Real estate investors looking to diversify their portfolios may want to consider looking at a platform like Crowdstreet. With this platform, investors can diversify their real estate assets for less money than they would spend if they were buying individual properties.Crowdstreet investors can choose from individual commercial real estate transactions or invest their money in funds that target specific areas of the real estate market.Crowdstreet allows qualified investors to invest in private real estate projects starting at just $25,000.
Crowdstreet is a commercial real estate investment platform that allows investors to access the commercial and multi-family real estate transaction market. The platform offers investors the ability to invest in specific deals, diversified funds or vehicles, or have a tailored portfolio curated by an investment manager.
Crowdstreet was launched in 2014 in Portland, Oregon by Tore Steen and Darren Powderly. Since then, they have built a team of real estate professionals with a collective track record of more than 120 years and a proven track record of performance. Since its launch, Crowdstreet has provided more than $1 billion in investments to 112,000 investors in more than 400 projects. To date, more than $135 million has been distributed to investors with an average internal rate of return of 23.1%.
What is Crowdstreet?
Crowdstreet is a commercial real estate investment platform that allows investors to access the commercial and multi-family real estate exchange market. The platform offers investors the ability to invest in specific deals, diversified funds or vehicles, or have a tailored portfolio curated by an investment manager.
Crowdstreet was launched in 2014 in Portland, Oregon by Tore Steen and Darren Powderly. Since then, they have built a team of real estate professionals with a collective track record of more than 120 years and a proven track record of performance. Since its launch, Crowdstreet has provided more than $1 billion in investments to 112,000 investors in more than 400 projects. To date, more than $135 million has been distributed to investors with an average internal rate of return of 23.1%.
How does Crowdstreet work?
Crowdstreet is an Internet-based platform that enables real estate investors to fund private real estate projects across the U.S. However, Crowdstreet is not a middleman and investor funds flow directly to the sponsors of the real estate projects.
When investing in real estate transactions through Crowdstreet’s marketplace, investors have three options.
- Individual offers
- Real estate funds and vehicles
- Tailor-made portfolios
- The minimum investment required by Crowdstreet varies depending on the type of investment you choose. Individual transaction minimums vary by program. At the time of publication, the minimum investment required for a single transaction is $25,000. Minimums for real estate funds and vehicles also vary by program, ranging from $25,000 to $100,000.
A customized portfolio is a privately managed account with a Crowdstreet advisor that requires a minimum of $250,000. This larger initial investment allows your registered investment advisor to create a custom-designed diversified investment strategy.
How much money can you make with Crowdstreet?
As with most investments, there is no guarantee that you will make money investing with Crowdstreet. That said, each program offers a target investor internal rate of return. This is not a guaranteed return. Instead, the IRR estimates how much an investor can expect to earn from the project or investment. In this case, the IRR projection includes the monthly profit and any profit that will be made when the property is sold.
When you view opportunities in the Crowdstreet market, you will see the target investor IRR highlighted in the overview or when you click View Details.
In most real estate transactions, these funds look to invest in commercial real estate for a limited period of time and then sell for a profit. This sale is referred to as a capital event and investors will participate in these proceeds. During the time the building is held, the investor will participate in the net cash generated by the operation when the sponsor decides to distribute the profits.
Each transaction is different and you will need to review the current real estate offerings to find the deal that best meets your goals.
How do you invest on Crowdstreet?
To invest with Crowdstreet, you need to open an account, verify that you are a qualified investor, and then choose the type of investment that is right for you. You can invest in individual projects, use real estate funds or vehicles, or work with an investment advisor to create a customized portfolio.
