When (and how) can you sell CrowdStreet investments?
Currently, there is no secondary market for your CrowdStreet investments. You’re in it for the duration of the investment term when you invest.
Going mobile: Is there a CrowdStreet app?
There is not a mobile app, but the website functionality on a smartphone is great and likely all you need to stay on top of your investments if you're on the go.
Crowdstreet risks: Is CrowdStreet safe to invest with?
As with other platforms, this is a multi-part answer. The first part deals with the risk of a CrowdStreet failure and the implications for any investments made through its platform.
Well, there's good news in this regard. Since your investments are made directly with the sponsor and not with CrowdStreet, a CrowdStreet failure wouldn't have any direct impact on the real estate asset you're invested in.
It could, however, potentially disturb the flow of information between investors and the sponsor. This is because the CrowdStreet dashboard serves as the communication tool today, and this would create some administrative headaches for sponsors while also leaving investors in the dark until alternative communications tools could be put in place.
With that said, CrowdStreet doesn't strike us as a business that's at risk of going under. We independently verified that it has been able to raise capital multiple times to fund its growth, and revenues have consistently grown at high rates over the past several years due to the success of its platform at connecting sponsors with great projects and investors with capital. That was true even during the market turbulence of 2020 as the company enjoyed a record-breaking year, which boosted its revenue and cash position. As a result, CrowdStreet entered 2021 with its strongest financial position in history.
Investors may have questions about the safety of the underlying investments offered on CrowdStreet. As of early 2021, 44 deals have been fully realized with three resulting in a loss, while the rest have generated positive returns.
Considering this, it's probably best to describe the relative safety of deals featured in its marketplace as being, on average, not necessarily any more or less safe than most of its high-quality peers. It practices standard due diligence that serves as a starting point, but it's the responsibility of you, the investor, to study each real estate offering and decide if the risk/return profile is appropriate for you while also accepting that the risk of a permanent loss of capital comes with the territory.
A combination of things make CrowdStreet stand out among the crowdfunding real estate companies, including its:
- Highly usable deal pages and investor dashboard.
- Consistent deal flow across a range of commercial real estate types and project lengths.
- High transparency with fees and past deal performance.
Yes, some investors on its platform have experienced a deal gone bad, wiping out a significant portion of their capital, but CrowdStreet gets credit for making the realized results of all of its offerings public. This commitment to transparency should be lauded.
CrowdStreet's due diligence is comprehensive and transparent. Brandon Burns, a sponsor from San Diego, commented, "I have listed deals on CrowdStreet and their due diligence is super deep. It took me three months to get my last deal listed. It was a pain, but it props them up."
As a whole, CrowdStreet is one of the better crowdfunding platforms for accredited investors. It balances a healthy deal flow with excellent due diligence, enabling investors to earn strong returns against minimal losses thus far. Add in its transparency and educational resources, and it stands out in this crowded sector.