CrowdStreet is a real estate investing platform that gives investors direct access to individual commercial real estate investment opportunities, allowing you to review, compare, and personally choose the deals that meet your own investment criteria. Their managed funds and advisory services give you the same level of access, but they will handle the portfolio, making it even easier for you to invest.
How you make money
As an investor, you will receive a return on your investment when the company distributes money. This will depend on whether you choose an equity, debt or hybrid investment. Typically distributions are made to investors: as a share of profits for equity investors; at an agreed upon interest for debt investors; and/or when the investment property is sold. It's important to note that not all of the offerings are currently cash flowing, and therefore may not pay distributions until later in the hold period, if at all.
How CrowdStreet makes money
There are no investor fees for joining CrowdStreet and accessing the investment opportunities. CrowdStreet charges a 1% management fee for its Blended Portfolio and also charges a 1.75% management fee on the REITs available to non-accredited investors, plus a 1% financing fee.
Is it safe?
CrowdStreet has been around for nearly a decade now, and has raised over $24 million in multiple rounds of funding to date. So far, thousands of investors have invested over $ $2.8 billion in more than 580 projects with Crowdstreet, earning over $417 million in distributions.
As with any investment, investing in real estate presents certain risks and there is no guarantee of future outcomes. The real estate market has economic cycles and it is difficult to know how and when the economy will change. CrowdStreet works to mitigate this risk by only presenting opportunities that have experienced real estate managers in place to manage the assets after the closing.