Crowdstreet Reviews & Ratings
Type:
Real Estate
Focus:
Debt & Equity

Overall:

Platform Provided Due Diligence:

Platform Fees:

Quality of Deals:

Website - CrowdStreet

Phone - 888 432-7693

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 choose 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 - though the vast majority of these are equity investments. 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 as 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’s sponsors distribute 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 offerings, 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.

CrowdStreet At A Glance

Here in our CrowdStreet review, we’ll provide you with both an in-depth look at what this real estate crowdfunding platform can provide for you as well as a more generalized look to help you make your decision. Here’s where we get started  as far as due diligence is concerned: the investments CrowdStreet offers at a glance.

High Levels of Research:

For every individual investment, CrowdStreet provides a large amount of detailed research for real estate investors to learn about each project. This includes an expansive video webinar. These webinars are given live and will allow you to submit questions on fees or returns directly to the project’s sponsor, or you can watch the video at some later time at your convenience. It’s one of the services CrowdStreet offers that sets it aside from other crowdfunding platforms, showcasing a desire to provide institutional quality assets to those looking to invest. This is obvious in how CrowdStreet handled the onset of the coronavirus pandemic, where it created new investing standards to maintain this institutional quality by answering the question as to why are these deals important right at this moment. The CrowdStreet marketplace also reveals how potential deals are being evaluated through a new Investment Thesis feature and a “StreetBeats” video series, which provides individual investors some insight into how the markets are changing on a weekly basis. 

High Levels of Investment Guidance: 

Each real estate investing project page that CrowdStreet maintains offers an extensive section on resources, each of which is loaded with articles and videos on a number of different topics related to commercial real estate investing and real estate crowdfunding. Topics include how to review investment offerings and how to understand an internal rate of return, and the platform also includes a quick start guide for those new to CrowdStreet to get up to speed quickly.

No Support for Non-Accredited Investors:

While this may change in the future, CrowdStreet does not offer any support to non-accredited investors. Investing is instead reserved exclusively for individuals who have a high net worth of $1 million minimum excluding their primary residence - or, alternatively, earn at least $200,000 a year ($300,000 for couples). This means that non-accredited investors with a lower net worth are locked out of accessing any of the commercial real estate investment assets that the CrowdStreet marketplace offers. Thankfully, CrowdStreet isn’t the only crowdfunding investing platform out there - many of these other platforms offer investing opportunities to an investor that isn’t accredited. However, requiring that all investors be accredited protects less-affluent prospective investors than becoming entangled with an investment they can’t afford, either through management fees that would be too high for them or financial ruin in the case of a deal going south.

High levels of complexity:

The level of complexity of CrowdStreet’s investing offerings are, in a word, high. Investors looking for more simplified deals are not going to find them here; while each CrowdStreet marketplace property is different and operates under different circumstances such as which fees it may be subject to, it will be up to you to conduct your due diligence and ensure which of these offerings fits your investor needs. With the REIT market fluctuating with the ebbs and flows of the market at large, it can often be difficult in determining an entry point. Making matters worse, the pandemic led to REITs plummeting by 50% - sometimes more - during the onset of the COVID-19 pandemic, and this leads to even more investor angst as well of course. There’s always a lot going on in the world of real estate investment, and all these factors together combine to make it a complex endeavor to say the least.

The Details

CrowdStreet makes it easy to invest in all sorts of commercial real estate deals on a national level. The platform accomplishes this by pairing project developers with individual investors. These developers are vetted by CrowdStreet before introducing them to individual investors, and this includes a review of both reference checks and background checks to increase investor trust. This is especially helpful for any investor who might not be able to devote the resources to such a process themselves. However, it’s important to ensure that you do your own due diligence before you invest in any property types, regardless of what crowdfunding platforms tell you, especially when it comes to understanding the fees you might face upon investment.

