Aliso Viejo, CA, September 23, 2015 (Newswire.com) - 1031 Crowdfunding LLC announced today that the Company will soon offer a Bridge Fund to individual investors interested in lending capital to large real estate firms to bridge the gap between the capital needed to purchase real estate and the demand for real estate by 1031 exchange investors.
Currently, there is a high demand by 1031 exchange investors for suitable exchange properties. DST sponsors have been closing on properties as quickly as they have been able to in order to make enough properties available to exchange investors. However, the number of properties these sponsors can purchase is limited by the amount of capital they have available to them. There is a gap between the capital DST sponsors have to purchase properties and the capital 1031 exchange investors are looking to invest into DST properties. For years, private equity and venture capital firms have taken advantage of tremendous opportunities to bridge this gap. These companies have achieved significant returns as a result of lending money on short term basis to successful, large real estate companies for the purpose of buying additional real estate.
1031 Crowdfunding is now making the opportunity to bridge this gap available to individual investors. With Bridge Funds, individual investors pool their investment funds together to make short term loans to DST sponsors. The funds are used by the sponsors to purchase properties to create DST Funds to meet the demand for 1031 exchange properties. When 1031 exchange and cash investors purchase shares of the DST Fund, the sponsor is able to repay the loan with interest to the Bridge Fund.
Bridge Funds are an opportunity for real estate investors to invest in institutional real estate as the lender rather than the borrower and owner of the real estate. Bridge Funds will be available in the coming weeks for a minimum investment of $25,000 and are expected to produce an 8% return.
“We are excited to add a Bridge Fund to the list of products we are making available to real estate investors,” said 1031 Crowdfunding Founder and CEO, Edward Fernandez. “Since the DST Funds on our platform have attracted so much interest, Bridge Funds are a natural addition to our platform that will synergize our DST Funds and give investors diverse investing options.”
For more information, visit www.1031Crowdfunding.com or call (844) 533-1031.
About 1031 Crowdfunding LLC
1031 Crowdfunding provides a range of quality properties for investors seeking a 1031 exchange through a Delaware Statutory Trust. With a compliant online investment platform, investors research opportunities, make investments with ease, and receive monthly updates. 1031 Crowdfunding was founded by Edward Fernandez along with Alfred Pizzurro, Marcus Kurschat, William Erickson and Tim Barrett, aggregating 120 years of their combined experience in the securities and real estate markets.
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