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CrowdStreet Review 2022: Features, Pros, Cons, Alternatives and More

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CrowdStreet Review

crowdstreet logo

CrowdStreet is a well-developed platform with an easy-to-use dashboard and a wide range of offerings. With its diversity of investment offerings, easy-to-use interface, and intense vetting process, CrowdStreet can be considered one of the best real estate investment platforms. other things that make CrowdStreet stand out from its competitors include an investor dashboard, highly usable deal pages, and high transparency with frees. CrowdStreet also includes detailed information and research on every deal posted on the platform, which gives you the ability to scout for good deals. CrowdStreet’s major downside is that it requires high start-up fees and is meant for large accredited investors. Unless you’re accredited, you cannot invest with the platform. But if you’re an accredited investor looking to diversify your portfolio, crowdfunding through CrowdStreet is worth it.

Rating

4.5

Legit & Safe

Value for Money

Earning Potential

Customer Support

Pros

  • Direct access to different types of real estate sponsors and investors
  • Offers access to a variety of commercial spaces, including self-storage, multifamily, and data centers
  • Extensive quality educational resources and help center
  • Intuitive and easy to use dashboard

Cons

  • Only accredited investors can invest
  • High minimum investment of $25000

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Fundrise

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invest in real estate properties with a $10 minimum initial investment

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Low annual fees: advisory – 0.15%; management fee – 0.85%

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Invest in stocks and funds from $1 (no membership or commission fees)

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Follow other investors, see their portfolios, and exchange ideas

What is CrowdStreet?


Formed in 2014 by Tore Steen and Darren Powderly and based in Portland, Oregon, CrowdStreet is an online real estate investment platform that allows investors to choose from a wide range of offerings. 

As one of the best real estate investment platforms, CrowdStreet has built a team of real estate professionals with more than 120 years of collective experience.

Since it was launched, CrowdStreet has committed more than $1.65 billion investments across over 400 projects and earned up to $200 million in distributions. To date, more than 250 large real estate developers have used CrowdStreet technology to manage their investments and raise capital online.

CrowdStreet currently provides a wide range of property types, including multifamily, office, self-storage, industrial, etc. By combining commercial real estate investment with technology, the company aims at giving investors direct access to quality investment opportunities.

CrowdStreet at a Glance

  • Minimum investment -varies by the project
  • Management fee -Each investment has its fee structure
  • Asset classes- Commercial real estate
  • Best for- Accredited investors and those looking for specific real estate opportunities
  • Distributions-Varies by the project
  • Features- You can choose projects based on your distribution strategy, risk tolerance
  • Customer support-Phones, emails, and chatbots
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How Does CrowdStreet Work?


CrowdStrreet allows you to invest in;

Individual deals

This is the right option if you prefer to choose which properties your money goes to. It gives you the power to invest in your desired properties and enjoy the best deals. You can also monitor your investment performance and interact with the sponsors.

Tailored Portfolios

Tailored portfolios allow you to utilize customized investment strategies that align with specific goals

Diversified funds and vehicles

If you want to spread your money across multiple properties, CrowdStreet gives you access to single sponsor funds and CrowdStreet funds. While single sponsored funds focus on particular assets, CrowdStreet funds rely on broader set properties, including retail, office, multifamily, land opportunities, industrial, among others.

Who is CrowdStreet Best For?


CrowdStreet is best for:

  • Accredited investors
  • Rik tolerant investors
  • Investors willing to let their money sit for years
  • Investors who can do their due diligence

To become an accredited investor:

  • You must have an income that exceeds $200000 in each of the prior two years
  • Your network must be more than 1 million
  • You have must have trust assets worth $5 million

How Much You Can Earn with CrowdStreet?


Each CrowdStreet project provides a target investor internal rate of return that estimates how much you can earn on an investment. Since every deal is different, what you make depends on the deal you are working on. Currently, CrowdStreet has an average Internal Rate of Return of 18%.

To help you maximize your returns, you can;

  • Choose individual deals
  • Reinvest disbursements
  • Choose shorter investment periods
  • Avoid high expense investments
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CrowdStreet Fees: How Much Does it Cost to Invest with CrowdStreet?