CrowdStreet provides the accredited investor with a multitude of choices when it comes to commercial real estate investment. You can pick an individual property to invest in, which will then grant you access to the sponsor of the project directly; you can also buy into a CrowdStreet fund, a deal which provides you access to a managed portfolio of diverse marketplace projects operating much in the same way a mutual fund would. 

Minimum investment amounts differ depending on offering. The typical commercial real estate deal will run an investor around $25,000, though upon review it is possible to find a commercial real estate asset that has a minimum investment amount as low as $10,000.

Deciding if CrowdStreet is Right for You

There’s plenty to like about CrowdStreet as an investment platform. It’s especially ideal for deep-pocketed investors, as evidenced by its status as an accredited investor-only access. Its high minimum investment amounts reinforce that, making CrowdStreet firmly out of range for anyone who isn’t already comfortable enough to risk that kind of money on investing. As you should never invest more money than you’re comfortable losing, this isn’t such a terrible thing - the last thing you want is a non-accredited investor going in too deep and losing their shirt.

The fact that CrowdStreet makes real estate investing more accessible, even if it’s just to accredited investors, is a good thing. It’s a long-established fact that commercial real estate, whether it’s an office building that you’re managing or a single-family dwelling that’s operating as an investment property, is a smart way to diversify your portfolio. The best way to invest in commercial real estate is arguably through a publicly traded REIT, and a number of these REITs are often much more accessible than the projects that CrowdStreet provides for its investors. 

Publicly-traded REITs are also often considered a safer type of asset, as these funds are much more liquid. It’s an easier process to extricate yourself from a REIT to access your returns, and a REIT mutual fund is excellent for diversification as well. That being said, these funds aren’t always ideal; they’re tied to the stock market, often moving in tandem. This is where CrowdStreet comes in, as a preferred equity deal that allows you to invest in properties directly often offers better diversification. A REIT can drop in price, but the value of a real estate asset could hold fast in comparison. In some instances their value could even rise. That’s a pretty good deal in comparison.

If you’re looking for a well diversified approach to target your investment opportunities, CrowdStreet may be an excellent alternative to a publicly-traded REIT. If you have the time to properly vet each asset during the process, if you can sit on your deal for years for long-term investing, and if you’ve met the requirements of being an accredited investor, then then CrowdStreet can offer more than one excellent deal when it comes to adding commercial real estate your investment portfolio.

Due Diligence & Discussions

Share your experience. Rate and comment!

Bob Anderson

May 21, 2021

I do my in depth DD independently on every deal whether from CS or elsewhere. After all, I am my own master in doing deals instead of heavily rely on the any 3rd parties. All I need is the GOOD DEAL FLOW.
CS provides very good deal flow next to none. Their sponsor qualities recently (especially after Covid hit) have been superb and no retail investors would ever dream to invest with these sponsors let alone the min of $25K. I invested with some high quality sponsors via CS initially and continued my investments with them directly in may more deals.

I think a lot of comments here maybe the investors who stopped investing with CS for a while, so some of the latest developments/improvements are not known to them.

I think CS has matured substantially from the earlier days and their systems of both DD and investor management are much better now. Of course, being larger, they sacrificed some of the personal touches, but that true to any platform.
If I have any questions, I send them via the “questions” box on the deal page, I normally receive response within 24 hrs.

I try to be unbiased and agnostic to the source of deals but the merits of the deals themselves.

I think it serves me well.

Don Wallace

May 21, 2021

I started with CS in their early days, around 2016. It was a small company, I got to talk to a lot of senior leader from the company. At that time, I believe they talked to a lot of investors to fund the deal. There were not enough fund at that time. They have to care more about any investors they can get. I stopped investing in CS in 2019 due to varies issues you can find in the forum. I appreciated that they open a window for me. Without them, I may not get into CRE investment. But as my knowledge and relationship grow, I don’t see any point to invest with them anymore. I may miss one or two good deals, but it saves me time and energy to deal with them for the bad deals. How much energy you are willing to spend on a 25-50k deal for 4+ years due to varies issues?

