CrowdStreet is a well-known commercial real estate crowdfunding platform for accredited investors to access real estate-backed equity and debt opportunities. It is not available to unaccredited investors.
Business Insider's personal finance team compared CrowdStreet to the best real estate investing apps. We found it to be an industry leader for earning passive income as an accredited investor. However, its investments are highly illiquid.
Pros and Cons
CrowdStreet Pros
- Offers pre-vetted commercial real estate options (debt and equity options)
- Fee-free
- Fund portfolios and individual investment options
- Transparent risk categories
CrowdStreet Cons
- Not available to non-accredited investors
- High $25,000 minimum
- Highly illiquid investments
Open an Account
$25,000
0% investors; 1-5% fee for sponsors; 0.25% to 2.5% tailored portfolios
- Offers a wide range of commercial real estate options for accredited investors.
- Charges investors no fees (sponsors may charge fees)
- Doesn't charge investors fees
- Risk-assessed investment options
- Not available to non-accredited investors (those who have a net worth lower than $1 million)
- Account minimums are on the higher side
- Not for those in search of shorter investment terms and more liquid investments
- Only available to accredited investors
CrowdStreet is one of the best real estate investing apps for accredited investors who want access to commercial real estate-backed equity and debt investment opportunties.
- Consider it if: You're an accredited investor with at least $25,000 to set aside for multiple years.
- Awards: Listed on Forbes' Best Startup Employers list for 2021
Compare CrowdStreet
$10
0.85% for real estate (additional 1% and $125 for IRAs)
- Available to non-accredited investors
- Low minimum account size requirements
- Varying risk and volatility options
- Passive income
- Investments are illiquid
- Illiquid investment options
- Not ideal for short-term investing
Fundrise is one of the best real estate investing apps for non-accredited investors looking for affordable crowdfunding investment options. The platform accepts clients regardless of annual income or net worth.
Fundrise- Consider it if: You're looking for an easy and inexpensive way to start investing in real estate.
- Awards: Listed in Forbes Fintech 50 list twice
$10,000
1% to 4%; 1.5% for Alternative Income Fund
- Access to alternative investments, including art, real estate, and legal settlements, that allow investors with plenty of assets to further diversify their portfolios
- Investors receive regular interest payouts over the life of the loan
- Higher-risk investments — best for those with a large amount of money to invest; limited investments available
- Fees may be higher than other types of investment accounts
- Investments are highly illiquid
Yieldstreet is best for experienced, high-income/high-net-worth investors, but folks who don't have six figures to invest in should look elsewhere. Yieldstreet is one of the best real estate investing apps for folks interested in real estate and alternative investments.
Yieldstreet- Consider it if: You're a high-net-worth investor interested in diversifying your investments across real estate and other alternative assets.
- Awards: Listed on CB Insights' Fintech 250 ranking as a Top Fintech Startup
$5,000 (minimums can also range between $10,000 and $30,000)
Varies; typically 0.5% (EquityMultiple also charges annual administrative expense fee of $30-$70)
- Low fees
- Option to invest in institutional commercial real estate, equity, preferred equity, and senior debt
- Multiple property types
- Self-directed IRAs available
- Only accepts accredited investors
- Doesn't offer publicly traded REITs
EquityMultiple is one of the best real estate investing apps for accredited investors. It offers commercial real estate assets, senior debt, equity, and preferred equity.
EquityMultiple- Consider it if: You're an accredited investor looking to invest at least $5,000 into commercial real estate.
CrowdStreet Overview
is a web-based online marketplace offering pre-vetted institutional-level commercial real estate investments. Investors can be paired with a project developer to invest in individual properties or diversify their holdings with CrowdStreet-backed funds.
CrowdStreet is only available to accredited investors. To qualify as an accredited investor, you must have a net worth of over $1 million (individually or with a spouse). Or, you must have an annual income of over $200,000 ($300,000 with a spouse) for the last two years.
The platform offers a range of income and growth-focused debt and equity real estate investing opportunities — including multifamily, retail, and industrial — with varying geographical locations and risk profiles. Distributions are usually paid out quarterly or monthly based on sponsors' preferences. CrowdStreet
However, you should be prepared to have your money locked up for at least three to five years. Once you've sent funds to an investment, you'll have to contact CrowdStreet's customer service if you want to withdraw early during an active investment period. Early withdrawal attempts at this point are not guaranteed.
Regarding customer support, CrowdStreet only provides email, contact forms, and an online chatbot.
Investors get unlimited access to market insight, tools, and trading services. Overall, CrowdStreet is a great way to diversify your investment portfolio within the real estate marketplace. But it's only available to accredited investors for a high $25,000 minimum.
Only investors who understand the risks associated with real-estate investing and are accredited should use CrowdStreet. Real estate investing is not recommended for beginners.Ω
Ways to Invest with CrowdStreet
CrowdStreet divides its investment opportunities into four categories based on intended strategy and perceived risk:
- Core: Core properties pose the least perceived risk. They invest primarily in major metropolitan areas like New York and LA. Core assets are relatively stable, providing steady returns with low leverage returns.
- Core-Plus: Properties within the Core-plus strategy have many of the same characteristics as Core assets but with slightly more risk for increased leverage returns. Leverage is still relatively limited.
