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Section 1031 has been part of the U.S. tax code since 1921. At its core, the rule is simple: if you trade one property for another without receiving cash, you aren’t taxed on your paper gains.
1031 exchanges have fueled trillions of dollars of real estate activity over the past century—especially for institutional investors who have the knowledge and resources to leverage them. By encouraging more transactions and freeing up capital that might otherwise be taxed, property owners reinvest in new properties, improving housing supply and contributing to broader community development.
Yet for many everyday real estate owners, 1031 exchanges remain daunting. Despite the benefits, less than 10% of qualifying real estate sales take advantage of this powerful strategy—meaning that the vast majority of individual investors miss out on both the tax advantages and the potential to reinvest to drive economic growth.
Why, after 100 years, are 1031 exchanges still so underutilized?
We believe the answer begins with Qualified Intermediaries—the companies that facilitate 1031 exchanges. Most have little incentive or capability to modernize, so the industry remains stuck with:
- Outdated, document-intensive processes
- Limited investor tools for managing exchanges and ensuring compliance
- Inefficient offline banking and manual wire procedures
- Opaque pricing models that lead with a fee but monetize by other means
That’s why Deferred is launching a Qualified Intermediary—dedicated to advancing the industry through expanded access to 1031 exchanges and increased opportunities for all investors.
Deferred: the First Fintech-Native 1031 Qualified Intermediary
Financial services have evolved dramatically. You can apply for a mortgage online, manage your checking account with zero fees, and transfer money digitally in seconds. Exchange transactions, however, have largely been left behind—until now. We’re building a radically different experience:
- Software-Driven
We’re building a modern, AI-powered platform to simplify the process, automate tax compliance, and reduce manual tasks. - Robust Security of Funds
Our fintech infrastructure is built on secure transaction rails, with funds held in FDIC-insured, segregated accounts at trusted banking partners. Our clients enjoy full transparency and superior safeguards against fraud and lost funds. - No Fees → More Exchanges
We don’t charge unnecessary exchange fees, and we share a portion of the interest earned on held funds with our clients. Our No Fee Exchange means all investors can confidently start an exchange.
By making 1031s more accessible, Deferred will enable every investor to exchange into new properties—revitalizing neighborhoods and fueling economic growth. And this is just the start of our journey…
Announcing $3.6M Initial Funding
We’re thrilled to announce that we’ve raised $3.6 million from two deeply aligned investment firms—B Capital and Fika Ventures—both with substantial experience supporting real estate technology businesses and the Los Angeles startup ecosystem. We’re also proud to welcome over a dozen strategic investors, including founders and executives from Ramp, Zillow, SoFi, Compass, Opendoor, Plaid, and Newfront.
Their support reinforces our commitment to revolutionize the 1031 exchange process and make real estate transactions simpler, more transparent, and lower cost for everyone.
Plenti Financial Acquisition—Closed in Q4 2024
Compliance and operational excellence are at the heart of our approach. That’s why we acquired Plenti Financial (also known as 1031 Exchange Advantage) founded and led by real estate attorney David Greenberger. With 30 years of experience facilitating nearly 7,000 exchanges—and a proven industry record—David’s team brings unrivaled expertise. Equally important, they share our obsession with client satisfaction, reflected in their 100% 5-star ratings from hundreds of Google reviews.
Now fully integrated into the Deferred platform, Plenti’s deep experience provides a foundation of trust and support as we scale.
Join Us in Shaping the Future of Real Estate Transacting
We’re just getting started. If you share our vision—or if you’re looking to make your next 1031 exchange simpler, safer, and more cost-effective—let’s connect. Visit us at Deferred.com to learn more.
