1031 Crowdfunding

1031 Crowdfunding is an online real estate investing platform that specializes in facilitating 1031 exchanges through the use of Delaware Statutory Trusts (DSTs). The company acquires and manages income-producing commercial real estate assets, with a focus on senior housing facilities such as assisted living and memory care centers. As of January 2024, 1031 Crowdfunding owns and operates senior housing properties across seven states, primarily in the western US.

1031 Crowdfunding's business model revolves around structuring DST investments that qualify for 1031 exchanges, allowing investors to defer capital gains taxes by reinvesting the proceeds from the sale of a property into a like-kind replacement property. The platform sources deals from third-party sponsors and through its affiliate, 1031 CF Properties, creating its own DST offerings. The minimum investment requirement for most DST offerings is USD 25,000, and the holding periods typically range from five to 10 years.

The company's DST portfolios comprise stabilized properties with high occupancy rates, typically above 90%. These assets generate steady cash flow, with projected returns averaging between 5% and 7%. Additionally, 1031 Crowdfunding aims to drive share price appreciation through opportunistic and value-add strategies, such as acquiring underperforming assets, replacing operators, and leasing up vacant properties.

In November 2023, 1031 Crowdfunding launched its first private REIT, the Covenant Senior Housing REIT, Inc. (CSHREIT). As of its launch, the REIT held three assisted living and memory care facilities in Oregon and California, with a total asset value of USD 51.25 million and an occupancy rate of 89%. The REIT targets a 6% cash-on-cash return for investors and aims to grow its portfolio to USD 2 billion in senior housing assets within five years.