What is crowdstreet.com? How does it work? Is it one you can turn to as an investor? Does it serve the needs of a long-term investor or a short-term investor? Must you be an accredited investor to get started with what it has to offer? If you’ve been asking yourself these questions, then you’re in the right place because I’ll cover all of them and more in today’s review. Let’s see what this company has in store for us:
Name of the company: CrowdStreet
Official Website URL: https://www.crowdstreet .com/
Overall Rating: (3.7 / 5)
Table of Contents
- What is peerstreet.com?
- How does PeerStreet Work?
- What are you investing in? (as the investor)
- Which are some of the main features of PeerStreet?
- Which types of deals are offered on this platform?
- Is PeerStreet Legit or is It A Scam?
- Pros and Cons
What is crowdstreet.com?
CrowdStreet is a Portland-based company that was founded in 2014 to connect accredited investors with well-screened real-estate investment opportunities. It can be viewed as an intermediary, not as a special purpose vehicle (SPV). This essentially means that while this company does take a small cut, its main objective is to empower people to connect with viable sponsors.
SPVs have from time to time had communication issues as well as delayed funding, which is why some investors opt to utilize the offers presented by companies such as CrowdStreet. With CrowdStreet, one is given the freedom to manage their relationship with their project sponsor.
As much as Crowdstreets offers some of the largest investment offerings in this industry, it doesn’t completely do away with the quality. In fact, it focuses on the provision of commercial-only opportunities, which lockout investors who’d like to try out residential/fix-and-flip opportunities. It also has a very rigorous vetting process that sees to it that only the very best sponsors get to join the network. Every sponsor has to accept to go through various background checks, reference checks, etc. You’ll be surprised to learn that only 5% of the deals that this company reviews qualify for CrowdStreet.
How does PeerStreet Work?
Getting started with this company should be easy for you as an investor. Here are the three steps that you should follow:
- Create your account
- Complete your investor profile as directed
- Start browsing to get deals you can invest in.
As you create your account, you should be aware of the two main things:
- If you’d like to view the available deals before presenting all your information to them, CrowdStreet allows you to start browsing as soon as you provide your name, email, and password.
- CrowdStreet will ask you a couple of times to confirm whether you’re already an accredited investor or not.
When you start browsing for deals, you’ll easily spot all the information that you’d need to make decisions with regards to the types of deals presented on this platform. You can, for instance, view key deal points, a detailed business plan, capital stack, live webinar invites as well as recordings, all essential documents, the site plan with details about site plan, unit plans and amenities, etc., sponsor information with the track records, etc.
What are you investing in? (as the investor)
As an accredited investor on this platform, you get access to the full offerings presented, which include:
- Single property offerings
- The blended portfolio
Non-accredited investors also access some properties and funds, but these are way fewer than those availed to accredited investors.
Which are some of the main features of CrowdStreet?
If you manage to create an account on CrowdStreet, you’ll be lucky to enjoy the following features:
- Connect directly with various sponsors –which means that you won’t have to deal with investment middlemen who at times bring about insolvency issues/delayed funding.
- Institutional-quality offerings-there are no residential or fix-and-flip opportunities that you can take up, only those of very superior quality.
- Access to the CrowdStreet Marketplace –investors can browse suitable deals within seconds and pick the ones they find most suitable according to their capital size.
- The Blended Fund/ The CrowdStreet Blended Portfolio (CSBP) –this fund comprises 25+ real estate offerings that are all selected from the CrowdStreet Marketplace by their proprietary algorithm. This algorithm factors in a variety of property types, different risk categories, as well as different geographies.
Which types of deals are offered on this platform? (How to invest on CrowdStreet)
Here are the main ways through which you can invest with CrowdStreet:
- Diversified funds and vehicles –this option is awesome for those who’d like to spread their money across different properties. For this option, an investor gets to choose between single-sponsor funds and CrowdStreet funds.
- Individual deals – an investor can also simply decide to pick the properties that they want their money to get allocated to. This is a great opportunity for one to invest in their favorite property.
- Tailored Portfolios –If prefer managed accounts, you can get a tailored portfolio with CrowdStreet, though you’ll need $250,000 to get started.
Is CrowdStreet Legit or is It A Scam?
CrowdStreet is legit, in my opinion. I came across many different reviews while compiling this review, and none of them pointed to CrowdStreet being a scam. Whereas some were not very enthusiastic about what is being offered by CrowdStreet, none of the platforms referred to it as being a scam.
CrowdStreet has an average rating of (3.7/5) stars on Trustpilot, a platform on which the best platform gets a (5/5) star rating. The average rating given so far points to CrowdStreet as being one whose services are average, and one with which some extra work would be needed to see to it that more investors stream towards it. I observed that 42% of the customers who have used this platform think its services are excellent, in comparison to 13% who think the services are bad.
Generally, I’d advise that you do your due diligence with this company to see if what it offers is suitable for you and your investment needs. You can also check out other opportunities that are suitable for investment (for your retirement years) including the one I’ve recommended below:
Pros and Cons
- Lots of unique opportunities
- Sufficient educational materials for the beginners
- Investors can invest through debt or equity offerings
- Real estate happens to be highly illiquid
- Very high minimum investment fees
- If you’re not an accredited investor, then your options on the CrowdStreet marketplace are limited
Do you own or represent CrowdStreet?
If you are a representative or associate of CrowdStreet have found something not to be correct in this review please, feel free to tell us and I will make sure to update the info on this post. The easiest way to do it is in the comment section below or simply by sending us an e-mail to firstname.lastname@example.org.
Final Words and Verdict
Overall Rating: (3.7 / 5)
CrowdStreet presents investors with different opportunities to earn money in the real estate crowdfunding space. Whereas such opportunities are lucrative, they may not be for everyone. As always, I’d advise that you don’t just jump into what CrowdStreet is offering without doing sufficient research on it. If possible, contact the support staff and have them explain what you stand to gain from the various opportunities. Also, you can diversify your entire portfolio, and set aside some money for the opportunity recommended below as well.
Thank you for making it to the end of this review about what crowdstreet.com is about and what it has to offer. Did you find it informative and helpful? Do you still have any questions about it? Let me know about that in the comments section, and don’t forget to share this review with someone who’d benefit from it as well.
I wish you well,
Eric, Investor and Team Member at Gold Retired!