Platform Provided Due Diligence:
Quality of Deals:
Website - CrowdStreet
Phone - 888 432
SEC REG - USES 506(c) - Open Investments can be advertised and publicly discussed
CrowdStreet allows accredited investors to purchase real estate investments through their platform, which is essentially syndication. Investors can from a wide variety of choices, sign legal documents online and maintain their portfolio. Unlike many sites, CrowdStreet features both debt investment and equity opportunities. These include a wide variety of projects including retail, office, industrial and land.
CrowdStreet reviews every potential opportunity and rejects those that do not meet their strict standards. At this time only accredited investors can look at the investments on CrowdStreet.
Usually, these are wealthy individuals interested in real estate investments, but are interested in combining their resources with other investors. The site benefits accredited crowdfunding investors because now they can see opportunities that were potentially only available to institutional investors were private individuals.
Because they provide wide access to new opportunities, a larger pool of real estate options becomes available. Investors can put their money into a variety of properties across a wide geographic range with a small capital outlay.
Investors see a return on their real estate investment when CrowdStreet distributes the money. Distributions depend on whether the investor has selected equity, debt or a form of hybrid investment. Investors receive distributions in the form of a share of profits for equity investors. Debt investors receive their distribution at a previously agreed-upon interest rate. Both investors would also receive distributions when a property is sold.
There is no fee to join the platform and get involved with investment opportunities. There is a minimum investment for individual opportunities, and some are very low-- in the area of $10,000.
CrowdStreet may open their platform to nonaccredited investors in the future depending on the outcome of the Security and Exchange commission's decision on updating regulations of the JOBS Act.
CrowdStreet announced in September of 2014 and they had received $800,000 in seed funding from a group including Green Visor Capital and Seven Peaks Ventures with additional participation from the Portland Seed Fund. They have posted crowdfunding real estate properties worth more than $100 million.
If this CrowdStreet review does no tell you what you want to know, read what investors have to say.
Share your experience. Rate and comment!
Feb 20, 2017
I have two investments on CrowdStreet and was happy with the general process and with the offerings (although deal flow has slowed). I gave a slightly lower rating on due diligence as I was less than impressed with the Alpha Fund since it had a sponsor that was new to doing a general fund and there were certainly some hiccups with that deal (which might be straightened out now).
On the actual experience being able to evaluate deals:
- Consistent placement of materials and simple layout of the deal is a big plus (edges out RealCrowd)
- A sample distribution is pretty consistently shown in the deal analysis
- Easy to find webinar (if available) and supporting material
Experience of placing an offer and going through to funding is a nice experience. BTW, CrowdStreet powers the crowd funding platform of other clients (like ArborCrowd).
Feb 18, 2017
CrowdStreet is arguably the best platform out there for deal volume and offering diversity. Investors are not charged any fees and they offer a compelling technology platform for Sponsors to manage their investor communications. I've been very pleased with their Investor Relations team on an individual level and their weekly updates are very informative..
Feb 16, 2017
I have invested in 3 major sites, Crowdstreet, RealCrowd, and Realty Shares. The largest percentage of my investments have been with Crowdstreet due to the following reasons: a) Their Investment Relations Manager, Manish Arora goes beyond the call of duty, answering my questions (or getting the sponsor to answer them), and is always available to answer any questions/concerns I have. He also is very knowledgeable in his job, b) Their deal flow in both quantity and quality is better than the others out there, c) Their administration/accounting of your investments is far superior to RealCrowd and similar to Realty Shares, and d) I prefer the platforms that allow me to work directly with the Sponsor, although I do like some of Realty Shares deals, which is why have used them second most to CrowdStreet..
Jan 30, 2017
Like RealCrowd, they are a listing platform, They do not charge investors a fee, but do charge the sponsor a listing fee. They have a higher deal flow, but looser underwriting standards than Real Crowd in my opinion. They have some great sponsors listings and I have be happy with all of my investments on CrowdStreet, That being said, all of them are from the last 12 months, so not much history to rely on. None of my deals have gone full cycle. Reach Crowd and Crowdstreet are the two platforms I check the most often for new investments..
Jan 24, 2017
Crowdstreet is a good platform to look for deals to invest in. I will say that I am not confident of their sponsor due dilligence, either in terms of sponsor background or in terms of the terms being offered. This is based on experience
I have to give them credit on the platform fees aspect. They model is such that the sponsors view them as a low cost means to get new investors, and their white label and reporting options seem to be attractive to sponsors as well.
In terms of deal quality, it is all over the map. Some great, some not so great. So you really have to do your own due dilligence.