--- title: "1031 Crowdfunding Review" url: https://altstreet.investments/platforms/reviews/1031-crowdfunding kind: platform-review updated: 2026-11-04 description: "1031 Crowdfunding review: a DST marketplace and sponsor, its own offerings sold through a broker-dealer the founder partly owns, fees, liquidity and disputes." publisher: AltStreet (https://altstreet.investments) license: Public factual pages may be read, quoted and cited with attribution and a link. Bulk redistribution is not permitted. --- # 1031 Crowdfunding Review 1031 Crowdfunding lists Delaware Statutory Trust offerings for investors completing 1031 exchanges, most from other sponsors, and sponsors its own DSTs, bridge loan funds and a private REIT. Its own offerings are sold through Capulent LLC, a broker-dealer in which the founder, Edward Fernandez, holds a 10% to 25% stake; Fernandez faces 20 pending customer arbitrations over DSTs he sold from another sponsor. AltStreet score: 24.7 (F), scored November 4, 2026. Method: https://altstreet.investments/platforms | Field | Value | | --- | --- | | Platform | 1031 Crowdfunding | | What it is | DST Marketplace and Sponsor | | Asset class | Real Estate / Delaware Statutory Trusts | | Website | 1031crowdfunding.com | | Review first published | November 4, 2026 | | Last updated | November 4, 2026 | | AltStreet relationship | None: no affiliate, sponsorship or partnership | ## The short version 1031 Crowdfunding is two businesses on one site: a marketplace of DSTs, mostly from third-party sponsors, for investors who must place 1031 exchange proceeds inside 180 days; and a sponsor of its own DSTs and funds, with $156.6 million sold across 17 vehicles on their latest Form Ds. The site tells investors they 'do not pay a fee to use the portal'; the Form Ds of its own DSTs estimate sales commissions of 5.3% to 10.0% of each offering. AltStreet located no public performance reporting for any of its own vehicles; offering documents and any investor reporting sit behind registration. - **5.3% to 10.0%** Estimated sales commissions on the twelve DSTs the firm sponsors, as a share of each offering amount on their Form Ds. These are estimates the form asks for, not amounts paid. The Form Ds also estimate gross proceeds to be paid to executive officers, directors or promoters ($4.31 million on Portfolio 4's $30.5 million offering); the form does not say what those payments are for, and AltStreet does not add them to the commission figure. - **20 pending** Customer arbitrations filed between June 2025 and September 2026 against Edward Fernandez, the founder, as a Capulent registered representative; 19 concern DSTs sponsored by Versity Investments (Crew). The stated damages add to $5.36 million, a sum that includes the low end of one $100,000 to $500,000 range and nominal figures where claimants did not state an amount. He denies each claim. - **$156.6M** Amount sold across the 17 vehicles the firm sponsors, from each one's latest Form D. A floor: seven of the twelve DST notices were never amended, so they show only the first weeks of sales. - **215** Filers returned by an EDGAR full-text search for Capulent on Form Ds since 2017: 206 other sponsors' offerings and 9 of the firm's own. The search misses the other 8 of its 17 vehicles, whose Form Ds also name Capulent, so the true count is at least 223. A filing naming Capulent shows its role in the distribution; it does not show that the offering was listed on 1031 Crowdfunding's site. - **15.0%** Interest on a 'Bridge Fund' promissory note advertised on the home page, $100,000,000 offered, 7.0% paid currently and 8.0% accrued to April 30, 2030. AltStreet could not identify a corresponding Form D. Data note: Form D figures are the amounts sold on each vehicle's latest notice as of November 4, 2026. Commission and related-party figures are the estimates the Form D asks for, not amounts paid or received. Dispute figures are the claimants' stated damages on BrokerCheck, not findings or awards. ## Key figures | Figure | What it is | Context | | --- | --- | --- | | 5.3% to 10.0% | Estimated sales commissions, own DSTs | Share of each offering on the Form Ds; estimates, not amounts paid. | | 20 | Pending customer disputes, founder | 19 about Versity / Crew DSTs; denied. | | $156.6M | Sold, 17 own vehicles | Latest Form Ds; seven DST notices never amended. | | 223+ | EDGAR filers naming Capulent | Since 2017; 206 are other