Founded in 2013, CrowdStreet is one of the single-transaction mass real estate crowdfunding platforms. It has a highly integrated investment management platform that is very investor and project originator friendly. Over 250 large commercial real estate developers and operators have used CrowdStreet technology to raise capital online and manage their investors and investments. CrowdStreet reports that over 100,000 users have registered to use its platform and have direct access to a variety of commercial real estate assets of an institutional nature. CrowdStreet also provides real estate investors with excellent educational content. From investment essays to educational roundtables, this site is a great place to learn how to become a better real estate investor.
By 2021, CrowdStreet has brought 90 deals to its investor community, including new asset types such as data centres, charter schools, construction to rental projects, and micro multifamily developments. The platform offers a wide range of opportunities for investors. In addition to single-asset consortia, the platform has launched several managed funds, including its first e-commerce and opportunity funds. Considering the vast array of opportunities offered by the platform, real estate investors will undoubtedly find something to suit their needs.
CrowdStreet is one of the largest and most experienced commercial real estate crowdfunding platforms. with an excellent deal flow and a track record of impressive early returns, CrowdStreet can offer recognised investors a variety of deals that can only be done privately. CrowdStreet has many advantages and limitations compared to other platforms. The longevity of the company and the success of its sponsors: more than 450 transactions have been completed since launch, including more than 40 fully realised deals. CrowdStreet is completely transparent about the outcome of all transactions.
In-depth and very thorough pre-screening: sponsors are examined at various levels, including their ability to provide a high level of service to investors and their responsiveness.Excellent deal flow: CrowdStreet brought 90 deals to the platform in 2020, across a wide range of asset classes and project types. As it continues to grow in size, sponsors are increasing the configuration of the platform so that more investors can participate in each transaction.
Transparency of sponsors and deals: CrowdStreet provides extensive documentation and due diligence research for each deal, as well as a significant track record for each sponsor.Direct investment: you invest directly with the deal sponsor.Powerful and user-friendly platform: superb technology and intelligent programming are definitely CrowdStreet’s strong points.
IRA accessibility: CrowdStreet makes investing in Self-Directed IRAs (SDIRAs) easy by integrating its platform with some of the largest SDIRA custodians. Excellent investor education resource: CrowdStreet publishes investment papers to help guide investors through their current market views. It also publishes reports on the top 20 real estate investment markets, as well as other useful resources such as blog posts and webinars.
The CrowdStreet marketplace is one of the largest in terms of transaction volume, offering more than 467 commercial real estate products since its launch in 2014. In 2020 alone, CrowdStreet initiated 90 deals on its platform, raising $640 million from investors. The majority of these transactions took place over a predetermined holding period. Of the 44 that have been fully realised, most have exceeded the returns expected at initial launch, with only three posting losses. As at February 2021, the average realised deal generated an internal rate of return (IRR) of 17.7% (excluding fees) and an equity multiple of 1.37x.
Ways to invest in crowdfunding On this platform, you have three investment options.
01. Direct investment in a large number of individual deals with a variety of facilitators available. The typical target investor has an IRR of between 12% and 21% over a period of two to five years. The minimum investment amount varies from deal to deal and is typically US$25,000.
02. Invest in a diversified fund. In addition to single-asset projects, sponsors are bringing their CRE funds to the crowdfunding market. They may target specific geographic locations or asset types. from time to time, CrowdStreet will set up, launch and manage its own funds, each with its own unique business plan. Previously they have created funds focused on areas of opportunity, e-commerce related real estate, distressed real estate, etc.
03. Invest through crowdfunding advisory services. CrowdStreet offers private account management services and diversified real estate assets selected by professional managers. The minimum balance is US$250,000.
CrowdStreet’s diversified portfolio investment options may appeal to investors who wish to limit how much money can be pooled in one asset, or those who simply do not have the time or expertise to thoroughly review each transaction.
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