- Value-Added: Assets in this investment strategy are typically fixer-uppers, such as apartments with vacancy issues or properties needing substantial renovations. A specific business plan is usually laid out to improve the underlying asset when investing in a value-added asset. There is a fair amount of risk involved with increased leveraged returns.
- Opportunistic: Opportunistic assets pose the most risk. The underlying properties face significant problems, including structural issues, major vacancies, and even foreclosed assets. This investment strategy aims to make a complete turnaround through proper renovation and expertise. CrowdStreet says Opportunistic assets vary greatly and are only recommended for sophisticated investors.
CrowdStreet Funds and Vehicles
CrowdStreet's diversified funds and vehicles investment option is best for those who want to spread money across multiple properties. Depending on the fund, properties may be diversified across multiple regions.
Property types include multifamily, retail, office, industrial, land opportunities, and other vehicles provided by real estate companies. The screening process for CrowdStreet funds includes risk analysis, market research, financial modeling, and offering memorandum.
When reviewing a fund opportunity, CrowdStreet provides in-depth information on the underlying properties invested in the fund, the fund manager (including performance history and management rating), the investment strategy, target markets, and investor return structure.
CrowdStreet Individual Deals
CrowdStreet's individual deals option is best for those who prefer to pick and choose which properties their money goes to directly. This option allows you to invest in your favorite properties with access to a team of investment experts.
You get a preview of the property you invest in, the intended strategy, the target hold period, and the sponsor. Crowdstreet lists the sponsored designation (Enterprise, Tenured, Seasoned, or Emerging) based on their expertise and track record.
CrowdStreet Fees
You can open a CrowdStreet account for free, but you'll need at least $25,000 to invest in a fund opportunity or individual investment.
CrowdStreet does not charge investors fees; sponsors do, however, charge a 1.5% technology fee. Since sponsors can charge investors for investment products, the 1.5% technology fee is often pushed to individual investors.
There's also a 1.5% of assets under management fee when you invest in CrowdStreet's C-REIT.
Otherwise, you can view potential fees when reviewing investment opportunities on the CrowdStreet platform.
CrowdStreet Trustworthiness
CrowdStreet has an A+ rating from the Better Business Bureau. BBB scores range from A+ to F. When analyzing companies, the bureau considers multiple factors. These include licensing and government actions, advertising issues, and bankruptcy.
In July 2023, Attorneys Joshua Kons, Andrew Stoltmann, Joseph Wojciechowski, and Sara Hanley filed an arbitration claim with FINRA on behalf of a dozen investors who were affected by $63 million worth of investor funds that went missing from two Nightingales Properties investment opportunities. These investments were made available through the CrowdStreet marketplace.
CrowdStreet Alternatives
Here's how CrowdStreet compares to similar platforms.
CrowdStreet vs. RealtyMogul
CrowdStreet and RealtyMogul both offer multiple commercial real estate investment opportunities for generating cash flow, but non-accredited investors won't be able to access CrowdStreet's offerings. If you're not accredited, RealtyMogul is the better option, with a lower minimum ($5,000) and multiple asset classes like REITs.
CrowdStreet offers a stronger selection for accredited investors with in-depth pre-investment information, experienced sponsors, risk-categorized investment strategies, and no investor fees.
Both CrowdStreet and RealtyMogul's offerings are highly illiquid.
CrowdStreet vs. EquityMultiple
EquityMultiple and CrowdStreet are both solely available to accredited investors. The two platforms offer similar investment opportunities, such as commercial real-estate-backed debt and equity, but they differ regarding investment terms, strategies, and fees.
EquityMultiple has a much lower investment minimum — $5,000 (minimums can also range between $10,000 and $30,000) — compared to CrowdStreet. It offers three investment strategies (grow, earn, and keep) that less-experienced real estate investors may find easier to grasp than CrowdStreet's risk-based strategy.
CrowdStreet is the stronger option for investors with large account balances. It doesn't charge fees, and all investment opportunities (including funds) have at least a $25,000 minimum investment requirement. That said, EquityMultiple has significantly more investment opportunities than CrowdStreet.
CrowdStreet FAQs
Yes, CrowdStreet is a safe platform offering pre-vetted real-estate-backed investment opportunities with the potential for steady returns. However, its vetting process was questioned after multiple investors lost money with the Nightingale scandal.
CrowdStreet does not charge its investors fees, but some sponsors may charge fees on certain investment opportunities. Fees from sponsors are generally around 1.5%.
No, if you're not an accredited investor, you can't invest with CrowdStreet. Only accredited investors can use CrowdStreet.
Why You Should Trust Us: How We Reviewed CrowdStreet
CrowdStreet was reviewed using Business Insider's rating methodology for investing platforms to compare and examine account types, pricing, investment options, and overall customer experience. Each real estate investment platform also receives a liquidity rating based on how it compares next to other real estate apps, not other types of investment apps. Platforms are given a rating between 1 to 5.
Real estate investing platforms generally offer low fees, multiple asset classes, financial tools, and other resources. CrowdStreet was evaluated, focusing on its performance in each category.
Business Insider's Overall Crowdstreet Rating
| Feature | Insider rating (out of 5) |
| Fees | 4.00 |
| Investment selection | 3.50 |
| Liquidity | 2.00 |
| Ethics | 3.50 |
| Access | 4.50 |
| Customer support | 3.50 |
| Overall score | 3.52 |