sponsors' offerings. | ## Verdict 1031 Crowdfunding gives exchange investors a fast way into many sponsors' DSTs. Its own offerings are sold by a broker-dealer the founder partly owns, and their results are not public. Treat its listings as a starting list, and diligence each sponsor and fee table independently. **Best for** - Accredited 1031 exchange investors who need a broad DST menu on a short clock and will read each PPM themselves **Look elsewhere if** - You want the platform's vetting to stand in for your own diligence - You may need the money before the property sells - You are not accredited **Strengths** - Many DST sponsors in one place, with current cash flow, loan-to-value and equity offered on each card - Form Ds filed for every sponsored vehicle, with cost lines stated - Capulent LLC has no disclosures on its firm record **Limitations** - A broker-dealer partly owned by the founder sells its own offerings - No public performance reporting located for its own DSTs or funds - Fees beyond the Form D estimates are in PPMs behind registration - Pending customer arbitrations against the founder and the broker-dealer ## Who it fits | Investor | Fit | Why | | --- | --- | --- | | Accredited investors completing a 1031 exchange who will diligence each sponsor themselves | neutral | | | Investors relying on the platform's vetting | poor-fit | | | Investors who may need their capital within ten years | poor-fit | | | Non-accredited investors | poor-fit | | ## Questions **Is 1031 Crowdfunding legit?** It has operated since 2014 and its own offerings are filed with the SEC and sold through a FINRA-registered broker-dealer, Capulent LLC, which has no disclosures on its firm record. Its founder, Edward Fernandez, holds 10% to 25% of Capulent and faces 20 pending customer arbitrations, 19 over DSTs from another sponsor, Versity (Crew); none has been decided, and he denies each. **What fees does 1031 Crowdfunding charge?** No fee to use the portal. The cost is inside each offering: on the firm's own DSTs the Form Ds estimate sales commissions of 5.3% to 10.0% of the offering and, separately, proceeds to be paid to officers and promoters, and the PPMs set acquisition, asset management and disposition fees. The marketed cash flow rates are 'net of fees'. **How does 1031 Crowdfunding make money?** From the offerings it sells. The site says revenue 'is already built into the property contract'; the Form Ds of its own offerings name Capulent LLC beside estimated sales commissions, and estimate proceeds to related persons. **Who sells the investments?** Capulent LLC (FINRA CRD 155155) sells the firm's own offerings. BrokerCheck lists Edward Eric Fernandez, the founder, as a member owning 10% but less than 25%, without directing the firm; the CEO, Justin Bachman, owns 75% or more. Capulent is also named on 206 other sponsors' Form Ds since 2017. **What are the complaints against Edward Fernandez?** Twenty customer arbitrations filed between June 2025 and September 2026, all pending. Nineteen allege that DSTs or notes from Versity Investments or Versity Invest (Crew), such as Vintage DST, Wolf Run DST and Hayworth Tanglewood DST, were unsuitable or that sponsor risks were not adequately disclosed; the stated damages add to $5.36 million, a sum that includes the low end of one range and nominal figures where no amount was stated. His responses deny the claims and attribute losses to the sponsor's failure. **Does 1031 Crowdfunding publish financial statements?** Not for any of its own DSTs, funds or its REIT: they are Regulation D offerings, which file only a Form D notice. The one audited statement on record is the broker-dealer's: Capulent LLC's statement of financial condition at March 31, 2026 shows total assets of $510,718, members' equity of $343,408 and net capital of $302,685, and discloses pending FINRA arbitrations over DST recommendations with no amount accrued. Capulent's income statement is not public. **What is the minimum investment?** Typically $25,000 to $100,000 per DST depending on the sponsor; the firm's own DSTs are $25,000 and Covenant Housing REIT is $5,000. Accredited investors only. **Can I get my money out of a DST?** Not through a redemption: there is no redemption program, and capital returns when the property is sold. The site describes DSTs as 'Illiquid; hold periods typically run 5-10 years and end when the property is sold.' A transfer of an interest before then is restricted by the trust documents, and there is no organized secondary market. **Does 1031 Crowdfunding sponsor its own DSTs?