Generate Passive Income with Alternative Investments

Enjoy the benefits of owning real estate without dealing with the daily
management responsibilities.

REGISTER TO VIEW ALL OPPORTUNITIES

What Are Alternative Investments?

When you think about investments, conventional options like stocks, bonds and mutual funds likely come to mind. An alternative investment is a term for any investment that does not fall into traditional investment categories.

Real estate is often classified as an alternative investment. Due to stock market volatility, many investors turn to real estate to diversify their portfolios.

Why Invest with 1031 Crowdfunding

How to Invest in Alternatives

1. Join the Crowd

Create a free investor account to gain access to our state-of-the-art investment platform

2. Explore Our Investment Platform

Browse our selection of offerings across a range of asset classes with various yields, hold durations, and minimums. We have options for a range of needs, including deals for accredited investors.

3. Invest Online

Let our expert team guide you through the investment process.

Get Started

Frequently Asked Questions

To begin, Register to View All Properties and create a free investor account. After completing your investor profile, you’ll be able to browse our various offerings. Our online platform has all the materials needed to conduct proper due diligence to make informed investment decisions. Next, allow one of our registered representatives to walk you through the entire investment process. Finally, you’ll be able to complete all your paperwork online. Sit back and relax; your investment is complete!

Most offerings have predefined payment schedules that pay at various intervals (monthly, quarterly, etc.). Allow one of our registered representatives to create a custom blend of investments that meets your investment goals.

Historically, target returns have been in the 5%-10% range but vary depending on the specific investment opportunity. You can view all of the details of our current and past investments and Register to View All Properties today.

Some investors are tired of dealing with the day-to-day responsibilities of actively managing real estate. With our offerings, investors can still enjoy the benefits of owning real estate without dealing with the tenants, toilets, and trash.

Investing in real estate can provide many benefits, including:

  • Diversification: Investing in real estate helps you diversify your portfolio, protecting you when your other investments take a loss.
  • Cash flow: Real estate investing is one of the best ways to generate cash flow — the net income you receive after paying your mortgage and operating expenses.
  • Great return potential: Real estate values can increase over time through a process known as appreciation, allowing you to sell the property for a profit.
  • Long-term security: You can hold your real estate investment for several years until it appreciates.
  • Tax benefits: Real estate investors can take advantage of numerous tax benefits, including tax deferment and deductions.

At 1031 Crowdfunding, our marketplace of vetted real estate offerings includes opportunities with various tax benefits.

You can fractionally invest in larger projects such as the following.

Delaware Statutory Trusts (DSTs)

 A DST is a legal entity created as a trust. DST investors own a pro rata interest in the trust. They are beneficiaries with the right to receive monetary distributions from trust operations, either from rental income or the eventual property sale.

A DST co-ownership system allows investors to benefit from property investment gains without property management responsibilities. DSTs can also be used in a 1031 exchange.

For the purpose of completing a 1031 exchange, IRS Revenue Ruling 2004-86 opened the way for eligible DST investments to qualify as the replacement property in a 1031 exchange. This revenue ruling states that a beneficial interest in a DST that owns real estate can be considered a “direct interest in real estate.” As a result, owning interest in a DST that owns real estate equates to holding title on real estate in the eyes of the IRS. 

Because of this ruling, DSTs have become one of the most common ownership structures used by smaller investors to own investment-grade real estate.

Tenants in Common (TIC)

A TIC is a co-ownership agreement under which multiple investors pool their funds and agree to own one joint property. Each contributor owns an undivided, fractional interest in an entire property, and they participate in a proportionate share of the net income, tax shelters and growth. 

Each investor receives a separate property deed and title insurance for their percentage interest in the property. They have all the same rights and privileges as a single owner. 

In a TIC arrangement, co-owners have the right to isolate or transfer their ownership interest in the property without obtaining consent from the other co-owners. This is one of the distinguishing features that sets TICs apart from other arrangements. TIC investments are also eligible for a 1031 exchange.

Real Estate Investment Trusts (REITs)

A REIT is a company that operates, owns or finances income-producing real estate. Investors pool their funds into a REIT to purchase assets, and each investor owns a share or shares in the REIT. Shareholders collect income dividends from the money the real estate properties generate.

There are two types of REITs:

  • Public REITs: Publicly traded REITs are liquid investments you can buy and sell like stocks. These REITs must register with the Securities and Exchange Commission (SEC).
  • Private REITs: Private REITs are not on any stock exchange, and they’re exempt from SEC registration. A private REIT is typically only available to accredited institutional investors.

Qualified Opportunity Funds (QOFs)

A QOF is used for investments in IRS-designated opportunity zones, which are economically disadvantaged or distressed areas. You can defer capital gains tax on this type of investment. What’s more, you become eligible for a step-up in basis after holding the investment for five years and a 15% step-up in basis after holding the investment for seven years.

Individual Retirement Account (IRA) Qualified Investments

Our platform offers several investment options you can invest in with your IRA. With a self-directed IRA, your investments are up to you, within the bounds of the IRS rules and guidelines. Check with your tax professional for guidance about your specific tax situation.

The IRS prohibits certain IRA investments, including collectibles (such as artwork, stamps, rugs, antiques, and gems), certain coins and life insurance. See IRS Publication 590 for more information about prohibited investments.

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Who We Are

1031 Crowdfunding is a top real estate platform for 1031 exchanges and alternative investments. Our senior management team has 103 years of combined experience in real estate.

In total, we’ve facilitated the launch of leading real estate private and public company platforms, including the successful seeding and operation of publicly registered, non-traded REITs, DSTs, and more than $1.5 billion in direct and indirect real estate investments.

Our expertise and unique real estate marketplace help make it easy for you to start investing.

The Management Team of 1031 Crowdfunding

103

years in real estate investments

$1.5B

in Private and Public Offerings

$1.1B

Equity raised through investments

$2.2B

In combined real estate transactions

What Our Clients Are Saying

Read all testimonials

Katie L.

Highly recommend! Exceptional service, professional, high integrity, and trustworthy!

Patrick E.

The 1031 Crowdfunding team always responds quickly… delivers on all their commitments… and provide great guidance re: what investments are best aligned with my priorities. Couldn’t be better!

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Suga C.

Both Ed and Kiva were extremely helpful. Expecting to have a long relationship with the company.

T

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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L

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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