the Manager for management of the Fund and its Investments; The Manager will have broad discretion to invest the Fund’s capital and make decisions regarding Investments.
 
• The Fund may not be able to invest the net proceeds of this offering on terms acceptable to Investors, or at all.
 
• The Manager’s and its affiliates’ ability to originate investment opportunities for the Fund may be dependent upon the Sponsor’s ability to procure third party investment in their real estate syndications and other real estate related offerings.
 
• Noteholders will not be entitled to any voting or information rights.
 
• It may be difficult to realize the value of the collateral securing the Notes.
 
• The Fund will pay fees and expenses to the Manager and its affiliates. These fees will increase Investors’ risk of loss, and will reduce the amounts available for Investments.
 
• Changes in tax laws, including Section 1031 of the Internal Revenue Code (the “Code”), may occur which may materially adversely affect the Fund’s business plan.
 
• The Offered Securities will have very limited liquidity; transferability of the Offered Securities is restricted.
 
• Substantial actual and potential conflicts of interest exist among the Fund and the Manager and its affiliates.  It is anticipated that all of the Fund’s investments will be made in affiliates of the Manager.
 
• An Investor could lose all or a substantial portion of his investment in the Fund.
 
• There is no public trading market for the Offered Securities.  It will thus be difficult for an Investor to sell its Offered Securities.  As a result, an Investor should not expect liquidity until the maturity of the Investor’s Notes.

A full discussion of Risk Factors is contained in the Private Placement Memorandum and should be read carefully before making an investment decision.

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This overview is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any interests in the 1031 CF Bridge Fund II, LLC (the “Fund”) or any other securities. Any such offer will be made only pursuant to the Fund’s Private Placement Memorandum. Securities are offered through Capulent, LLC, member FINRA / SIPC.

What Our Clients Are Saying

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Ron G.

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.

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David H.

Great company. They made everything very easy. I would highly recommend.

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Tim C.

Very accommodating and will go the mile to answer all your questions. I did two transactions, both were smooth!

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Loren D.

Ed was patient, clear, low pressure, helpful, and knowledgeable. The rest of the team was solid when we decided to go ahead with our investment.

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The Real Estate Crowdfunding Review

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.

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These unpaid testimonials may not be representative of your experience and are not a guarantee of future performance or success. Individual’s specific circumstances and experience will vary.

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