CrowdStreet Review

Donny Gamble
April 10, 2022
4.0
Personalincome rating

CrowdStreet isn’t for the budget-conscious investor who wants to slowly build up small pieces of a portfolio over time. Instead, you need to have capital to start, and you have to know what you want when you begin.

CrowdStreet logo
on CrowdStreet's website
CrowdStreet
FEES
0.50% to 2.5%
for funds; project fees vary
ACCOUNT Minimum
$25,000
PROMOTION

No promotions at this time

Some of the links in this post are from our partners who compensate us. This may influence some of the products and services we write about and choose to review. However, this does not influence our research process and our opinions are our own. Here is how we make money.

The information provided on this page does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual.

Key Takeaways

  • Fast Growth: Because CrowdStreet curates and contours to the market, the market bends in response. They’ve been on the forefront of high budget crowdfunding and plan to stay there.
  • Navigation: With an easy-to-navigate platform, you don’t have to become a pro on actually buying property on the platform. It’s a simple, intuitive process.
  • Selection: You have plenty of commercial real estate you can invest in, increasing your portfolio diversity.
  • Not Perfect: While they’re good, CrowdStreet’s customer service can be spotty at times. Just be aware of what your investments are and how your portfolio responds.

Pros & Cons

Pros
  • Largest online real estate investing platform
  • No investor fees
  • Access to lots of commercial properties
  • Over $3 billion invested
Cons
  • High account minimum
  • Only for accredited investors

Real estate has so many different subdivisions to it. Condos, homes, apartments, the list goes on and on.  Too many crowdfunding services focus on a mix of real estate holdings, but CrowdStreet is all about commercial real estate.

That’s where the focus is.  But how do they hold up against other services, and do they actually offer the features that a commercial real estate investor needs, or does it fall short?

We want to find out. This is everything that you need to know about CrowdStreet in 2022.

About CrowdStreet

CrowdStreet is an online platform for commercial real estate investing. Users are certified investors with a minimum of $25,000 in the collective pot.

CrowdStreet has funded billions, has an impressive IRR of 18.5%, and over $24B in total market capitalization with over $500M paid in distributions to investors.

Overall, they have become the most successful, most financially phenomenal real estate investing platform for crowdfunding.  CrowdStreet funded over $3B for their platform and has become the largest online private equity real estate investing platform (their own words).

Individual investors made this happen, and CrowdStreet’s continued success comes from offsetting the cost for investors and putting them on the sponsored real estate instead.

Services

  • Personalized Managed Investing: If you have at least $250K in the pot, you can use their Advisory Services Team to help custom tailor an investment portfolio specifically for your needs.
  • REITs: They technically are an REIT, but they operate differently. The goal is that your minimum investment can give you a piece of the pie for around 20-25 properties at the same time, so it operates similarly to an REIT.
  • Individual Investment Choices: Choose to put all your money into one specific business endeavor/real estate project so you control how your money is spent.

Pricing & Fees

  • Investor Fees: These are literally 0%. You don’t pay anything for being an investor, which is why this platform has excelled where others have not.
  • Sponsor Fees: In the event that you wanted to be a sponsor, there is a 1% to 5% fee for the total project.
  • Custom Tailored Portfolios: These have a 2.5% fee rating, but they also come with full service and expert investment advice from a certified professional, so it’s not like the costs are unjustified or will be missed.

Who is CrowdStreet Best For?

CrowdStreet is designed for investors that have capital to move around. Ideally, a CrowdStreet investor will have more than the minimum of $25,000 handy to invest, and won’t need this money for 5+ years (typically, this is money you invest for life if it’s an option).

CrowdStreet is not designed for individuals who will need any of their seed money in the next two to five years. REITs like these are illiquid investments, so it’s nearly impossible to sell and liquidation through the company will cost you a lot of your startup cost (plus it’s a hassle no matter who you go through to do it).

Compare to Other Platforms

Fundrise logo
ANNUAL FEES
.15%
INVESTMENT MINIMUM
$1,000
PROMOTION
Invest and get $10 in shares
Realty Mogul Logo
MANAGEMENT FEES
1% to 1.25%
INVESTMENT MINIMUM
$5,000
PROMOTION
No current promotions
PeerStreet logo
ACCOUNT FEES
0.25% - 1.0%
INVESTMENT MINIMUM
$1,000
PROMOTION
No current promotions

CrowdStreet FAQ's

Is CrowdStreet safe and legit?

CrowdStreet is a safe, legitimate platform that holds some of the highest standards in the investment world, while still being accessible to investors that don’t have six figures to invest.

It’s as safe as any other crowdfunding platform on the market, and has done nothing but prove itself credible since its inception.

Is CrowdStreet good for beginners?

No, CrowdStreet is not good for beginners. If you have $25K to waste, not to invest, then you’re looking for gambling instead of commercial real estate.

If you have the minimum and you want to approach CrowdStreet, that’s because you understand the fundamentals of investing, the terms of real estate investing, and how it works to some extent.

If you’re a beginner, you may want to toy with standard REITs or apps like Fundrise in the meantime until you reach this threshold. You can get in over your head with CrowdStreet if you don’t know what you’re doing.

How does CrowdStreet make money?

CrowdStreet makes most of its money through sponsorship fees. If someone is going to sponsor a real estate project, they are paying anywhere from 1% up to 5% (depending on the value of the property) to CrowdStreet.

It doesn’t sound like much, but since they have $24B in market capitalization, a single percent is nothing to scoff at. On average, they earn around $25M in revenue (not to be confused with profits).

They also make money through their personalized investment portfolio advisory service.

Can you lose money with CrowdStreet?

Yes, you absolutely can lose money with CrowdStreet if you aren’t careful. Commercial real estate investments are typically a lot higher stakes, and are not guaranteed.

No investment opportunities (even the stock exchange) are guaranteed. You can lost money with CrowdStreet if you have absolutely no idea what you’re doing when you get on the platform, so be sure that you understand commercial real estate investment before you sign up.

CrowdStreet

CrowdStreet offers access to transparent, vetted commercial real estate investment opportunities (and funds) throughout the entire U.S.

ratingbox]
Review of: CrowdStreet

Reviewed by:
Rating:
4
On April 10, 2022
Last modified:May 13, 2022

Summary:

CrowdStreet offers access to transparent, vetted commercial real estate investment opportunities (and funds) throughout the entire U.S.

About the author 

Donny Gamble

I’m Donny. I’m a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.

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