1031 Crowdfunding

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.

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'.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.