If you\u2019re an accredited investor, have \u00a0capital to invest, and want to diversify into real estate but don\u2019t have the time to be hands-on, CrowdStreet<\/a> might be a \u00a0great option for you. \u00a0Thanks to this platform, what used to only be accessible on Wall Street can now be a foundational piece in your portfolio. <\/p>\n\n\n\n In this CrowdStreet review, we\u2019ll take an in-depth look at the platform, including the pros and cons, key features, and how to invest. <\/p>\n\n\n The Bottom Line: <\/strong>Yes, CrowdStreet is a legit real estate investing platform.<\/p>\n\n\n\n With CrowdStreet<\/a>, accredited investors can leverage the power of crowdfunding to own a piece of a large commercial real estate project and earn passive income without the day-to-day hassles of operations and management. Whether you invest in a self storage development in New York or a value-add multifamily project in Texas, CrowdStreet lets you mitigate your stock market exposure and make real estate a foundational piece of your portfolio. <\/p>\n\n\n\n Plus, CrowdStreet\u2019s deal flow opportunities are top-notch, providing many different options to make passive income through real estate. <\/p>\n\n\n\n CrowdStreet<\/a>\u00a0is the largest online private equity real estate platform, with over 329K registered members, $4.3 billion invested, ad 790+ deals funded as of September 2024 (that’s significant growth since January 2023, when those numbers were $3.9 billion invested and 732 deals funded). With deal types ranging from Core to Value Add to Opportunistic, you have plenty of options to choose from to fit your \u00a0risk tolerance and investing style. <\/p>\n\n\n\n Here\u2019s how each investment profile differs on the risk scale:<\/p>\n\n\n\n Within these deal types, you can invest in a number of property types in different regions of the country:<\/p>\n\n\n\n The platform leverages the power of crowdfunding \u2014 investors pool their money together with others to purchase property (or a share of property). Traditionally, if you wanted to buy a multifamily property, you\u2019d have to source the deal, come up with the funds, work with a lender for financing, get the deal to the closing table, THEN stabilize it afterwards.<\/p>\n\n\n\n CrowdStreet<\/a> gives accredited investors access to deals normally set aside for Wall Street. You can take advantage of the real estate without the landlording and management hassle. <\/p>\n\n\n\n You may have heard of other real estate crowdfunding platforms in the past few years. What makes CrowdStreet<\/a> stand out? <\/p>\n\n\n\n I\u2019m a huge fan of utilizing platforms like CrowdStreet to invest in real estate. The first thing I want to know is how their deals are vetted. <\/p>\n\n\n\n CrowdStreet\u2019s Capital Markets team<\/a> scours every region of the United States looking for viable sponsors and potential deals. These deals are put through a three-step vetting process, where only 5\/100 deals ever make it to the Marketplace for CrowdStreet investors.<\/p>\n\n\n\n Here\u2019s a breakdown of CrowdStreet\u2019s deal screening process:<\/p>\n\n\n\n Needless to say, CrowdStreet differentiates itself from other platforms by offering a deep selection of highly-vetted commercial real estate projects across the country. <\/p>\n\n\n\n Below is a CrowdStreet review of key figures from recent deals:<\/p>\n\n\n Investors can open an account for free. So how does CrowdStreet<\/a> make their money?<\/p>\n\n\n\n CrowdStreet<\/a> fees vary based on the deal complexity and the sponsor involved. Sponsor compensation typically takes the form of a promote<\/strong> or profit fee<\/strong>. The promote<\/em> means profit is realized once the project meets certain criteria. This incentivizes the sponsor throughout the deal. <\/p>\n\n\n\n Sponsors charge fees at different stages of a deal. Here are the sponsor-related fees in a typical commercial real estate offering:<\/p>\n\n\n\n Sponsor fees depend on the complexity of the project. Each project requires a fair amount of legwork, including sourcing and managing the deal and executing on the business plan for shareholders. These are all common fees in the crowdfunding model, but can vary based on the deal. <\/p>\n\n\n\n![\"Untitled\"\/](\"https:\/\/www.wallstreetzen.com\/blog\/wp-content\/uploads\/2023\/03\/Untitled-30.png\")
<\/a><\/figure><\/div>\n\n\nCrowdStreet Review: Is CrowdStreet Legit?<\/strong><\/h2>\n\n\n\n
What is CrowdStreet?<\/h2>\n\n\n\n
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CrowdStreet\u2019s Key Numbers<\/strong><\/h2>\n\n\n\n
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Pros and Cons of CrowdStreet<\/strong><\/h2>\n\n\n\n
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