This commercial real estate platform is only open to accredited investors with at least $25,000.
CrowdStreet offers commercial real estate investment opportunities to investors seeking individual deals, funds or hands-off portfolio management. But you need at least $25,000 to get started and must lock in your investment for three years or more.
- Consider CrowdStreet if you’re an accredited investor seeking commercial real estate investments.
- Look elsewhere if you’re new to real estate investing or prefer a short-term investment strategy.
What investment options are there on CrowdStreet?
CrowdStreet offers three ways to invest in commercial real estate online.
Investors can pick and choose investments from the CrowdStreet marketplace. With no intermediaries or middlemen, investors are in direct communication with the property sponsor. Filter property by type, equity multiple, distribution schedule, minimum hold period, minimum investment and more.
A quick breakdown of the process:
- Create an account. It’s free to create an account and you can complete the application process on CrowdStreet’s website.
- Browse the marketplace. Explore the active deals on the CrowdStreet Marketplace to find an investment property that matches your risk tolerance and investment goals.
- Submit offer. Select the investment amount you’d like to put up and submit your offer to the property sponsor.
- Fund your offer. If your offer is accepted, fund your offer with a wire transfer, ACH transfer or check.
- Monitor investments. Track your investments from your CrowdStreet account.
Funds and vehicles
Diversify your portfolio without tracking and managing multiple individual investments with real estate funds and vehicles. Fund minimums start at $25,000 and are hand-picked by its investment professionals and contain a basket of commercial real estate investments.
Through a single investment, you can expand your portfolio and support multiple projects. Reporting, documentation and tax information is delivered regularly to your account so you can track the performance of the fund.
Prefer hands-off investing? For a fee, CrowdStreet connects you with its team of financial professionals to build your investment strategy and portfolio for you. With this service, property investments are made on your behalf by your CrowdStreet adviser based on your risk tolerance and investment goals. To participate, investors need a starting account balance of at least $250,000.
Who is CrowdStreet best for?
CrowdStreet’s online real estate investment platform is a good fit for:
- Accredited investors. While CrowdStreet states that it offers the occasional investment to non-accredited investors, a majority of properties and funds available are limited to accredited investors.
- Real-estate savvy investors. While the platform offers detailed information on individual deals, investors should still be prepared to conduct research on available properties.
- Hands-off investors. Passive investors looking to expand their portfolio into commercial real estate may be interested in the platform’s portfolio management service.
Since most CrowdStreet investments require a minimum of $25,000 or more and are only open to accredited investors, the platform’s target market consists of experienced investors who are comfortable conducting their own market research. The platform states that it offers occasional investment opportunities to non-accredited investors, but as of May 2020, all of the deals on the platform were open to accredited investors only.
CrowdStreet vets and filters property sponsors based on its own internal criteria, but this process doesn’t constitute a guaranteed profit. The platform also doesn’t make any investment recommendations unless you apply for its portfolio management service. Passive investors seeking commercial real estate investments may benefit from CrowdStreet’s advisory services, but need an account balance of at least $250,000 to qualify.
CrowdStreet property investments are highly illiquid, with most offerings requiring a minimum investment period of at least three years. Investors need to be willing to lock in their investment for years to come. Understanding what you’re buying into and how your money is used is crucial.
Pricing and fees
Most of the property on CrowdStreet’s online marketplace is limited to investors that meet the U.S. Securities and Exchange Commission’s financial criteria for accredited investors. To be an accredited investor, you must meet one of the following:
- You earned over $200,000 in each of the last two years and expect the same for this year.
- You and your spouse earned over $300,000 in each of the last two years and expect the same for this year.
- You have a net worth of at least $1 million, alone or together with your spouse, excluding the value of your primary residence.
Platform minimums and advisory fees are as follows:
|Individual deal investment minimum||$25,000–$100,000|
|Funds and vehicles investment minimum||$25,000–$100,000|
|Funds and vehicles management fee||0.75%–5%|
|Portfolio management investment minimum||$250,000|
|Portfolio management account fees||Varies by portfolio|
CrowdStreet’s $25,000 investment minimum is fairly steep. A number of its competitors, including Fundrise, DiversyFund and PeerStreet, offer investment minimums in the $500 to $1,000 range.
Pros and cons
- No middlemen. CrowdStreet offers investors direct access to property sponsors.
- Transparency. Investors can peruse investment property specs and developer track records before they invest.
- Screening process. Before a developer can post on the CrowdStreet marketplace, they are evaluated and ranked based on the platform’s internal criteria.
- High minimums. You need at least $25,000 to invest in CrowdStreet funds and at least $250,000 to open a custom-built portfolio.
- Limited to accredited investors. To invest in the CrowdStreet Marketplace, you must be an accredited investor.
Crowdstreet reviews and complaints
CrowdStreet reviews are limited. It has its own Better Business Bureau (BBB) page, but isn’t an accredited BBB business. There’s only on customer review.
On Trustpilot, CrowdStreet earns a TrustScore of 3.7 out of 5 based on 91 reviews, as of August 2021. Investors praise the platform’s ease of use, variety of investment offerings and sponsor vetting process. Far and away the most common complaint was about CrowdStreet’s customer service. Investors report that the support team is difficult to reach and slow to respond.
There are no complaints about the platform on the Consumer Financial Protection Bureau.
|BBB customer rating||1/5 based on 1 customer review|
|Trustpilot score||3.7/5 out of 91 customer reviews|
|Google Play app||N/A|
|Apple app store||3.7/5 stars based on 3 reviews|
|Customer reviews verified as of||August 2021|
How do I get started?
Start the signup process from CrowdStreet’s home page:
- Click Create an account.
- Enter your full name and create a password. Review CrowdStreet’s Terms of Service and click Sign up.
Once you’ve created an account, you’ll have access to all of CrowdStreet’s listings. But to make an offer, you’ll need to complete your investor profile.
Enter your personal information, contact information, employment information and details of your investing experience. You’ll also need to disclose your investment objectives and select the types of investment properties you’re interested in.
CrowdStreet customer service
Touch base with the CrowdStreet support team by:
- Phone. Call 888-432-7693 and leave a message to have your call returned within 72 hours.
- Email. Fill out an online form on CrowdStreet’s website to receive an email response from the support team.
Compare with other real estate investing platforms
CrowdStreet could be a viable option for those looking to add commercial real estate to their investment portfolio. But minimums are steep and investors need to be willing to lock in funds for at least three years.
If you don’t think CrowdStreet is the right fit, review your real estate investment options with other providers.