1031 Crowdfunding Review

1031 Crowdfunding Review 2026: A solid 1031 exchange platform with high fees and long lockups

Last verified: 2026-04-12 Overall rating: 3.4/5

The 30-Second Verdict

1031 Crowdfunding is a specialized platform built exclusively for investors executing 1031 exchanges through Delaware Statutory Trusts (DSTs). It solves a real problem: meeting the IRS 45-day identification deadline with turnkey, pre-vetted properties. The fees are steep (5-7% upfront plus additional commissions), and you are looking at 7-10 year holds with no secondary market. Best for accredited investors in higher tax brackets who need a reliable way to defer capital gains on commercial real estate dispositions.

What Is 1031 Crowdfunding and How Does It Work?

1031 Crowdfunding operates as an accredited investor platform under SEC Regulation D (506b/506c), facilitating tax-deferred real estate transactions through Delaware Statutory Trusts. The platform connects investors executing 1031 exchanges with pre-vetted commercial properties across sectors including multifamily, industrial, storage, and triple-net-lease. Securities offerings are conducted through affiliated FINRA broker-dealer Capulent LLC. The company has completed over 1,800 exchange transactions totaling $3.4 billion in cumulative transactions and $2.1 billion in equity raised since its 2014 founding in Irvine, California.

Who Is 1031 Crowdfunding Best For?

This platform is purpose-built for accredited real estate investors who need to execute a 1031 exchange under tight IRS deadlines. If you are selling commercial property and want to defer capital gains, this is a strong option. If you are a smaller investor looking for general real estate crowdfunding exposure, look at Arrived Homes ($100 minimum, no accreditation) or Fundrise instead. Non-accredited investors can access some REIT offerings, but the core DST products require accreditation.

Fees

• Transaction fee: 5-7% of investment amount
• Selling commissions, placement fees, wholesaling fees, due diligence allowances, dealer-manager fees: Various (embedded in offerings)
• Qualified intermediary fees: $600-$1,200 for 1031 exchange facilitation

On a $25,000 investment held for one year, you would pay approximately $1,250-$1,750 in transaction fees alone, plus qualified intermediary fees of $600-$1,200. Total first-year costs could reach $1,850-$2,950 before any embedded offering fees.

Minimum Investment

$25,000 for most offerings. At this minimum, you gain access to a single DST investment in a professionally managed commercial property. The platform maintains over 100 offerings at any given time across multiple real estate sectors.

Accreditation Requirements

Most DST offerings require accredited investor status: net worth exceeding $1 million (excluding primary residence) or annual income exceeding $200,000 individually ($300,000 jointly). Some REIT offerings are available to non-accredited investors.

Liquidity --- How Do You Get Your Money Out?

These are illiquid investments. Typical holding periods run 7-10 years. There is no secondary market for trading shares. You are locked in until the underlying property is sold or the trust terminates. This is the nature of DST structures and 1031 exchanges --- the tax benefits come with liquidity constraints.

Historical Returns

1031 Crowdfunding reports typical returns of 5-7% annually, based on data since 2014. Returns are market-dependent projections and vary by offering.

Past performance is not indicative of future results. These figures are self-reported by 1031 Crowdfunding and have not been independently verified by ModernAlts.

Regulatory and Legal Structure

1031 Crowdfunding operates under SEC Regulation D (506b and 506c) for accredited investor offerings. Securities are offered through Capulent LLC, a FINRA-registered broker-dealer affiliated with the platform. Investments are structured as Delaware Statutory Trusts and REITs.

Pros

• Purpose-built for 1031 exchanges with turnkey properties ready to meet IRS 45-day identification deadlines
• Comprehensive due diligence including audit reports, financial forecasts, and sponsor track records
• Over 100 offerings available at any given time across multifamily, industrial, storage, and NNN sectors
• White-glove customer service with 4.9-star Google rating and A+ BBB rating
• Experienced management team with $3.4 billion in cumulative real estate transactions
• Professional property management with investors as passive beneficiaries

Cons

• High upfront fees of 5-7% plus additional embedded commissions significantly erode returns
• Long holding periods of 7-10 years with no secondary market
• $25,000 minimum investment is notably higher than general crowdfunding platforms
• Complex DST legal structures may be difficult for investors to fully evaluate
• Some customer service issues reported including slow responses and occasional payment delays
• Returns are projections only and not guaranteed

The Bottom Line

1031 Crowdfunding fills a specific niche well. If you are an accredited investor executing a 1031 exchange, the platform's deep inventory of turnkey DST properties and focus on meeting IRS deadlines is genuinely valuable. The A+ BBB rating and 4.9-star Google reviews suggest most clients are satisfied with the service.

The trade-off is cost. Between the 5-7% transaction fees, additional embedded commissions, and qualified intermediary fees, you are paying a premium for convenience. Over a 7-10 year hold at 5-7% annual returns, those upfront fees take a meaningful bite out of total returns.

If you do not specifically need a 1031 exchange vehicle, there are cheaper ways to invest in commercial real estate. But for the investor who needs to park proceeds from a property sale quickly and compliantly, 1031 Crowdfunding is one of the more established options in this space.

ModernAlts may receive compensation if you open an account with platforms reviewed on this site. This does not influence our editorial ratings or analysis. Alternative investments involve risk, including possible loss of principal. Past performance is not indicative of future results. Nothing on this site constitutes investment, legal, or tax advice.