CrowdStreet Review 2024: Pros, Cons and How It Compares

CrowdStreet makes it easy to invest in commercial real estate projects nationwide by pairing individual investors with project developers.

Developers are reviewed by CrowdStreet — including background and reference checks — which helps narrow the field of commercial real estate opportunities for investors who may not have the time or inclination to do that first round of review on their own. Still, investors should do their own due diligence on the developer as well as the project to make sure they understand the potential risks.

As an investor, you can pick individual properties (in which case you’ll interact directly with the project sponsor) or buy into CrowdStreet backed funds, which, like mutual funds, are composed of a diverse lineup of real estate projects.

The minimum investment varies by offering and is set by the sponsor. Most of the individual projects and real estate funds available on the CrowdStreet site require a minimum investment of $25,000.

CrowdStreet is best for:

• Accredited investors.

• Investors willing to let their money sit for years.

• Risk-tolerant investors.

• Investors willing to do their own due diligence.

CrowdStreet at a glance

CrowdStreet features you should know

In-depth research: Individual investment offerings on CrowdStreet’s website include a detailed video webinar about the project, which is a useful way for investors to learn more about the specific details of the development and to ensure that the investment belongs in their portfolio. You can listen live to each webinar and submit questions to the project sponsor, or watch the recorded video later.

Crowdstreet's Investment Thesis feature gives investors insight into how potential deals are being evaluated along with Crowdstreet's outlook on various asset classes (such as hospitality, industrial, medical office, multifamily, office, retail, self storage, senior housing and student housing) and geographical locations within the real estate industry.

Investing guidance: Crowdstreet maintains a large library of educational content, including insights from its chief investment officer, local and regional market analysis and coverage of economic trends. The platform also offers instructional videos and articles about general investing topics, such as “How to review an investment offering” and “Understanding internal rate of return." And we found the website's help center informative, with answers to most general questions investors might have about the platform.

Accredited investors only: Currently, all of CrowdStreet’s investments are available solely to accredited investors. These investors have a net worth, excluding the value of their primary residence, of at least $1 million, or annual income in each of the past two years of at least $200,000 if single or $300,000 if married. If you’re not an accredited investor, check out our list of real estate platforms, which has a section for nonaccredited investors.

Complex investments: CrowdStreet’s investment offerings are complicated commercial real estate deals, and investors should make sure this is the right investment for them before they invest their money. Here are some caveats to keep in mind:

• Each CrowdStreet project is different, and each requires your own due diligence, over and above CrowdStreet’s review process, to make sure the project fits in your overall portfolio.

• These real estate investments are illiquid, so be prepared to leave your money invested for a few years (see each project page for details on its target investment period, which typically ranges from three to five years).

• Some projects may start paying a return early, while others may take years.

• Some projects may fail to fund, and your money will be returned to you.

• As with any investment, you may lose money. CrowdStreet posts results for deals that have now closed, so you can see past performance results. But remember that past results don't predict future performance.

» Compare before investing: Best real estate crowdfunding platforms

Is CrowdStreet right for you?

There’s no doubt that adding real estate to your portfolio can be a smart move — real estate is a useful way to diversify your overall investment portfolio. The easiest way to do that is with a publicly traded real estate investment trust, or REIT, which you can trade like a stock, or a REIT mutual fund or REIT ETF. REITs are available to all investors and have lower minimums than CrowdStreet’s projects.

» Read more about how to invest in real estate

Plus, there’s a market for publicly traded REITs — that is, they’re a liquid investment you can easily get out of — and a REIT mutual fund is a one-stop shop for a diversified real-estate investment.

But it’s also true that the prices of shares of publicly traded REITs tend to move somewhat in tandem with the overall stock market. Investing in properties directly, through a site such as CrowdStreet, may offer better diversification. When REITs drop in price, the values of real estate developments could hold steady or even rise.

If you’re looking for that extra level of diversification, you have time to research the projects available on CrowdStreet, you can afford to let your money sit for a few years, and you’re an accredited investor, then the site offers a useful and easy way to add commercial real estate projects to your investment portfolio.

Note: CrowdStreet also offers private managed account services through its registered investment advisor, CrowdStreet Advisors, LLC. That investment advisor and its service, however, are not the subject of this review.