Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate investing products to write unbiased product reviews.
CrowdStreet
On CrowdStreet's website
Insider’s Rating
4.08/5
Perks
CrowdStreet offers institutional-level investments (those that are usually available to public entities and larger-scale investors) in commercial real estate.
Account Minimum
$25,000 (up to $250,000 for some offerings)
Fees
0% investors; 1-5% fee for sponsors; 0.25% to 2.5% tailored portfolios
Pros
- Offers a wide range of commercial real estate options for accredited investors: Individual deals, diversified funds and vehicles, and tailored portfolios (See a complete list of its properties here).
- Charges investors no fees (sponsors may charge fees)
- Caters to real estate sponsors who want to list properties and deals on the CrowdStreet marketplace
- Offers educational resources and expert insights
Cons
- 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
- No mobile app access
Insider’s Take
CrowdStreet is one of the best real estate investing apps for active and passive accredited investors who want access to a wide range of commercial real estate investments.
Product Details
- Consider it if: You're an accredited investor with at least $25,000 to set aside for multiple years.
- App store rating: No mobile apps
- Awards: Listed on Forbes' Best Startup Employers list for 2021
Crowdstreet is one of the best real estate investing apps for accredited investors to invest in commercial properties that typically wouldn't be available to regular people.Jennifer Streaks, Senior Personal Finance Reporter & Spokesperson
About CrowdStreet
CrowdStreet is an online marketplace offering institutional-level investments (those that are usually available to public entities and larger-scale investors) in commercial real estate. Its services are limited to accredited investors, but it charges investors no fees to register or access real estate listings.
You can invest in diversified funds and vehicles, individual deals, and tailored portfolios. Like many other real estate investing platforms, you may be able to invest with a self-directed IRA (SDIRA).
CrowdStreet serves real estate sponsors by offering them options to raise capital and list real estate deals on the CrowdStreet marketplace. Investors, however, should be prepared to park their funds between three and five years (though investment terms for some offerings may range up to 10 years).
Most of its choices are illiquid, meaning you won't be able to convert them to cash as easily as you would a stock or ETF.
It doesn't currently have mobile apps, but you can sign up for web access with a Google or LinkedIn account.
Is CrowdStreet Right For You?
Only accredited investors can use CrowdStreet. Accredited investors are individuals who have a minimum net worth of $1 million or have a $200,000 salary ($300,000 for couples). Only folks willing to invest at least $25,000 should open an account with CrowdStreet.
CrowdStreet is suitable for both active and passive investors. Since the platform has multiple portfolio options, you can choose a self-managed or fully managed account (aka tailored portfolios). But you'll need to meet a high minimum to access managed portfolios.
Crowdstreet: Overall Rating
| Feature | Insider rating (out of 5) |
| Fees | 4.50 |
| Investment selection | 5.00 |
| Liquidity | 3.50 |
| Ethics | 3.75 |
| Access | 4.00 |
| Customer support | 3.25 |
| Overall score | 4.08 |
Crowdstreet Pros and Cons
| Pros | Cons |
|
|
Is CrowdStreet Trustworthy?
When reviewing investment platforms, we look at scores 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, bankruptcy, and more.
CrowdStreet has a new BBB page with an A+ rating. But because the page is new, there are no customer reviews or complaints yet.
Keep in mind that the bureau's ratings don't absolutely ensure a company will be reliable or perform well. You may want to read customer reviews or talk to friends or family who have used CrowdStreet to determine whether it's a good fit.
July 2023. Crowdstreet and Nightingale Properties came under scrutiny after $63 million dollars worth of investor funds went missing from two Nightingale commercial real estate properties. The deals apparently had never been finalized. Crowdsteet accuses Nightingale of misappropriating disclosures during its fundraising procedures while using deceptive and fraudulent practices. Nightingale denies these allegations.
Ways to Invest with CrowdStreet
CrowdStreet only offers one account option: An individual investing account. But you can also invest in a self-directed IRA.
CrowdStreet offers three ways to invest in commercial real estate. Here's the breakdown.
Diversified Funds and Vehicles
CrowdStreet's diversified funds and vehicles investment option is best for those who want to spread money across multiple properties. The company gives you access to two types of funds:
- Single-sponsor funds: These funds are led by one real estate firm and are focused on either specific asset classes or particular regions.
- CrowdStreet funds: These funds rely on a broader set of CrowdStreet-managed properties.
CrowdStreet property types include multifamily, retail, office, industrial, land opportunities, and other vehicles provided by real estate companies.
Individual Deals
CrowdStreet's individual deals option is best for those who prefer to directly pick and choose which properties their money goes to. This option not only gives you the power to directly invest in your favorite properties, but it also utilizes an investment team that keeps your deals up to par.
With the platform's Portfolio Center, you can monitor your investment performance and interact with real estate sponsors. (See a complete list of its individual deals here.)
Tailored Portfolios
CrowdStreet also has an option for those who prefer managed accounts; CrowdStreet's tailored portfolios do all the work for you. Just be prepared for the higher minimum account balance — you'll need at least $250,000 to begin.
