RealCrowd vs CrowdStreet 2024: Which platform is better?

Jeremy Biberdorf
By: Jeremy Biberdorf
 

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In today’s competitive real estate market, crowdfunding platforms have emerged as powerful tools for democratizing access to investment opportunities. Among the front-runners in this dynamic landscape are RealCrowd and CrowdStreet.

Both platforms have carved a niche for themselves by providing individual investors with a gateway to a diverse range of commercial real estate projects, typically reserved for institutional investors. As you seek the ideal platform to meet your investment goals, it is essential to understand the key differences between these two giants.

RealCrowd is better for:CrowdStreet is better for:
Smaller investorsAccredited investors
DiversificationCommercial real estate
High-risk investmentsLow-risk investments
Multifamily propertiesSingle-tenant properties

In this article, we’ll dive deep into a side-by-side comparison of RealCrowd and CrowdStreet, evaluating their offerings across three critical factors: investment opportunities, platform features, and fees. Our comprehensive analysis will empower you to make an informed decision and chart a course to a more diversified and lucrative real estate investment portfolio.

RealCrowd CrowdStreet
Accreditation Required Required
Property Types Multifamily, retail, office, industrial Commercial real estate, single-tenant
Investment Types Equity, debt, preferred equity Equity, debt, preferred equity, funds
Fees Not Charged to investors No Platform Fees,, 1-2% annual management fee
Minimum Investment $5,000-$25,000 $25,000
Current Promotion

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Modest Money Overall Rating
4.0 rating based on 5 ratings
4.5 rating based on 5 ratings

Factor 1: Investment Opportunities

RealCrowd: Access to Institutional-Quality Deals

  • RealCrowd offers a curated selection of commercial real estate projects
  • RealCrowd platform emphasizes quality over quantity and higher investment minimums
  • CrowdStreet: Diverse Offerings and Lower Minimums
  • CrowdStreet features a wider variety of investment opportunities
  • CrowdStreet’s marketplace offers both debt and equity investments

RealCrowd

RealCrowd distinguishes itself by providing access to institutional-quality commercial real estate deals, which are typically reserved for large investors. The platform carefully curates a selection of investment opportunities, emphasizing quality over quantity. RealCrowd’s offerings primarily focus on equity investments in commercial properties such as office buildings, industrial spaces, retail centers, and multifamily housing.

While the platform’s high standards may lead to a smaller pool of available projects, investors benefit from the potential for more stable and attractive returns. It is important to note that the investment minimums on RealCrowd can be higher than those found on other platforms, reflecting the premium nature of the projects featured.

CrowdStreet

CrowdStreet offers a diverse range of investment opportunities, featuring a larger number of projects compared to RealCrowd. The platform’s marketplace includes a mix of debt and equity investments, catering to investors with varying risk appetites and return expectations. CrowdStreet’s offerings span across various commercial real estate asset classes, such as multifamily, industrial, office, retail, and more.

In addition, CrowdStreet typically has lower investment minimums, making it more accessible for individual investors looking to start or expand their real estate investment portfolios. The platform’s variety of options enables investors to build a diversified portfolio that aligns with their unique financial goals and risk tolerance.

Factor 3: Fees and Pricing Structure

RealCrowd: No Platform Fees for Investors

  • RealCrowd charges no fees to investors for accessing deals, Fees are paid by the project sponsors
  • Investors should still consider other costs associated with each investment
  • CrowdStreet: Transparent Fee Structure with Varied Costs
  • CrowdStreet’s fees vary depending on the investment type

RealCrowd

RealCrowd sets itself apart by not charging investors any fees for accessing deals on its platform. Instead, the fees are paid by the project sponsors, allowing investors to maximize their returns. This fee structure is particularly attractive for individual investors looking to minimize costs associated with their real estate investments. However, it is essential for investors to carefully review each investment opportunity, as there may still be other costs, such as asset management fees or profit-sharing arrangements, associated with each project.

CrowdStreet

CrowdStreet adopts a transparent fee structure, with costs varying depending on the investment type. For individual deals on the marketplace, CrowdStreet typically does not charge investors any fees, as these are usually covered by the project sponsors. However, when investing in managed portfolios or funds, the platform does charge management fees, which can range from 0.5% to 2.5% per year. Investors must take these fees into account when assessing the potential returns of their investments. Additionally, it is crucial to consider other costs that may be associated with each investment, such as property management fees, loan fees, or performance fees.

RealCrowd vs. CrowdStreet: Our Summary

After comparing RealCrowd and CrowdStreet across three critical factors, including investment opportunities, platform features, and fees, we have found CrowdStreet to be the winner for most investors.

CrowdStreet outshines RealCrowd in terms of the variety of investment opportunities available on the platform, offering a diverse range of both debt and equity investments across multiple commercial real estate asset classes. This allows investors to build a more diversified portfolio and find opportunities that align with their unique financial goals and risk tolerance.

In terms of platform features, CrowdStreet provides comprehensive investment analysis tools, a robust marketplace with advanced filtering options, and a wealth of educational resources. These features enable investors to make well-informed decisions and optimize their real estate investment strategies.

Click here to get started with CrowdStreet today.

While both platforms boast attractive fee structures, CrowdStreet’s transparent fee model offers more flexibility depending on the investment type. Although RealCrowd does not charge fees to investors for accessing deals, it’s important to note that the platform’s higher investment minimums may pose a barrier for some individual investors.

Learn More About CrowdStreet


Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He’s a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.