Product Overview of CrowdStreet
What is CrowdStreet?
CrowdStreet is a commercial real estate investing platform that enables accredited investors to access and invest in a diverse range of commercial and multifamily real estate deals across the United States. Founded in 2014 by Tore Steen and Darren Powderly, the platform aims to provide individual investors with the opportunity to build diversified real estate portfolios outside of traditional public equities.
Key Features and Functionality
Investment Options
CrowdStreet offers several investment options to cater to different investor preferences and risk tolerances:
- Individual Deals: Investors can choose to invest in specific properties, such as multifamily, retail, office, industrial, land, and other commercial real estate projects. Each deal is thoroughly vetted, and detailed information, including business plans, financial plans, and return structures, is provided to help investors make informed decisions.
- Real Estate Funds and Vehicles: CrowdStreet also offers diversified funds and real estate investment trusts (REITs) that combine multiple properties into a single investment. These funds can be managed by CrowdStreet Advisors or external managers, allowing investors to spread their investments across various regions and asset classes.
Vetting and Due Diligence
CrowdStreet is highly selective in the deals it approves for the platform. Only about 5% of the deals reviewed are accepted, ensuring that investors have access to high-quality, pre-vetted investment opportunities. The platform conducts thorough background checks on sponsors, reviews their business plans, and ensures that all fees are clearly stated.
User Experience and Tools
The platform is designed to be user-friendly, with an intuitive website that allows investors to easily browse and filter investment opportunities based on various criteria such as investment strategy, geographic region, and risk level. Investors can filter deals by categories like Core, Core Plus, Value Add, and Opportunistic, which reflect different risk profiles.
Customized Portfolios
For investors seeking a more tailored approach, CrowdStreet Advisors can help create customized real estate portfolios. This service, however, typically requires a larger minimum investment and involves paying fees to CrowdStreet Advisors.
Investor Requirements
To invest on CrowdStreet, individuals must be accredited investors with a primary address in the United States. The minimum investment typically starts at $25,000, though this can vary depending on the specific deal or fund.
Educational Resources
The platform provides excellent educational materials and resources to help investors understand the real estate market and make informed investment decisions. This includes detailed information on each deal, live webinars, and market insights.
Additional Benefits
- Geographic Diversification: Investors can invest in real estate projects across various regions in the United States, allowing for geographic diversification of their portfolios.
- Transparency and Trust: CrowdStreet ensures transparency by providing clear information on fees, risks, and return structures. The platform’s rigorous vetting process helps build trust between investors and sponsors.
In summary, CrowdStreet is a robust platform that offers accredited investors a comprehensive and user-friendly way to invest in commercial real estate, with a focus on diversification, transparency, and thorough due diligence.