Crowdstreet is a real estate crowdfunding platform that connects accredited investors with high-quality commercial real estate opportunities. In this CrowdStreet review, we will take a closer look at what they do, how they do it, and help determine if it’s right for you.
Overview of Crowdstreet
Crowdstreet is a leading real estate crowdfunding platform that offers investors access to a diverse range of commercial real estate projects. Although with its minimum investment requirement of $25,000 and only being accessible by accredited inventors, Crowdstreet is not the most inclusive real estate crowdfunding platform we’ve come across in the marketplace.
At this point you may be asking yourself, “Can I be an accredited investor?” And the answer is yes if you have a net worth over $1 Million, and annual income above $200,000. ($300,000 for a couple). For the non-accredited investors who don’t qualify, check out our review of Fundrise, RealtyMogul, or Yieldstreet. And for the accredited investor, we will highlight the features that make Crowdstreet a viable partner for acquiring access to private equity real estate deals.
With Crowdstreet, looking for high end commercial real estate deals across the country has never been easier. For starters, Crowdstreet provides deals in practically every sub-asset class within commercial real estate including:
- Medical office
- Office space
- Self Storage
- Senior housing
- Student Housing
- Life Sciences
Crowdstreet offers a user-friendly platform with a range of features and tools to help investors make informed decisions. The platform provides detailed information on each property or portfolio, including property type, location, and projected returns. Investors can also access market research and analysis, as well as educational resources and support from the Crowdstreet team.
Detailed Vetting Process
A curated menu of high end commercial real estate, with all the important information at your fingertips, is an invaluable resource. As you may imagine when it comes to purchasing multi-million dollar physical properties, expert due diligence from a strong team is of paramount importance. And this is where Crowdstreet excels. A perfect partnership for individual investors looking for individual deals within the real estate market, and understand the time that goes into finding such deals.
With an uncompromising commitment to quality. Crowdstreet Capital Markets team searches for well-respected sponsors, bringing their best deals from around the U.S. to the table for their investment team to review. And still only 5 out of every 100 deals makes it to the marketplace for investors to compare and review.
Any deal has to pass through the following 3 rounds of due diligence before it will be considered for the marketplace.
- Sponsor Review – The firm conducts an in-depth background check on potential sponsors, including interviews and reference checks. The sponsor’s track record is also evaluated to confirm their success in executing past deals and their ability to demonstrate stewardship of investor capital. And finally Sponsors are organized into four categories based on their background and experience, allowing investors to get a sense of the firm behind each deal.
- Deal Review – In the second round of review, the team evaluates potential deals by asking four key questions to determine if the project aligns with the sponsor’s background and is a good fit for the marketplace. The team reviews the project overview, pro formas, historical operating statements, rent rolls, market data, and other materials to validate the sponsor’s assumptions and ensure that the project matches investor preferences. The deal is then reviewed by the investment committee, which determines if it is right for the marketplace. The team also collects documentation throughout the project’s lifecycle for quality control and fraud prevention.
- Document Review – In the third round of review, the team evaluates the deal’s legal documents to ensure there are no discrepancies or issues with the numbers and content. The team collects standard third-party reports and deal documents to confirm pro forma assumptions and the feasibility of the business plan. Any issues are raised with the sponsor, who can either adjust the terms or withdraw the deal for consideration. The information is used to create the detail page of any live deal, allowing investors to do their own due diligence before deciding which deals are right for their portfolio.
Commercial Real Estate Custom Portfolio
For accredited investors looking to invest $250,000, CrowdStreet Advisors offers a Private Managed Account service that provides a customized and diversified commercial real estate investing experience. The company uses its proprietary technology to build a tailored investment strategy based on the customer’s financial goals and risk tolerance, and then manages the investment in properties on the CrowdStreet Marketplace on their behalf. This service is paired with a beautiful interface that allows the investor to keep track of their portfolio.
Downsides to CrowdStreet
Before making any investments you should ensure it is aligned with your investment goals and risk profile. This is particularly true if you’re an investor considering Crowdstreet. While the platform gives you access to exclusive commercial real estate deals, the risks inherent in commercial real estate still ring true. Long investing periods, and a lack of liquidity along the way.
CrowdStreet Final Thoughts
If you’re an accredited investor looking for an enjoyable and curated experience browsing for high end, private real estate deals; CrowdStreet could be just what you’re looking for. Why search for your own properties when you can leverage their team of leading experts, looking over hundreds of deals. Click here to start using CrowdStreet today and browse their amazing marketplace of deals to see for yourself.
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