They have evolved to be a diversify CRE platform with enough deals and investors. Investors would expect some good investments and bad investment but no accountability and serious response from the platform. I would argue it’s better to invest in S&P than through CS platform. Easier for liquidation, less paper work to manage and no need to deal with people that you give money but lose control totally. Assume an investor has 500k to put into CRE, like 10-15 deals with CS platform. If 3 deals turn out bad (I still have like 3 bad deals with CS), it’s a lot of troubles for investor to deal with, drag a lot of energy.

I am not saying CRE is bad, there are good sponsors out there. I am more comfortable writing a bigger check to good managers than writing many smaller check to CS platform sponsors.

Chris Falk

Aug 07, 2019

Hate to say it but my view on CS has shifted in the past year. I feel like they're pumping out too many deals which is leading to some deterioriation in quality. It seems like they miss some red flags with certain sponsors and they might have so many new people on the underwriting staff that inevitably some mistakes are be made. I'd prefer to see quality over qty, realizing quality is a subjective term. A few years ago a majority of the deals on the CS platform were higher quality IMO and I didn't need to make a 30 second decision whether to invest in a deal or not when it went live, as seems to be the case recently. Coincidentally or not, they're VC backed and have a lot of staff on payroll so I can imagine there's pressure to generate some ROI from above at this stage.  

Robert Fakheri

Aug 26, 2018

I am relatively new to CrowdStreet, but they have great deal flow and offer very attractive returns. Most deals are equity deals rather than debt deals. Their due diligence appears to be thorough. Most deals have minimum of $25k or higher, but a few are as low as $10k. One minor frustration I have had is trying to determine how the investment income is taxed. Most deals provided K1 forms annually which will provide income, depreciation, and capital gains info. However, very few of the sponsors are able/willing to provide projections for these numbers. Most deals seem to have significant depreciation so for many deals it seems you won't get hit with taxes until deal is fully closed and most of the income will be taxed favorably as capital gains.

 

The other slight nuissance is the paperwork and funding for deals. My prior experience is with ShareStates which is very easy to invest and fund deals after you are registered and verified as accredited investor. With ShareStates, you basically just click a few boxes to approve ACH transfer from your bank account (which you can save in your investor profile). With CrowdStreet, ACH transfer is often not an option so you have to send funds either by wire or mail. Also, you have to send funds directly to each sponsor so each investment requires different addressee information instead of one central place that distributes funds to sponsor. The paperwork for investor agreeemnt is also more onerous than I am used to with ShareStates.

But overall I am moving towards this platform because of deal flow, attractive returns, and favorable tax treatment of equity deals despite my minor frustrations.

Perry Pelton

Aug 16, 2018

I appreciate CrowdStreets depth of knowledge in CRE and the effort they go through to vet deals and work with sponsors to tailor their offerings to their investor base.

CrowdSteet also recently raised a significant amount of capital to grow the platform suggesting that they are in this for the long-haul. With these funds, they have accellerated their deal flow tremendously over the last few months giving investors a lot to choose from. 

Highly professional and open to feedback and continuous improvement, they recently implemented the ability for investors to communicate with each other through the platform. They also host meetings across the country providing education and face-to-face meeting opportunities between investors, sponsors and CrowdStreet leadership.

I have a total 5 deals through the platform. As with any investments, don't rely solely on the platforms due diligence. At the end of the day, it's your money in the deals, not theirs.
 

D Meeker

Mar 17, 2018

I've found CrowdStreet's deal flow to be exceptionally good vs. their competitors. The IR team is responsive and helpful in working out issues that sometimes come up with the sponsors. 

Burcin Ergun

Mar 12, 2018

CS is one the main sites that I use to find new RE deals with Crowd  Funding. I have been using the CS for more than 2 years. I like the fact that they have Webinars and very responsive investor relations team. 

