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CrowdStreet is a real estate crowdfunding platform that offers well curated investment offerings with a low minimum buy-in.
Real estate investing can be overwhelming and expensive. Many investors are looking for a simplified option with less money down — this is where CrowdStreet comes in.
With nearly 700 deals launched and $3.7 billion capital raised in the last five years, CrowdStreet is a booming marketplace for accredited investors to get involved in real estate investing.
This CrowdStreet review will break down how the platform works, which investors will get the most use out of it, what types of investments CrowdStreet offers and more.
Keep reading to determine if this ever-growing platform is the best choice for you.
What is CrowdStreet?
CrowdStreet is an online marketplace that helps established real estate investors expand their investment portfolios.
You don’t need to invest millions to get into commercial real estate investing — CrowdStreet utilizes crowdfunding to let people buy equity in large-scale deals.
To do this, CrowdStreet provides commercial real estate investment opportunities to accredited investors. The company has grown quickly, and so has its reputation in the investing world.
How Does CrowdStreet Work?
Many people believe that you need to be a millionaire or have preexisting connections to get involved in the commercial real estate world, but CrowdStreet is looking to change the narrative.
The company provides multiple ways to involve potential investors. CrowdStreet’s platform is designed for accredited investors, so non-accredited investors cannot invest at this time.
But what exactly is an accredited investor? To qualify as an accredited investor, you must have the following:
- Earned at least $200,000 in the current year and prior two years as an individual ($300,000 for couples); or
- A net worth of at least $1 million.
CrowdStreet investors are able to buy a portion of interest in a real estate project or property, just like how you can buy shares in a company.
Raised capital goes to the real estate developer to improve the property, which in turn increases the return on investment for you.
When browsing through the CrowdStreet Marketplace, keep an eye out for the internal rate of return to get a feel for what you can expect to get back.
To figure out what CrowdStreet’s cut of the money is going to be, look for the “Distribution Strategy” tab on the marketplace listing.
This will break down how much money goes to the investors and promoters and when.
There is also a “Financials” tab that will break down what the annual return might look like on a hypothetical investment.
All CrowdStreet deals go through an extensive review process to ensure there are no hidden management fees and the project sponsors and providers are legitimate.
You’re welcome to do your due diligence on deals, but you can rest assured that CrowdStreet does a thorough job.
Suppose you can’t find a residential or commercial real estate deal that piques your interest. In that case, CrowdStreet offers privately managed account services with a team that’s ready to help build you a custom portfolio.
CrowdStreet Investment Options
CrowdStreet provides three different investment options: diversified funds, individual deals and tailored portfolios.
This CrowdStreet review will break down the options so that you can figure out which works best for you.
Funds are a great tool to build your investment portfolio quickly. CrowdStreet has an in-house team of real estate professionals working on building and managing their funds.
CrowdStreet funds focus on various themes, sponsors, regions and sectors. The platform also offers single-sponsor funds that are led by one real estate firm and are more specifically focused on that firm.
Fund investments are an excellent option for people looking to spend less than the typical $25,000 minimum investment for single-property deals.
They also allow investors to spread their money across multiple real estate projects.
Real estate investment trusts (REITs) are companies that own or finance real estate that produces income. They provide mutual funds and other investment opportunities to large-scale investors, such as Wall Street and hedge funds, but also to smaller individual investors.
Anyone can invest in a REIT by buying company stock, mutual funds or exchange-traded funds. They typically have consistently high returns and are relatively reliable investments.
The C-REIT is CrowdStreet’s take on the REIT. It’s a private fund managed by a team of experienced portfolio managers, and the company plans to release a new C-REIT every year.
- Type of investments: Equity
- Investment minimum: $25,000
- Target locations: Secondary metro markets with strong market fundamentals
- Best for: Investors looking for some security and a support team
NEMI Fund V
The New Era Medical Investment (NEMI) Fund allows CrowdStreet users to invest in medical facilities in Texas and across the U.S.
It targets preexisting and new, upcoming medical facilities, such as medical office buildings, surgery centers and in-patient rehabilitation facilities.
- Type of investments: Value-add, opportunistic and growth
- Investment minimum: $25,000
- Target location: Asset class
- Best for: Investors looking to get into the medical world
RD Real Estate Debt Fund II
Real estate debt funds help provide short-term capital for projects that need it, especially when they can’t get the funds from the usual lenders.
They became popular after the 2008 recession. According to Alpha Investing, “Investors in these funds receive periodic payments for the interest charged against loaned capital and security charged against property assets, which takes the form of a mortgage.”
CrowdStreet’s RD Real Estate Debt Fund II has already invested more than $160 million across over 200 projects.
- Type of investments: Pooled private equity
- Investment minimum: $25,000
- Target locations: High-yield, fixed-rate opportunities
- Best for: Investors looking for lower risk with consistent returns
Griffin Partners Income and Value Fund
This global equity fund consists of five seeded assets. It allows investors to put their money into industrial, office and data center properties in 10 high-growth markets across the United States.
The fund focuses on high-quality businesses that are currently undervalued but are projected to be successful and grow well.
As the businesses flourish, so will your return on investment. The team behind the Griffin Value Fund has put a large percentage of its own money into the fund, so they have a hat in the ring and are even more determined to succeed.
“If you win, we win,” the team said. “If you lose, we lose more.”
Since the fund began in 2011, it has achieved an average return of 16 percent on equity investments.
- Type of investments: Commercial
- Investment minimum: $25,000
- Target locations: Undervalued high-growth markets
- Best for: Investors looking to spread their money across properties
As a CrowdStreet investor, you are completely in control of your portfolio. Individual deals allow you to invest directly into a specific project that you’re passionate about.
