How 1031 Crowdfunding Opens Real Estate Opportunities for Small Investors
Real estate has long been a wealth-building tool for individuals and institutions alike. Traditionally, however, direct property ownership required substantial capital, making it difficult for small investors to participate in high-value commercial projects. With the advent of 1031 Crowdfunding , access to investment-grade real estate has become more inclusive, offering opportunities that were once reserved for large-scale investors. What Is 1031 Crowdfunding? At its core, 1031 Crowdfunding combines the principles of Section 1031 of the Internal Revenue Code with modern online investment platforms. A traditional 1031 exchange allows property owners to defer capital gains taxes by reinvesting proceeds from the sale of one investment property into another qualifying property. Through crowdfunding, multiple investors can pool resources to collectively purchase institutional-quality properties, such as apartment complexes, retail centers, or medical office buildings. This structure enable...