** Yes. Twelve since 2018, most recently four assisted living and memory care portfolios (Portfolios 4 and 5, Senior Housing DSTs 11 and 12), plus three Bridge Funds, a private credit fund and Covenant Housing REIT. They are listed beside third-party DSTs on the same site. **How have its own DSTs performed?** AltStreet located no public performance reporting: no financial statement, distribution history or sale outcome for any of the twelve appears on the public pages or on EDGAR, and seven of their Form Ds were never amended. Investors may receive reporting behind registration. Portfolio 5 was marketed at 82.5% occupancy as of mid-2024. **What is the 15% Bridge Fund note on the home page?** A promissory note advertised at 15.0% interest, $100,000,000 offered, 7.0% paid currently and 8.0% accrued until April 30, 2030, 'exclusively available through 1031 Crowdfunding'. AltStreet could not identify a corresponding Form D. Ask which entity issues it, under which exemption, for its filing and for its financial statements before investing. **Is 1031 Crowdfunding a fiduciary?** The site says 'As fiduciaries, our experts can walk you through investment options'. 1031 Crowdfunding, LLC has no adviser registration of its own, and its offerings are sold through a broker-dealer, whose obligations depend on the capacity in which it acts. Ask which entity owes the fiduciary duty the page describes, in what capacity, and under what agreement. **How do DSTs work for a 1031 exchange?** A DST holds title to the property and investors own beneficial interests that count as replacement property under IRS Revenue Ruling 2004-86, so the gain on the property sold can be deferred. The exchange must meet the 45-day identification and 180-day closing deadlines. ## Update history **November 4, 2026: Review published** First published after an editorial pass: commission figures kept as Form D estimates, the Capulent filer counts reconciled, the master-lease direction corrected, the founder's Capulent stake stated (10% but less than 25%, not directing the firm), and performance and liquidity statements limited to what public sources show. ## Evidence appendix Platform website captured November 4, 2026. Every Form D of the 17 sponsored vehicles; an EDGAR full-text search for Capulent on Form Ds since 2017; BrokerCheck records for Capulent LLC and Edward E. Fernandez; 22 site pages captured November 4, 2026; AltStreet enforcement tables; CourtListener. Offering documents behind registration were not read. **Highlights** - Site: 'Investors are getting 100% of cash flow and do not pay a fee to use the portal.' - Form Ds: estimated sales commissions of 5.3% to 10.0% of the offering on the twelve sponsored DSTs. - BrokerCheck detailed report: FERNANDEZ, EDWARD ERIC, member since 12/2019, '10% but less than 25%', does not direct management or policies. - BrokerCheck: 20 customer disputes against Fernandez, all pending, 19 about Versity / Crew DSTs. - Site: a $100,000,000 'Bridge Fund' promissory note at 15.0% maturing April 30, 2030; no corresponding Form D identified. **Primary source pages** - 1031crowdfunding.com home, investment platform, DST properties, Portfolio 4 and 5, bridge funds, REITs and FAQ pages (captured November 4, 2026) - SEC EDGAR Form D and D/A filings of the 17 sponsored vehicles - FINRA BrokerCheck: Capulent LLC, CRD 155155 - SEC EDGAR: Capulent LLC Form X-17A-5, statement of financial condition at March 31, 2026 (CIK 1501159, filed May 20, 2026) - FINRA BrokerCheck: Edward E. Fernandez, CRD 2956661 (customer disputes) - EDGAR full-text search: Form Ds naming Capulent, 2017 to 2026 ## Related - Full review (HTML): https://altstreet.investments/platforms/reviews/1031-crowdfunding - Every platform review: https://altstreet.investments/platforms/reviews - Methodology and scoring: https://altstreet.investments/platforms - Category hub: https://altstreet.investments/categories/fractional-real-assets --- Source page: https://altstreet.investments/platforms/reviews/1031-crowdfunding Machine index: https://altstreet.investments/llms.txt AltStreet reads what platforms, funds and issuers file with the SEC and what they tell investors, and publishes the difference. Figures are as filed or as captured on the date stated; nothing here is investment advice.