CrowdStreet Review: Transforming commercial real estate investing
CrowdStreet is a software services company that came into existence after the 2012 Jobs Act created real estate crowdfunding by allowing commercial real estate firms to directly and publicly solicit investments from accredited investors. CrowdStreet is disrupting the commercial real estate industry by enabling innovative real estate operators and developers to efficiently engage in online capital formation, communicate with investors, distribute investment documents and centralize ongoing investor relations.
CrowdStreet also provides a marketplace for sponsors to access a national audience of accredited investors with their offerings. CrowdStreet sponsors directly is another approach available for the sponsors to gather funds for their projects. In this approach, the enterprise-level sponsors are allowed to use the name of their enterprise along with the same technology that CrowdStreet is using to present their offerings to their own investors, under their own brand.
All the solutions provided by CrowdStreet are created with the purpose of providing commercial real estate investment opportunities by connecting accredited investors, family offices, and institutions with real estate sponsors for direct co-investing.
CrowdStreet's platform is very easy to use and best investments can be found very easily. You by browsing through available investment opportunities on their platform and reviewing the ones that match your investment objectives. After reviewing the investment, you have to submit an offer which is safely driven by CrowdStreet's platform from your desktop or mobile. If your offer is accepted you can then proceed to invest in the offering and at the closing of funding, you will be presented with secure access codes for your own personal investment portal where you will be able to monitor the performance of your investment for the life of the investment period. You can also monitor the investment performance during the period of investment. Use the portal to receive project updates, track investment performance vs targets and download project documents. When your investments exit, you will receive any additional investor returns as specified by your investor agreement.
CrowdsStreet Investment Options and Special Features
CrowdStreet does not charge any fees for participating investors and all the charges incurred during a complete transaction of an investment is being paid by the sponsors. This way CrowdStreet creates a balanced platform for commercial real estate investment and for raising money through investments. Unlike other real estate investment platforms, CrowdStreet does not include single family fix-and-flips with commercial real estate offerings, CrowdStreet provides a platform with 100% authentic real estate properties for investments. This is perfectly reflected in the returns and investments CrowdStreet is able to generate.
CrowdStreet provides exclusive access to the commercial real estate deals that are normally not available for or not in knowledge of the most investors. This exclusivity in the deals is clearly supported by the numbers of deals that had been made available on their platform till date.
CrowdStreet's deals are done with complete transparency, most of the real estate crowdfunding platform follow this transparency methodology in their online marketplace. The investors are provided with the complete details and paperwork for the real estate offered through the investment. This allows the investors to perform their own due diligence thus creating a more trustworthy environment for investors and sponsors to come together. CrowdStreet depicts all the information about the investment opportunities in a manner which makes it easier to compare with other investment opportunities.
CrowdStreet longer terms of investments as they are providing investment opportunities in commercial real estate properties. Currently, the terms are ranging in between 3 years to 10 years. CrowdStreet takes their responsibility of being a discerning eye for the investments very seriously. The CrowdStreet teams review approximately 400 investments offerings every month. Only 3% of those offering are able to prove their mettle on the standards set by CrowdStreet. Each sponsor's investment offering is subjected to a 26-step objective review process carried out by a team of experienced investors, to ensure both the sponsor and the offering meet requirements to clear the screening. This screening process is carried out in different steps clearing out the unwanted offerings in each one. It all begins with vetting the sponsors by the investment teams, which results in filtering out 75% of the total lot. In the next step, the deal being offered is scanned by the market expert and 60% of the lot is shown the gate in this round. The third round brings up the review of offering specifics like the risk involved and return expected. In the last and final round. The approved offering is made available to the investors for investing in them.
CrowdStreet marketplace is performing pretty well since its opening. Credits can be given to the investment screening process they follow. More than 50% of their realized investment offerings have outperformed the return expected initially from them. More than 90% of their closed and operating investments are performing better or as expected from them initially.
CrowdStreet Past Investment Opportunities
Crowdstreet have helped investors invest more than $4.5 Billion CRE projects more than $155 million equity funding, more than 140 funded CRE offerings an 100% commercial real estate focus.
Requirements to Sign up For CrowdStreet
- You start by setting up your account providing your email and setting up the password.
- In the next step provide your address and accept their agreement along with describing your role on their platform.
- In the next step customize the type of property you want to invest in. The filters available are property type, regional preference, market size, investment vehicle, investment experience, investment objective, investment holding period, risk tolerance and expected investment per opportunity.
- You are now good to go and Invest in CrowdStreet's marketplace.