1031 Crowdfunding: Platform Profile

Overview

1031 Crowdfunding is an online marketplace centered on tax-deferred real-estate investments.

Current offerings can include:

• Delaware Statutory Trusts;
• 1031-exchange replacement properties;
• senior-housing real estate;
• REITs;
• Qualified Opportunity Funds;
• bridge-financing funds;
• other private real-estate offerings.

The most important legal distinction is that 1031 Crowdfunding, LLC is not a registered broker-dealer.

Broker-dealer services on the platform are provided through Capulent, LLC.

May fit better for

• accredited 1031-exchange investors;
• investors seeking passive DST replacement property;
• investors working within 45-day identification deadlines;
• investors seeking senior-housing or other commercial-real-estate exposure;
• investors with $25,000–$100,000+ available for a specific private offering;
• investors comfortable with long holding periods.

May fit less well for

• investors requiring daily liquidity;
• investors who want direct property-management control;
• investors who assume every offering is 1031 eligible;
• investors who assume every offering has a $25,000 minimum;
• investors who equate broker-dealer SIPC membership with investment-value insurance;
• investors who need personalized tax advice.

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Platform vs broker

Current platform disclosure:

• Platform owner: 1031 Crowdfunding, LLC
• Platform registered broker dealer: No
• Broker dealer: Capulent, LLC
• Broker CRD: 155155
• Broker SEC number: 8-67384
• FINRA member: Yes
• SIPC member: Yes

Certain 1031 Crowdfunding principals can act as registered representatives of Capulent.

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1031 Crowdfunding is not Regulation Crowdfunding

Current platform disclosure states that 1031 Crowdfunding LLC does not offer securities under Regulation CF.

The word "Crowdfunding" is brand/category language, not the legal offering exemption.

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Current DST minimums

Current marketplace shows offering-specific minimums.

Examples as of this fact check include:

• Selected Senior Housing DST minimum: $25,000
• Selected Medical Office DST minimum: $100,000

General platform education states common DST minimums can range:

• DST common minimum range: $25,000–$100,000

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DST ownership

A DST owns the real property.

The investor owns a beneficial interest in the trust.

For properly structured 1031 purposes, Revenue Ruling 2004-86 can treat the DST beneficial interest as an interest in real property.

That tax treatment does not turn the investor into the direct titled owner.

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1031 exchange use

Current platform is designed heavily around investors who need replacement property.

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DST liquidity

Current platform materials state typical DST holding periods can run five to ten years.

A DST is not a publicly traded REIT.

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DST fees

DST fees vary by sponsor and offering.

Potential charges can include:

• selling commissions;
• broker/dealer compensation;
• organization/offering expenses;
• financing-related costs;
• acquisition fees;
• asset-management fees;
• property-management fees;
• disposition fees.

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Current senior-housing focus

1031 Crowdfunding currently sponsors and distributes multiple senior-housing opportunities.

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Other private-market products

Current homepage also lists:

• Bridge financing funds: Yes
• REITs: Yes
• Qualified Opportunity Funds: Yes
• 721 UPREIT programs: Yes
• IRA investing: Yes

Availability changes over time.

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Bridge Fund example

Current 1031CF Bridge Fund materials can display high fixed-note coupon references.

Those rates are offering-specific and speculative.

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REIT minimum

Current Covenant Housing REIT marketing has referenced a $5,000 starting investment.

That is a product-specific minimum.

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Accredited investor

Many DST/private-placement offerings are available only to accredited investors.

Eligibility depends on the offering.

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No tax-advice guarantee

The platform provides 1031 educational material and exchange support.

Investors remain responsible for qualified intermediary, timing, basis, debt replacement, and other tax requirements.

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Protection

Capulent is a FINRA/SIPC broker-dealer.

That does not protect private real-estate securities from:

• property decline;
• sponsor failure;
• illiquidity;
• missed distributions;
• loss of principal.

Assessment

1031 Crowdfunding is most useful as a marketplace for investors who already have a tax-driven real-estate problem to solve.

Its DST inventory can make a 45-day identification window easier to navigate.

That convenience does not eliminate the underlying constraints:

• long holding periods;
• sponsor risk;
• property risk;
• offering-specific fees;
• limited control.

The central legal distinction is:

1031 Crowdfunding owns the platform; Capulent provides the regulated broker-dealer services.