An Honest Review of an Online Real Estate Investing Marketplace

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Founded in 2013 shortly after the passage of the JOBS Act allowed for this business model, Crowdstreet has emerged as a leading platform connecting accredited investors to a wide variety of real estate investments via its crowdfunding platform.

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I have personally invested in two ground-up building projects through Crowdstreet. The first is a student housing project in Texas in late 2019 and the second being a workforce housing project in another part of Texas in early 2021. Both have projected annual returns (as measured by IRR) of greater than 20% annually.

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This is a touch above the average realized return of 17.7% across the 115 deals that have gone full circle on the platform as of July, 2022, as should be expected for investments that are considered to be on the riskier end of the spectrum among deal types that they offer.

Crowdstreet Deal Flow

While being the biggest doesn’t automatically make one the best, I feel that Crowdstreet stands out for both the variety and quantity of deals offered. Some real estate companies, like Origin Investments and DLP, solely offer funds for the accredited investor. Others, including Fundrise, Groundfloor, and Diversyfund, offer funds specifically for non-accredited investors.

These funds are a great way to get instant diversification in passive real estate, but you have little control over what types of investments you make and where you make them.

The most similar platforms to Crowdstreet are probably EquityMultiple, Alpha Investing and RealtyMogul. All three offer individual deals and an occasional real estate fund. What sets Crowdstreet apart is both volume and breadth of deal types offered.

In terms of variety, they’ve offered investments in the following real estate asset classes: Office, Industrial, Hospitality, Senior Housing, Retail, Single Family, Flex/Office, Multi-Asset, Mixed-Use, Multifamily, Storage, Flex R&D, Cannabis, Charter School, Bank Note, Medical Office, Data Center, Student Housing, Manufactured Housing, Build-to-Rent, Parking Garage, Land, Co-living, and Veterinary.

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