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.
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. This is a touch above the average realized return of 17.3% across the 63 deals that have gone full circle on the platform, as should be expected for investments that are considered to be on the riskier end of the spectrum among deal types that they offer.
Having invested via both Crowdstreet and numerous other real estate investment companies over about a 4-year period, I’m in a good position to compare and contrast Crowdstreet and my experience with them with that of other options for your real estate dollars.
I cannot say that I am unbiased; Crowdstreet is an advertiser and referral partner of Physician on FIRE. That said, I have invested $55,000 of my own money in two deals on the platform thus far.
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.