In the world of real estate investing, it’s crucial to ensure that you’re partnering with reputable platforms and companies to avoid scams or unreliable services. One popular real estate investment platform is CrowdStreet, but is it a trustworthy platform or just another scam?
In this article, we’ll dive deep into examining all aspects of CrowdStreet, including its background, features, pros, cons, security measures, and customer reviews to determine if CrowdStreet is a scam or a legitimate real estate investment platform. Let’s get started!
Company Background
Founded in 2013, CrowdStreet is a platform that connects accredited investors with commercial real estate investment opportunities. The company’s mission is to democratize access to high-quality commercial real estate investments by enabling individual investors to invest alongside institutions and real estate developers directly. CrowdStreet has raised over $25 million in funding from investors such as Rally Ventures and Grotech Ventures.
Through its online marketplace, CrowdStreet offers a range of investment opportunities, including individual offerings, investment funds, and tailored investment portfolios. The platform extensively vets investment opportunities before listing them, ensuring that only credible projects make it onto their marketplace. In addition, CrowdStreet provides investors with educational resources and tools to help them make informed decisions.
CrowdStreet is a legitimate real estate investment platform that is registered with the US Securities and Exchange Commission (SEC) and operates under Title II of the JOBS Act, which allows for general solicitation of investments.
Features and Benefits
1. Diverse Investment Offerings
CrowdStreet’s platform provides investors with access to a variety of commercial real estate investment opportunities, ranging from industrial properties and office buildings to retail centers and multifamily apartments. Investors can choose to invest directly in individual offerings, allowing them to hand-pick the properties they want to add to their portfolios.
2. Investment Funds
CrowdStreet also offers investment funds, which allow investors to diversify their exposure to the commercial real estate market through a single investment. These funds generally invest in multiple properties or projects, helping to mitigate risk and provide additional diversification to an investor’s portfolio.
3. Tailored Investment Portfolios
CrowdStreet provides investors with the option to create tailored investment portfolios, which are custom-built based on an investor’s specific investment goals, risk tolerance, and preferences. This provides increased personalization and allows investors to tailor their investment strategy to their individual needs.
4. Extensive Vetting Process
Before listing any investment opportunities on its platform, CrowdStreet conducts a thorough vetting process to ensure the credibility and investment viability of each offering. This process includes extensive due diligence on both the sponsor (the developer or operating company) and the specific property or project being offered. CrowdStreet only lists investment opportunities that have successfully passed its comprehensive evaluation criteria.
5. Educational Resources and Tools
CrowdStreet offers a wealth of educational resources, including articles, webinars, ebooks, and market reports, which are designed to help investors make informed decisions when considering and selecting commercial real estate investments. By providing this information, CrowdStreet aims to empower individual investors with the knowledge needed to navigate the commercial real estate investing landscape successfully.
Pros
- Diverse investment offerings: CrowdStreet offers a wide range of commercial real estate investment opportunities, catering to investors looking for diversification within the market.
- Thorough vetting process: CrowdStreet’s exhaustive due diligence process helps to minimize the risk of scams or poorly-performing investments making it onto their platform.
- Access to institutional-quality investments: The platform’s connections with developers and operating companies enable investors to access institutional-quality investments directly.
- Customizable portfolios: With tailored investment portfolios, investors can build a personalized real estate investing strategy.
- Extensive educational resources: CrowdStreet’s commitment to investor education helps users make informed decisions while using the platform.
Cons
- Accredited investors only: CrowdStreet is only accessible to accredited investors, which may limit the platform’s reach to the broader investing public.
- Minimum investment requirements: The platform’s investment opportunities typically have minimum investment amounts, which can be relatively high, potentially limiting accessibility for some investors.
- No secondary market: Currently, there is no secondary market for selling your investments on CrowdStreet, meaning you may need to hold onto your investments for the entire term.
Addressing Negative Customer Reviews
We have Invested in Multiple offering. Last one they brought OC-Ventures.com for XChicago student Housing who is Fraudulent, Could not close Deal, and refuses to Refund money back since August 2022. Crowdstreet of No help even though they didn’t do due diligence and brought them to platform. No phone number for customer service, when you write email, They reply but don’t answer your questions. One has to take legal action on Crowdstreet and sponsor. As long as everything goes o.k. you are ok, but when things go wrong , you are on your own . NO HELP FROM CROWDSTREET.
In the provided negative review, the reviewer mentions an issue with OC-Ventures.com and claims that CrowdStreet is of no help in resolving the issue. While we understand the frustration this reviewer has experienced, it’s essential to note that this is an isolated incident, and the vast majority of CrowdStreet’s investment offerings have not encountered such issues.
CrowdStreet extensively vets its offerings and strives to provide investors with the highest quality investment opportunities; however, it’s crucial to understand that with any investment, there are always risks, and situations like this may arise. If you’re still unsure if CrowdStreet is a scam, you might want to check out First National Realty Partners as an alternative.
Security and Privacy
CrowdStreet takes security and user privacy very seriously, implementing various measures to protect user data and financial information.
- Encryption: CrowdStreet uses bank-level encryption to protect user data, ensuring that all data transmitted between devices and the platform is encrypted and secured.
- Two-Factor Authentication: To enhance account security, CrowdStreet offers two-factor authentication, which requires users to provide additional verification through a code sent to their email or phone.
- Privacy Policy: CrowdStreet has a comprehensive privacy policy in place that outlines how the platform collects, uses, and shares user data. The platform does not sell user data to third parties or share information with advertisers without consent.
Final Verdict – Is CrowdStreet a Scam?
After examining CrowdStreet’s background, features, pros, cons, and security measures, we can confidently conclude that CrowdStreet is not a scam. This legitimate real estate investment platform offers accredited investors access to a diverse range of commercial real estate investment opportunities while emphasizing investor education and thorough due diligence on its listed offerings.
While no investment platform is perfect, and some drawbacks exist, CrowdStreet remains committed to connecting investors with high-quality, carefully vetted real estate investment opportunities.
If you’re considering CrowdStreet for your commercial real estate investment needs, it’s essential to conduct thorough research, understand the risks involved, and make informed investment decisions that align with your goals and financial situation.
Click here to learn more about CrowdStreet.