CrowdStreet
Community Rating
Fees: Vary per deal and are paid to the sponsor.
Minimum Investment: Typically $25,000, but varies per investment.
Accredited Investors Only: Yes
For more information, visit CrowdStreet.
Why We Chose It
Sophisticated commercial real estate investors can invest in debt and equity deals facilitated by experienced property professionals. These investments provide detailed commercial real estate investment documentation tailored for expert investors.
Pros & Cons
Direct access to real estate project sponsors
Thorough project screening, which includes assessment of many factors, including economic environment
End-to-end commercial real estate investment platform with a range of experienced managers
Low inventory of commercial projects at present—which might be considered a positive sign of strict screening and oversight
CrowdStreet REIT I (C-REIT) closed to new investors as of Dec. 21, 2023
High investment minimum
Overview
CrowdStreet collaborates with real estate companies to co-manage and market various crowdfunded deals. Their investment philosophy emphasizes principal protection, opportunities in lending to capture high current market interest rates, conservative property valuations, and identifying underpriced commercial real estate opportunities.
Sophisticated real estate investors can explore these offerings through project videos and detailed documentation provided by CrowdStreet. The platform rigorously vets potential real estate projects, ensuring only those that meet strict criteria are included. Since April 15, 2024, investors have collectively invested over $4.3 billion across 790 projects through CrowdStreet.
In response to current economic conditions, CrowdStreet is exercising heightened selectivity, resulting in fewer available offers on the platform. Currently, investors have access to only two opportunities for their portfolios. However, the company anticipates a robust pipeline of investment opportunities throughout 2024.
All project and REIT information is available online, although users must navigate several pages to get comprehensive details on each offer. The description pages of individual offers are dense, which is suitable for those seeking in-depth particulars of the projects. Investors should take note of the lock-up period for REIT investments. The REITs are eligible for share repurchase after 12 months, but investors will only receive the total redemption value if the fund is held for a minimum of three years.
Founded in 2012, RealtyMogul is headquartered in Los Angeles, California, and serves over 280,000 members.
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