Tailored portfolios utilize customized investment strategies that align with your particular goals. You can learn more about CrowdStreet's customized portfolios here.
Crowdstreet Fees
Technically you can open a CrowdStreet for free, but most investment options on this platform require at least a $25,000 (up to $250,000 for some offerings) minimum. If you want to take advantage of CrowdStreet's managed portfolios, you'll need a minimum account balance of $250,000.
Tailored portfolios also have annual management fees from 0.25% to 2.50%.
Real estate sponsors may be charged multiple fees ranging from 1% to 5%.
Investors aren't charged fees from CrowdStreet. But sponsors may also charge investors fees (read more about its sponsor fees here).
CrowdStreet — Frequently asked questions (FAQs)
Which is better: Crowdstreet or Fundrise?
When comparing Crowdstreet or Fundrise, the best online brokerage for you depends on your investment style, preferred brokerage account, and investment options. Fundrise is an overall cheaper option and is good for investing in inexpensive real-estate funds, private credit, and venture capital.
How does CrowdStreet make money?
Crowdstreet makes money by charging fees to sponsors, service fees to users, and commissions.
Is CrowdStreet only for accredited investors?
Yes. Crowdstreet only serves accredited investors. Accredited investors are individuals who either have a net worth that exceeds $1 million, or earn $200,000 annually ($300,000 for couples).
What does CrowdStreet charge?
Crowdstreet says its real estate sponsors typically pay distributions every quarter, though this can vary per offering.
What is the minimum investment for Crowdstreet?
CrowdStreet has a minimum requirement of $25,000, so this should be the lowest amount you initially invested through the platform. It's wise to make sure any additional amounts you invest align with your budget and personal finances. Certain features, like tailored features, require much higher minimums.
Compare CrowdStreet
CrowdStreet vs. RealtyMogul
CrowdStreet and RealtyMogul both offer multiple commercial real estate investments, but RealtyMogul is a better choice for non-accredited investors looking for lower account minimums and asset classes like REITs.
And while RealtyMogul offers an auto-invest feature, CrowdStreet's tailored portfolios account could be a better fit for those with at least $250,000 to invest.
Read our RealtyMogul review.
CrowdStreet vs. EquityMultiple
However, EquityMultiple and CrowdStreet both share the accredited-only investor option. The difference between these two platforms is mainly one of fees, account minimums, and investment choices.
You'll pay less to get started at EquityMultiple (since its account minimums range up to $20,000), but you'll need at least $25,000 (up to $250,000 for some offerings) to start investing with CrowdStreet.
Read our EquityMultiple review.
Why You Should Trust Us: Our Methodology for Reviewing CrowdStreet
CrowdStreet real-estate investing app was reviewed using Personal Finance Insider's rating methodology for investing platforms to compare and examine account types, pricing, investment options, and overall customer experience. Platforms are given a rating between 0 and 5.
Real-estate investing platforms generally offer low fees, multiple asset classes, financial tools, and other resources. Some real estate investing platforms are better for more advanced investors or active investors, while others may better suit beginner investors and passive investors. CrowdStreet was evaluated with a focus on how it performed in each category.
Senior Wealth-Building Reporter
Rickie Houston was a senior wealth-building reporter for Business Insider, tasked with covering brokerage products, investment apps, online advisor services, cryptocurrency exchanges, and other wealth-building financial products. Before Insider, Rickie worked as a personal finance writer at SmartAsset, focusing on retirement, investing, taxes, and banking topics. He's contributed to stories published in the Boston Globe, and his work has also been featured in Yahoo News. He graduated from Boston University, where he contributed as a staff writer and sports editor for Boston University News Service.
Junior Investing Reporter
Tessa Campbell is a Junior Investing Reporter for Personal Finance Insider. She reports on investing-related topics like cryptocurrency, the stock market, and retirement savings accounts. She originally joined the PFI team as a Personal Finance Reviews Fellow in 2022. Her love of books, research, crochet, and coffee enriches her day-to-day life.
Jr Compliance Associate
Elias Shaya is a junior compliance associate on the Personal Finance Insider team based in New York City. Personal Finance Insider is Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that readers already know and love. The compliance team's mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up to date and accurate. He joined Insider in February 2022 as a fellow on the compliance team. Elias has a Bachelor of Science in International Business from the CUNY College of Staten Island. Prior to joining Insider, he volunteered at the New York Presbyterian Hospital, where he worked with the biomedical engineering department. In his spare time, Elias enjoys exploring new restaurants, traveling to visit his family in Lebanon, and spending time with friends.
Top Offers From Our Partners
Alliant 1 Year CD Forget the low interest rates most banks offer. Lock in a 5.15% APY for 1 year with a minimum deposit of $1,000. APY= Annual Percentage Yield. The APY is accurate as of the 3/25/2024 dividend declaration date. A $1000.00 minimum deposit is required to open a Regular Alliant Certificate. A $75,000 minimum deposit is required to open an Alliant Jumbo Certificate.