Todd Fruhbeis

Feb 21, 2018

I like this site for the steady flow of deals they offer and the good job they do in organizing the deal terms and background/sponsor information.  There is also a wide variety of deal types and both funds and direct investments.  I have invested in two deals via a sponsor I met on this platform.  The Investor Relations team is very responsive and the calls they host are organized and run smoothly.  While CrowdStreet does their own due diligence, investors still need to do their own homework on both the deal terms/financials and the sponsor. I would recommend this site for anyone looking for a steady stream of deal ideas.  

T Wong

Nov 24, 2017

CS is one of the most popular portals for CRE investment.  The portal is generally well designed.  When/if I have observed "rooms for improvement", I provided them with my feedback and they are very receptive to my suggestions.  The IR (Investor Relationship) team is well staffed and they have always gone the "extra miles" to promptly response to my enquiries and/or to set up a direct and immediate connection with the sponsors.  In every deals that I have made, I have direct connection to the principals of the sponsors.  CS encourages/sets the typical minimum investment threshold to $25K reducing the financial exposure for the perspective investors getting to know the sponsors to whom they have no prior experience with.  All the above are excellent strategies / services / features of CS.  Most recently (early Oct 2017), I suggested CS to pay more attention to the quality of many deals when the sponsors only have minimal stake of equity (5% or even less).   I typically pay no attention to the deals when the sponsors do not have enough stakes (equity) in the projects.  However, knowing the business model of CS and others is to have more deals to flow through the platforms, the investors are encouraged to be more observance and selective in picking the right deals that they are comfortable with.  I'd like to see all the other crowdfunding portals can benchmark each other to identify their niches to make the crowdfunding ecosystem more healthy and vibrant.  

Kirby Loid

Nov 20, 2017

I am a member of a number of Crowd Funding websites but consistently find that I like the CrowdStreet platform best.   I do wish they had some group sharing feedback loop on sponsors and even platform.  Particulalry for sponsors 

Bill Scott

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).

 

Jack Bodden

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.

Richard A

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.

H S

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. 

D J

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.

 

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Rated 3.6/5 based on 38 customer reviews

Website - CrowdStreet

Phone - 888 432-7693

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 choose 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 - though the vast majority of these are equity investments. 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 as 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’s sponsors distribute 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 offerings, 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.

CrowdStreet At A Glance

Here in our CrowdStreet review, we’ll provide you with both an in-depth look at what this real estate crowdfunding platform can provide for you as well as a more generalized look to help you make your decision. Here’s where we get started  as far as due diligence is concerned: the investments CrowdStreet offers at a glance.

High Levels of Research:

For every individual investment, CrowdStreet provides a large amount of detailed research for real estate investors to learn about each project. This includes an expansive video webinar. These webinars are given live and will allow you to submit questions on fees or returns directly to the project’s sponsor, or you can watch the video at some later time at your convenience. It’s one of the services CrowdStreet offers that sets it aside from other crowdfunding platforms, showcasing a desire to provide institutional quality assets to those looking to invest. This is obvious in how CrowdStreet handled the onset of the coronavirus pandemic, where it created new investing standards to maintain this institutional quality by answering the question as to why are these deals important right at this moment. The CrowdStreet marketplace also reveals how potential deals are being evaluated through a new Investment Thesis feature and a “StreetBeats” video series, which provides individual investors some insight into how the markets are changing on a weekly basis. 

High Levels of Investment Guidance: 

Each real estate investing project page that CrowdStreet maintains offers an extensive section on resources, each of which is loaded with articles and videos on a number of different topics related to commercial real estate investing and real estate crowdfunding. Topics include how to review investment offerings and how to understand an internal rate of return, and the platform also includes a quick start guide for those new to CrowdStreet to get up to speed quickly.

No Support for Non-Accredited Investors:

While this may change in the future, CrowdStreet does not offer any support to non-accredited investors. Investing is instead reserved exclusively for individuals who have a high net worth of $1 million minimum excluding their primary residence - or, alternatively, earn at least $200,000 a year ($300,000 for couples). This means that non-accredited investors with a lower net worth are locked out of accessing any of the commercial real estate investment assets that the CrowdStreet marketplace offers. Thankfully, CrowdStreet isn’t the only crowdfunding investing platform out there - many of these other platforms offer investing opportunities to an investor that isn’t accredited. However, requiring that all investors be accredited protects less-affluent prospective investors than becoming entangled with an investment they can’t afford, either through management fees that would be too high for them or financial ruin in the case of a deal going south.