While CrowdStreet doesn’t charge investors any fees, Sponsors pay a fee per investor. The total amount of fees is around 3% of the amount raised. Sponsors also pay a solution fee for the technology and services offered. These fees vary per project but generally include an annual management fee and one-time acquisition fee of between 1% and 2%.

Type of InvestmentFee
Tailored Portfolio0.25% to 5%
Sponsor Fees1-5%

CrowdStreet Features: What Does CrowdStreet Offer?


In-depth Research

CrowdStreet provides a detailed video webinar about the project to help you learn more about the details of the projects and ensure that the investment is in your portfolio. You can submit questions to the sponsor, listen live to each webinar, or watch recorded video later.

New Investment Thesis Feature

CrowdStreet’s New Investment Thesis feature gives you insights into how deals are evaluated and an insider perspective of commercial real estate. It also helps you understand what’s happening each week.

Accredited Investors Only

Currently, CrowdStreet investment opportunities can only be accessed by accredited investors.

Investing Guidance

With CrowdStreet’s Investing Guidance page, you can view instructional videos and articles about investment topics and get a link to Quick Start Guide to help you get started.

Past Performance

CrowdStreet regularly publishes its performance for real estate deals and returns. This is to help you make the best decision when investing.

Education Resources

This company also has an extensive investor resource center. You can read articles about investing in commercial real estate, join orientation events, or go through a quick startup guide to understand the platform and make your first real estate investment. 

Moreover, you’ll have access to StreetBeats which are videos where sponsors, investors, and industry leaders discuss the real estate market.

Complex Investments

Since Crowdstreet’s investment offerings are complicated commercial real estate deals, it’s best if you make sure it’s the right investment before committing your money.

CrowdStreet serves real estate sponsors by offering them options to raise capital and list real estate deals. As an investor, you can park your funds between three and seven years.

CrowdStreet Requirements


To join CrowdStreet, you need to;

  • Register with the website
  • Be an accredited investor
  • Choose the investment type that works for you
  • Have a minimum of $25,000

How Does CrowdStreet Protect Your Money?


Since Crowdstreet is not a bank or registered investment advisor, it’s not FDIC insured, and it’s also not registered with  SIPC or FINRA. This means if the company were to fail, you might lose all your investments.

But as part of its screening process, CrowdStreet evaluates the sponsor and researches the deal’s business plan to determine whether it’s the best or not.

CrowdStreet Reviews: Is CrowdStreet Legit?


CrowdStreet currently has a rating of C+ with Better Business Bureau, which shows it has an average level of consumer interaction. On Trustpilot, it has a rating of 3.7 based on 91 reviews, with most investors praising the platform’s variety of investment offerings, ease of use, and sponsor vetting process.

Aside from that, the most common complaints were about CrowdStreet’s customer service. Investors reported that the customer support team is difficult to reach and slow to respond. Other customers also had issues that they only accept accredited investors. Overall, Crowdstreet is a legitimate platform that provides everything you need to invest in real estate.

What are the CrowdStreet Pros & Cons?


CrowdStreet Pros

  • Direct access to different types of real estate sponsors and investors
  • Offers access to a variety of commercial spaces, including self-storage, multifamily, and data centers
  • Extensive quality educational resources and help center
  • Intuitive and easy to use dashboard
  • No fees for investors

CrowdStreet Cons

  • Only accredited investors can invest
  • High minimum investment of $25000

How Good Is CrowdStreet Support and Knowledge Base?


CrowdStreet provides customer support via phone, email, chatbot, and contact form. While chatting with the support or sending messages is possible 24/7, contacting the team via phone is only possible during business hours, Mondays to Fridays. However, the platform offers helpful customer support that makes it easy to get in touch with them.

CrowdStreet Review Verdict: Is CrowdStreet Worth it?


CrowdStreet is a well-developed platform with an easy-to-use dashboard and a wide range of offerings. With its diversity of investment offerings, easy-to-use interface, and intense vetting process, CrowdStreet can be considered one of the best real estate investment platforms.

Other things that make CrowdStreet stand out from its competitors include an investor dashboard, highly usable deal pages, and high transparency with frees.

