1031 Exchange into a Fund Like the Ones on Fundrise

[Joseph M.]

Can you do a 1031 exchange from a rental property into funds like the ones on fundrise.com?

[Drew Reynolds]

@Joseph M., our pal, @Dave Foster is (as always) correct. Generally speaking, the only 2 legal entities that allow multiple investors to pool 1031 exchange proceeds are the Tenant-in-Common (TIC) and Delaware Statutory Trust (DST). The closest thing to a "fund" with 1031 exchange proceeds would be for an investor to make several smaller investments in DSTs, perhaps even focusing on DSTs which own multiple properties - in a way, creating your own "fund". Of course, this will still somewhat be limited by the amount of exchange proceeds available and may result in needing to manage several exchange "rollovers" in the future. TICs and DSTs work for a lot of investors, but they (like any investment) are certainly not a "one size fits all".