High levels of complexity:

The level of complexity of CrowdStreet’s investing offerings are, in a word, high. Investors looking for more simplified deals are not going to find them here; while each CrowdStreet marketplace property is different and operates under different circumstances such as which fees it may be subject to, it will be up to you to conduct your due diligence and ensure which of these offerings fits your investor needs. With the REIT market fluctuating with the ebbs and flows of the market at large, it can often be difficult in determining an entry point. Making matters worse, the pandemic led to REITs plummeting by 50% - sometimes more - during the onset of the COVID-19 pandemic, and this leads to even more investor angst as well of course. There’s always a lot going on in the world of real estate investment, and all these factors together combine to make it a complex endeavor to say the least.

The Details

CrowdStreet makes it easy to invest in all sorts of commercial real estate deals on a national level. The platform accomplishes this by pairing project developers with individual investors. These developers are vetted by CrowdStreet before introducing them to individual investors, and this includes a review of both reference checks and background checks to increase investor trust. This is especially helpful for any investor who might not be able to devote the resources to such a process themselves. However, it’s important to ensure that you do your own due diligence before you invest in any property types, regardless of what crowdfunding platforms tell you, especially when it comes to understanding the fees you might face upon investment.

CrowdStreet provides the accredited investor with a multitude of choices when it comes to commercial real estate investment. You can pick an individual property to invest in, which will then grant you access to the sponsor of the project directly; you can also buy into a CrowdStreet fund, a deal which provides you access to a managed portfolio of diverse marketplace projects operating much in the same way a mutual fund would. 

Minimum investment amounts differ depending on offering. The typical commercial real estate deal will run an investor around $25,000, though upon review it is possible to find a commercial real estate asset that has a minimum investment amount as low as $10,000.

Deciding if CrowdStreet is Right for You

There’s plenty to like about CrowdStreet as an investment platform. It’s especially ideal for deep-pocketed investors, as evidenced by its status as an accredited investor-only access. Its high minimum investment amounts reinforce that, making CrowdStreet firmly out of range for anyone who isn’t already comfortable enough to risk that kind of money on investing. As you should never invest more money than you’re comfortable losing, this isn’t such a terrible thing - the last thing you want is a non-accredited investor going in too deep and losing their shirt.

The fact that CrowdStreet makes real estate investing more accessible, even if it’s just to accredited investors, is a good thing. It’s a long-established fact that commercial real estate, whether it’s an office building that you’re managing or a single-family dwelling that’s operating as an investment property, is a smart way to diversify your portfolio. The best way to invest in commercial real estate is arguably through a publicly traded REIT, and a number of these REITs are often much more accessible than the projects that CrowdStreet provides for its investors. 

Publicly-traded REITs are also often considered a safer type of asset, as these funds are much more liquid. It’s an easier process to extricate yourself from a REIT to access your returns, and a REIT mutual fund is excellent for diversification as well. That being said, these funds aren’t always ideal; they’re tied to the stock market, often moving in tandem. This is where CrowdStreet comes in, as a preferred equity deal that allows you to invest in properties directly often offers better diversification. A REIT can drop in price, but the value of a real estate asset could hold fast in comparison. In some instances their value could even rise. That’s a pretty good deal in comparison.

If you’re looking for a well diversified approach to target your investment opportunities, CrowdStreet may be an excellent alternative to a publicly-traded REIT. If you have the time to properly vet each asset during the process, if you can sit on your deal for years for long-term investing, and if you’ve met the requirements of being an accredited investor, then then CrowdStreet can offer more than one excellent deal when it comes to adding commercial real estate your investment portfolio.