With low investment minimums, you can join other investors to increase the equity stack in a deal and send capital directly to the project’s sponsor.
It’s easy to find individual deals on the CrowdStreet marketplace. You can tailor your search by property type, investment profile, location, asset class and more — just look for projects that interest you and submit your proposal.
While these individual deals are more hands-on opportunities for investors, CrowdStreet also has an investment team that will help you optimize your deals.
You can always monitor your investments and communicate with real estate sponsors through your Portfolio Center. Individual deals are a great choice for investors who want to be able to control exactly where their money goes.
You can invest in specific properties and have a good feel for what it is your money is going toward. If you’re passionate about a certain project or property, or if you simply have less money available to invest, individual deals are a great choice.
CrowdStreet offers a Private Managed Account service, which matches investors with a team of expert investment advisors to hand-craft the optimal portfolio. These tailored portfolios are custom-built for individual investors based on their goals and experience.
If you choose to pursue a tailored portfolio, you’ll be matched with a team of CrowdStreet advisors and will have one dedicated representative as your main point of contact for any questions or concerns.
You can track your portfolio through CrowdStreet’s Portfolio Center. There is a minimum account balance of $250,000 for tailored portfolios, and account feeds vary depending on the size of the investment.
While this option comes at a much heftier price, it also allows investors to be more passive and trust the experts when it comes to making many of the day-to-day decisions for their portfolio.
If you’re looking for a more hands-off option, this is a great choice for you.
CrowdStreet Fees & Investment Minimum
|Management Fee||0.50% to 2.5% per year|
Who Should Use CrowdStreet?
CrowdStreet is best for accredited investors who are looking to diversify their real estate investing portfolio.
There are opportunities for various investor styles, as you can choose how active or passive you want to be with your portfolio.
One of the most significant benefits of CrowdStreet is that it offers many investment opportunities that would typically only be available to larger-scale investors and public entities.
With this platform, you can pay a more reasonable minimum to get in on more significant deals. There are no fees for investors on CrowdStreet, so it’s relatively low risk to try it out.
The platform also offers a variety of educational resources and expert advice to help you learn more about maximizing your investments.
Overall, most people, whether beginners or experts, should be able to use CrowdStreet. The platform offers more complex options for those who know what they’re doing.
On the flip side, it also provides simple steps and guidance for those who may be newer to the game. Beginner to intermediate investors may prefer it over experts.
While experts can definitely make use of the platform, there are other options that are more diverse and, therefore, more suitable to those interested in a challenge.
How Does CrowdStreet Compare?
0.25% to 2.50%
.85% to 1%
1% to 1.25%
Getting Started with CrowdStreet
- Visit CrowdStreet.com, and click “Sign up today.” Create an account (you can link your Google or LinkedIn accounts, or you can create a profile manually).
- Provide any necessary documentation to verify you are an accredited investor.
- As a new investor, you’ll need to participate in CrowdStreet’s 50-minute new investor orientation, which helps explain how the platform works and how you can start building your portfolio.
- Before you can submit an offer, you’ll need to create an investing account (individual, joint, IRA, LLC, etc.).
- Once your investing account is ready to go, you can browse the CrowdStreet marketplace to find potential deals that pique your interest.
- Submit an offer. You can sign all of the required documents online and pay via wire, ACH or check.
- Once your offer is accepted, you can manage your investments on your dashboard.
CrowdStreet is an unbelievable platform providing me with access to unique and interesting deals I couldn’t otherwise get access to. I have invested in numerous CrowdStreet deals over the last 5+ years. The website is incredibly easy to use and the customer service is exceptional. I chose to write a review and share my experience in part because of the incredibly positive experience I have had with the team.Scott W. Verified Google User
Great selection of vetted deals and sponsors to diversify your portfolio. Realize the income and tax benefits of owning real estate without the hassle of owning and managing properties. I highly recommend CrowdStreet!Adrian C. Verified Trustpilot User
Is CrowdStreet a Good Investment?
In short, yes. CrowdStreet is a great real estate investing platform. Financial bloggers and reviewers all over the web rave about the platform’s ease of use and wide range of investment opportunities.
Whether you’re looking to invest in multifamily, retail, office, industrial, primary residence, real estate funds or even just large property management opportunities, CrowdStreet has something for just about everyone.
CrowdStreet offers lower minimum investments than many other real estate investing platforms, which makes its pricing more accessible to many new investors.
In addition, you don’t need to have an extensive track record in the market — you just need to be an accredited investor. Non-accredited investors cannot currently invest on CrowdStreet.
If you’re interested in portfolio diversification, sign up for CrowdStreet today at CrowdStreet.com. It’s free to do so, and there are no fees to get started — just a simple vetting process to determine whether you’re accredited or not.
Now that we know quite a bit about CrowdStreet, let’s take a look at some common questions.
Is CrowdStreet legit?
Yes! CrowdStreet is a legitimate personal finance platform that provides high-quality real estate offerings to accredited investors.
Do people make money with CrowdStreet?
Yes! The average internal rate of return on CrowdStreet’s 147 fully realized deals is 18.7 percent.
Can you withdraw money from CrowdStreet?
This process is a little complicated as it can vary depending on the investment.
Some offers already have a cash flow in place and can begin paying their investors soon after closing, while others need to use every penny toward the project for a while before having enough cash to pay out investors.
Either way, the distributions are typically paid out quarterly, although that can also vary.
Is CrowdStreet only for accredited investors?
Yes. CrowdStreet primarily focuses on accredited investors, and those profiles will have the widest variety of investment offerings available to them.
CrowdStreet offers access to transparent, vetted commercial real estate investment opportunities (and funds) throughout the entire U.S.
Product Brand: CrowdStreet