A few decades ago, becoming a real estate investor meant finding a broker to evaluate your financial goals and facilitate your investment process. Today, crowdfunding platforms like Crowdstreet make investing in real estate easier.
Just like other investment platforms, Crowdstreet is dynamic and ever-evolving, making you curious to know if it’s as good as it seems or if it’s legit or a scam.
Regardless of whatever questions you have about Crowdstreet, this article will address them. We have compiled various CrowdStreet reviews. By reading through other people’s experiences, you will be able to tell if the platform is worth it.
Table of contents
What is CrowdStreet?
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- crowdstreet.com
CrowdStreet was founded in 2013. Today, it is one of the higher-volume marketplaces for standalone crowdfunded real estate deals and a popular choice for new investors.
How does CrowdStreet Investment work?
CrowdStreet is free to join. It doesn’t require membership or startup fees. Anyone can sign up and browse the Marketplace for free, but only accredited investors can invest. To be an accredited investor, you’ll need to:
- Create an account.
- Complete your investor profile.
- Browse deals and invest.
Once you’ve verified with CrowdStreet that you’re an accredited investor, it’s just a matter of picking an investment and then funding your transaction.
As an investor, you can easily find relevant information about the real estate offerings in its marketplace. The dashboard is a powerful tool to keep you informed about every real estate deal you invest in.
Different ways to invest in CrowdStreet
CrowdStreet has three major investing choices.
Funds Investment: The minimum investment in the Blended Portfolio is $25,000, but incremental deposits of $1,000 can be made after the initial $25,000.
Direct Investment: In this type of investment, you’ll interact directly with property sponsors and choose as many (or as few) offerings as you please.
Manage Investment: You need at least $250,000 in capital to get started with managed investing options and the management fee is 2% to 2.5% of assets in the first year (0.25% in subsequent years).
Learn How to Invest: A Beginner’s Guide to Investing in the Stock Market
Is CrowdStreet Legit Or Scam?
We have compiled a couple of CrowdStreet reviews. Each review reflects the personal opinions of the poster about the platform. They contain all the essential information in one place and provide answers to various questions.
#11.
So far, I have invested in 7 deals totalling $250K.I love the site, and the service has been excellent. Jerry Delgado
#10.
I have invested in about 10 deals with Crowdstreet over the past year. Since it’s been a short period of time, I can’t really give much insight into their performance. The best aspect of CS is the scope of deals and relative ease in performing your own due diligence. Here are the problems with CS: There customer service department is horrendous. They rarely ever return a call. Completing a deal is the equivalent of an archeological dig. You have to trade countless emails, often needless ones, with poorly trained service reps. You often get emails that are irrelevant, terribly late, or don’t answer your question. They seem to care very little about improving the customer relationship aspect of the business. Fred
#9.
I have made two investments through Crowdstreet, both with the same sponsor. They have a very good array of investments but so far Crowdstreet’s and the sponsor’s communications have been seriously deficient. My calls to Crowdstreet have gone unanswered (left voicemails and not returned). My queries via their site also have been ignored. As to the sponsor, one investment has had a rocky start. They failed to respond to questions and then got defensive when they finally responded and also ignored the crux of the questions. My comments to them about their communications were answered with irrelevant information. These are the first and last investments I will make through Crowdstreet unless and until there is some acknowledgment of the problem and a plan to fix it. Doug Daniels
#8.
Reasonable to use but even if you express high interest in an offering before its made available, the best deals close before any regular people can get access to them. Brian Hughes
#7.
The platform is very easy to use. I would like access to the status of closed deals that compare actual results to their original projections. Joe Scarfuto
#6.
Very easy to do business with. Competent and seem to thoroughly vet all offers. Any questions I had were answered by a return phone call on the same day. Michael Wagner
#5.
Good choice of investments with simplified detail information. Lately, it is difficult to reach someone on the phone when you are filling out documents if there are questions and information need about the sponsor. Would like to have a chart of the performance of all investment on their website. They had one 2 yrs ago.
I have used them for the last 2 yrs and will continue to use them. vjkarra
#4.
I have been investing with Crowdstreet since early 2018. They are very professional, and seasoned real estate professionals. I started to receive distributions on time per proforma. The number of investors has grown very quickly and frequently, you need to act within 24-48 hours in order to participate in their offerings. I intend to continue using their platform. I have recommended them to associates and do so without hesitation. HowardMD
#3.
I have been investing through their platform for the last two years and it has been a great experience. The team is responsive, accommodating, and seems to deeply care about the quality of projects that come on the platform. On the neutral side, I have not seen an exit on my investments – so cannot comment on how the projected numbers line up with the actual returns. Rahul Deshmukh
#2.
As a sponsor, we are using their SAS platform and we plan on using their marketplace as well. The team at CS is awesome to work with, and they seem to have a good vetting process for sponsors. RJ Johnson
#1.
I have done 3 seperate transactions on the site. Great experinience with all. Brian Vierra
Conclusion
Crowdstreet is one of the largest crowdfunding platforms with a substantial and growing investment volume and only those who take the time to understand the basic principles the platform stands to gain significantly.
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