SUMMARY
Crowdstreet
CEO = John Imbriglia
COO = Shaun Mulreed
CFO = Genni Combes
Founded in 2014 by Tore Steen and Darren Powderly, CrowdStreet emerged in response to the heavy reliance on exchange-traded equities, which became evident during the 2008 financial downturn. Steen and Powderly recognized the need for diversification beyond public markets and established CrowdStreet to provide individual investors with greater access to real estate, the third-largest asset class in the United States.
Since its inception, CrowdStreet has grown into one of the leading crowdfunding platforms for real estate investments. The platform serves as a marketplace where investors can explore various real estate opportunities presented by sponsors seeking financing through crowdfunding. Additionally, CrowdStreet offers a range of real estate investment options, including funds and real estate investment trusts (REITs), some of which are managed by CrowdStreet itself, while others are overseen by external firms.
CrowdStreet has established a strong reputation in the real estate crowdfunding sector, with over 300,000 investors contributing approximately $4.2 billion across more than 798 deals. However, the platform faced scrutiny when a sponsor’s CEO was accused of misappropriating investor funds in a failed deal.
To access the CrowdStreet marketplace, users must create an account using their email address. Once registered, they can review detailed investment opportunities, including due diligence reports, to make informed decisions. Investing in CrowdStreet deals requires completing a Know Your Customer (KYC) process to verify accredited investor status and ensure real estate investing aligns with their financial situation.
Investors can choose from individual real estate deals, REITs, or funds available on the platform. These funds and REITs may be managed by CrowdStreet Advisors or third-party firms. Each investment opportunity provides extensive information, including sponsor presentations, risk assessments, business plans, financial projections, and expected returns.
The platform features several types of investment options, including standalone property transactions and customized portfolios managed by CrowdStreet Advisors, which require higher minimum investments and advisory fees.
As one of the most well-established real estate crowdfunding platforms, CrowdStreet is a top choice for experienced investors. It connects accredited investors with real estate sponsors looking for funding, with a minimum investment starting at $25,000. In addition to individual real estate deals, the platform offers professionally managed funds and REITs.
While CrowdStreet conducts thorough vetting of sponsors and deals before listing them on the marketplace, it does not directly manage investments between sponsors and investors. However, its proprietary funds and REITs may include selected deals from the marketplace.
Pros
- Lots of different varied offers across multiple different markets
- Good content and material provided by the platform
- Well designed and easy to use platform
Cons
- High minimum investments 25000$
- Money is held up in investments, which means no liquidity
- High fees on deals