CrowdStreet also includes detailed information and research on every deal posted on the platform, which gives you the ability to scout for good deals. 

CrowdStreet’s major downside is that it requires high start-up fees and is meant for large accredited investors. Unless you’re accredited, you cannot invest with the platform. But if you’re an accredited investor looking to diversify your portfolio, crowdfunding through CrowdStreet is worth it.

How to Sign Up with CrowdStreet?


To register with crowdStreet;

  • Go to the homepage and click sign up today
  • Sign up using Google, LinkedIn or email
  • Confirm whether you are an accredited investor
  • Fill in your details and provide any required documentation
  • Activate your account with 2 step verification

Sites Like CrowdStreet


CrowdStreetFundriseRealtyMogulPeerStreet
Minimum Investment$500$10$1000$1000
Account Fees1% per year15% Advisory fee, .85% Asset Management fee1% to 1.5%Typically 1%
Private REITYesYesYesNo
Customer supportEmail, phone, chatbots, and knowledge resource centerEmail, phoneEmail, phone, and knowledge base centerEmail,.phone
Investment optionsIndividual investors,Varies depending on the levelREITs, individual propertiesReal estate debt
Total Investor Distribution$220 million+124 million$136 million+225 million

CrowdStreet vs. Fundrise

Fundrise Summary

  • Low minimum starting investment of $10
  • High historical returns of 8.8% to 12.4%
  • 0.15% advisory 0.85% management fees
  • Diverse portfolios of up to 16 investments

Fundrise is an online platform that allows you to invest in commercial and residential real estate. While Fundarise is similar to CrowdStreet, its investments are done through investment portfolios which can be liquidated anytime. Its offerings are also available to every investor, contrary to CrowdStreet’s focus on accredited investors.

The platform’s Starter portfolio only requires a minimum investment of $10 compared to CrowdStreet’s $25000.This can be a huge benefit if you’re a low net investor who wants to diversify his portfolio. Plus, Fundrise allows you to upgrade your account to any of the five levels and access different investment portfolios.

One thing that sets CrowdStreet apart is pricing. While you don’t pay any fees on CrowdStreet, Fundraise charges a 1% management fee.

CrowdStreet vs. RealtyMogul

RealtyMogul is another Crowdfunding platform where you can invest your capital.  While RealtyMogul is open to accredited and non-accredited investors, if you’re a non-accredited investor, you can only invest in two privately traded REITs.

Apart from that, investing in RealtyMogul requires only $5000 as an investment which is a fraction of what CrowdStreet asks. You can also sell your REIT shares back to the platform after holding them for 12 months, and this gives you some flexibility. RealtyMogul also has one of the best due diligence processes in the industry.

CrowdStreet vs. Peerstreet

PeerStreet is a crowdfunding funding or peer-to-peer platform that connects lenders with borrowers looking for short-term loans for their real estate investments. Compared to CrowdStrret, the borrowers are professional investors who buy a home, fix it up, and resell it at a high price.

While PeerStreet investors are also accredited, it provides a lower startup fee of $1000 which is less than CrowdStreet’s $25,000. This means it’s easy to get started with PeerStreet. Otherwise, both platforms allow you to choose your loan portfolio, invest in property REITs and provide options for income and growth.

CrowdStreet FAQ


Does CrowdStreet have plans for non-accredited investors?

While there are no such opportunities for non-accredited investors, CrowdStreet plans to roll out its services to non-accredited investors at some point.

Is CrowdStreet a real estate investment trust?

No, CrowdStreet provides individual investors and small to medium-sized businesses an opportunity to invest in real estate projects.

What sets crowdStreet apart from its competitors?

CrowdStreet offers an expert investment team and has a rigorous review process, including performance history reviews and background checks.

Is CrowdStreet funding hard to get?

To get CrowdStreet funding, you have to go through CrowdStreet requirements, a process that can take up to one week

Is CrowdStreet the best app for commercial real estate?

CrowdStreet is a great platform that’s easy to use and has an extensive list of resources. 

CrowdStreet provides private managed account services through a registered investment advisor, CrowdStreet Advisors, LLC.

CrowdStreet Review

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