Deferred, a technology-powered Qualified Intermediary transforming 1031 exchanges for everyday real estate investors, has secured $3.6 million in seed funding. This funding round was led by B Capital and Fika Ventures, with additional support from strategic investors, including founders and executives.
Launched in 2024 by entrepreneurs Judd Schoenholtz, Alex Farrill, and Aaron LaRue, Deferred modernizes and democratizes the 1031 exchange process to make tax-deferred real estate transactions more accessible, secure, and efficient for all investors. And 1031 exchanges enable investors to defer capital gains taxes when selling a property by reinvesting the proceeds into another property.
Even though 1031 exchanges represent tens of billions in annual transaction volume, a small percentage of eligible real estate deals take advantage of the tax break. Deferred addresses this gap with a software-powered approach that streamlines exchanges, enhances security, and eliminates unnecessary fees.
Some of the key features include:
— AI-Driven Compliance & Automation to reduce manual tasks and simplify the exchange process.
— Robust Fund Security that leverages secure transaction rails for superior fraud prevention and transparency.
— No Fee Exchange Model which eliminates traditional exchange fees and sharing interest earned on held funds with clients.
This seed funding round follows the company’s recent acquisition of Plenti Financial, formerly 1031 Exchange Advantage, a Qualified Intermediary with experience facilitating nearly 7,000 1031 exchanges. Led by experienced real estate attorney David Greenberger who brings over 30 years of experience in the industry, Plenti has a proven track record of compliance excellence and customer satisfaction.
What the funding will be used for: This funding will advance Deferred’s efforts to democratize real estate investing by leveling the tax playing field between institutional and everyday investors, ensuring broader access to valuable tax advantages historically leveraged by only institutional investors.
KEY QUOTES:
“At Deferred, we’re redefining what it means to be a Qualified Intermediary by combining cutting-edge fintech infrastructure with deep real estate industry expertise. This funding enables us to expand access to 1031 exchanges, ensuring that every investor—not just institutional players—can leverage this powerful wealth-building tool.”
Judd Schoenholtz, Co-Founder and CEO of Deferred
“In just a few months, Judd and the Deferred team have streamlined a traditionally complex process, making 1031 exchanges more accessible and efficient. Their transformative platform provides significant tax advantages while simplifying a historically cumbersome system. Deferred exemplifies the kind of AI-enabled innovation we seek to support—modernizing industries and unlocking new opportunities. We’re excited to partner with Judd, Alex, Aaron, and the team as they reshape the 1031 exchange landscape.”
Gabe Greenbaum, General Partner at B Capital
“We are thrilled to partner with the Deferred team. They are applying innovative AI technology to a long-standing and real-world, practical use case while unlocking value for thousands of people and communities. Most importantly, they are doing it seamlessly and securely for their clients of all sizes.”
Arteen Arabshahi, General Partner at Fika Ventures
