If you are a real estate investor, by now you’ve heard about the benefits associated with 1031 real estate exchanges. Although these have gained in popularity, real estate exchanges can be difficult for investors due to the strict guidelines outlined by the IRS.

By utilizing platforms like 1031 Crowdfunding, investors like you can explore an online marketplace of fully-vetted, investment-grade real estate offerings and be on your way to finding real estate exchange opportunities that are able to be identified and closed on immediately, which eliminates closing risk.

Or maybe you’re someone who is not currently in a 1031 exchange, but you’re tired of managing real estate and would like to enjoy the benefits of owning real estate without dealing with the day-to-day responsibilities of management.

Either option sounds pretty good, right?

So How Does It Work?

Investors who have actively engaged a Qualified Intermediary (which some laymen refer to as 1031 exchange companies) can use an online platform like 1031 Crowdfunding to source more deals for their real estate exchange. 1031 Crowdfunding allows investors to purchase a beneficial interest in a variety of properties across different asset classes.

Particularly unique about 1031 Crowdfunding’s approach is that, even though the name suggests it, the platform isn’t actually a crowdfunding platform. Instead, the site offers a marketplace of Delaware Statutory Trusts (DSTs) where you can own a portion of real estate. DSTs are securities for accredited investors, and they qualify for 1031 exchanges.

1031 Crowdfunding has a simple and straightforward 3-step process:

1. Browse our marketplace of 1031 exchange 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 real estate properties we offer are already purchased, thus removing any closing risk. Most clients are able to close in as little as 3-5 days. Investors can kick back and relax; the 1031 exchange is done.

As you think about whether exchanging your real estate property is right for you, consider working with a company like 1031 Crowdfunding to alleviate the unknowns. Whether you’re facing off against a crowded market, rushing to meet the 45-day identification deadline, seeking the right real estate investment, or needing to diversify, 1031 Crowdfunding offers solutions and 1031 exchange services. Read these tips for selecting 1031 investment properties to get started.

1031 Crowdfunding attracts both cash investors and 1031 exchange investors. If you are unfamiliar with a 1031 exchange-- a tax-advantaged approach for individuals holding real estate in their portfolio-- you can read more about it here.

1031 Crowdfunding is an online marketplace and 1031 exchange company where real estate investors can find, view, and purchase a variety of available, turn-key, investment-grade properties. We provide 1031 exchange services by presenting investors with 1031 exchange-qualified properties through Delaware Statutory Trusts (DSTs) to ensure every 1031 exchange investor has the opportunity to complete a successful exchange. Contact an experienced representative at 1031 Crowdfunding for further information about for your investing needs. Before you start, read more about who we are.

While the information provided above has been researched and is thought to be reasonable and accurate, it’s important to understand that all investments, including real estate, are speculative in nature and involve substantial risk of loss.

1031 exchanges can be an opportunity for investors to defer the tax consequences that come from the sale of a property. However, there are certain requirements that must be met in order for 1031 exchanges to be considered valid by the IRS. These requirements include the following:

There are very specific requirements for identifying and acquiring potential like-kind replacement properties in your 1031 exchange transaction. Section 1031 of the Internal Revenue Code (“IRC”) specifies that investors must identify candidate replacement properties within a 45-day period to defer capital gains taxes through a 1031 exchange.

People who are looking to sell their investment property at a significant profit are soon faced with the question of “How do I replace that income with a better asset?”

At 1031 Crowdfunding we are always seeking to answer some of the questions we get asked most frequently. Whether you are looking to begin investing in real estate or you are an experienced real estate investor looking for an alternative investment vehicle, you may be curious about the potential of Delaware Statutory Trusts (DSTs).