1031 Crowdfunding is a Reg D crowdfunding platform specializing in an esoteric corner of real restate investing known as “1031 exchanges”. “1031” refers to IRS Code section 1031, which allows taxpayers to defer paying capital gains taxes on the sale of certain kinds of real estate if they use the proceeds to buy other real estate investment properties.
1031 Crowdfunding simplifies the process of swapping ownership (partial or full) from one (or more) properties into one (or more) new properties, thereby deferring paying capital gains taxes. Investors who don’t currently own any properties can also invest, presumably in advance of future 1031 exchanges of those investments.
The investment vehicle is also a tad esoteric, known as a Delaware Statuatory Trust (DST) which differs from the LLC model of most crowdfunding sites. This is probably not the place for a novice real estate investor. Not only is the minimum investment on the high end at $25,000, but navigating DSTs and 1031 exchanges will almost certainly require assistance from a CPA and/or an attorney. That said, 1031 Crowdfunding does a great job making a complex topic approachable.
1031 Crowdfunding is only open to accredited investors.
- Website: https://www.1031crowdfunding.com
- Investment Types: Real Estate
- Security Types: Equity
- Sectors: Commercial Real Estate
- Minimum Investment: 25000
- Advertised Returns: 5-7%
- Must be accredited
You may be able to invest in 1031 Crowdfunding using a Self-Directed IRA or 401K. To learn more about using a Self-Directed retirement account for alternative investments, visit our friends at Rocket Dollar.
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