Is CrowdStreet The Best Fractional Real Estate Investing Company?

Real estate crowdfunding has democratized property investment, opening doors that were once reserved primarily for the elite. Platforms like CrowdStreet bridge individual investors with real estate professionals, eliminating the complexities of direct property ownership.

While every investment has its risks, diversifying into real estate can offer robust returns. Because of this, CrowdStreet caters to accredited investors, offering access to select, potentially high-yielding projects.

If you’re considering diversifying your investment portfolio, CrowdStreet merits a closer examination, and this CrowdStreet review will do just that. Let’s answer the question, is CrowdStreet the best fractional Real Estate investing company, once and for all.
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What Is CrowdStreet?

CrowdStreet isn’t just another investment platform. Founded in 2014 in Portland, it’s carved a niche by focusing on commercial real estate. In simple terms, it’s like a bridge connecting everyday investors with seasoned real estate project developers. Since its inception, they’ve brokered over 732 deals, translating to a whopping $3.9 billion pooled in from its vast community.

What stands out? Their partnerships. Big players like Greystar and Harbor Group International have teamed up with CrowdStreet to raise capital. Now, while you can directly invest in individual properties, which by the way, have a track record of solid performance, it’s worth noting they come with their own set of risks.

Here’s something that will help CrowdStreet investors sleep a little better at night: CrowdStreet doesn’t just let any developer onto its platform. They undergo a rigorous background check, ensuring you’re only presented with top-tier real estate opportunities. But, like all investments, it’s wise to do your own homework.

Whether you fancy diving deep into individual projects or just want to spread your money across diverse real estate funds, CrowdStreet has got your back.

What Is Fractional Real Estate Investing?

There are two primary approaches in fractional real estate investing:

REITs and Funds: Real Estate Investment Trusts (REITs) pool funds to invest in real estate assets. While equity REITs directly own properties, aiming for long-term growth, debt REITs focus on cash flow from property-related debts, offering dividends. Although publicly-traded REITs offer trading flexibility, private ones can be less liquid. Not all these pooled funds are REITs; some bypass the REIT dividend requirement for reinvesting profits and achieving growth.

Fractional Ownership: Investors can buy shares in individual properties, earning a share from rental income and potential sale profits. Some platforms also offer opportunities to resell these shares.

Features

Before we can decide if CrowdStreet is the best fractional Real Estate investing company, we must take a look into its most powerful features.

• Detailed Investment Webinars: CrowdStreet offers in-depth video webinars for every individual investment opportunity. These allow investors to grasp the specifics of the project and decide if it aligns with their portfolio. The webinars are available live, enabling real-time queries to project sponsors, or can be accessed later as recorded sessions.
• Investment Thesis Insight: This feature provides a lens into CrowdStreet’s evaluation process for potential deals. It provides a perspective on their stance on different asset classes, from hospitality to student housing, and geographical regions within the real estate realm. Their “StreetBeats” video series offers timely updates on market trends and shifts in the commercial real estate landscape.
• Educational Support: Apart from introductory guides, CrowdStreet provides a rich set of educational materials. This includes insightful articles and tutorial videos, covering topics like “How to review an investment offering” and deep dives into understanding metrics like internal rate of return.
• Comprehensive Vetting: Every project and its associated developer undergo a meticulous vetting process. This three-step process involves:
  • Sponsor Review: An in-depth analysis of the firm, examining their track record and ensuring their credibility.
  • Deal Review: A thorough examination of the proposed project, ensuring alignment with investor preferences.
  • Document Review: An assessment of all legal documents for consistency and accuracy.
• Varied Investment Opportunities: CrowdStreet opens doors to a wide spectrum of real estate investments, spanning from commercial to mixed-use properties. This diversity lets investors customize their portfolio based on their risk appetite.
• Investment Guidance: The platform equips investors with a robust set of resources. From understanding the basics of project evaluation to deciphering the nuances of returns, CrowdStreet offers articles and videos to guide the way.

Is CrowdStreet The Best Fractional Real Estate Investing Company?

Deciding on the top fractional real estate investment platform is subjective and hinges on individual needs. CrowdStreet has garnered attention as a leading choice, particularly for its pioneering method that offers users a handpicked selection of top-tier real estate ventures.

Those with accredited investor status have the flexibility to invest in individual properties, opt for a diversified fund, or even engage with CrowdStreet Advisors for managed accounts. The platform seems particularly suited for those who can commit their capital for extended periods, those with a higher risk appetite, and those who are diligent in conducting their own comprehensive research before investing.

If this sounds like you, or you would like to learn more about CrowdStreet’s offerings, Click Here to get started today.

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