CrowdStreet Review 2024: Pros, Cons and How It Compares

CrowdStreet will appeal to accredited investors who want to add commercial real estate to their portfolio.
Tiffany Lam-Balfour
Andrea Coombes
By Andrea Coombes and  Tiffany Lam-Balfour 
Edited by Erica Corbin

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.


The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Our Take

3.5

NerdWallet rating 

The bottom line:

CrowdStreet provides a convenient platform for accredited investors to add commercial real estate projects to their portfolio. But investors should do their own due diligence and be prepared to leave their money locked up for years at a time.

CrowdStreet
Fees
0.50% to 2.5%
for funds; project fees vary
Account minimum
$25,000
Promotion
None
no promotion available at this time
Learn more

on CrowdStreet's website

Pros & Cons

Pros

  • Access to commercial real estate deals.

  • Potential to earn passive income.

  • Easy-to-use website.

Cons

  • Highly illiquid investments.

  • Available only to accredited investors.

Compare to Similar Brokers

Current Product

NerdWallet rating 

3.5

/5
NerdWallet rating 

4.7

/5
NerdWallet rating 

4.5

/5
NerdWallet rating 

5.0

/5

Fees 

0.50% to 2.5%

for funds; project fees vary

Fees 

0% - 2.5%

management fees; other fees apply.

Fees 

0.5% - 1.5%

other fees apply

Fees 

1% to 1.25%

management fees; other fees may apply

Account minimum 

$25,000

Account minimum 

$10,000

Account minimum 

$1,000

Account minimum 

$5,000

Promotion 

None

no promotion available at this time

Promotion 

None

no promotion available at this time

Promotion 

Earn a Special 1% Return Boost

on Your First Investment

Promotion 

None

no promotion available at this time

Learn more

on CrowdStreet's website

Learn more

on Yieldstreet's website

Learn more

on EquityMultiple's website

Learn more

on RealtyMogul's website

Get more smart money moves — straight to your inbox

Become a NerdWallet member, and we’ll send you tailored articles we think you’ll love.

Full Review

CrowdStreet makes it easy to invest in commercial real estate projects nationwide by pairing individual investors with project developers.

Developers are reviewed by CrowdStreet — including background and reference checks — which helps narrow the field of commercial real estate opportunities for investors who may not have the time or inclination to do that first round of review on their own. Still, investors should do their own due diligence on the developer as well as the project to make sure they understand the potential risks.

As an investor, you can pick individual properties (in which case you’ll interact directly with the project sponsor) or buy into CrowdStreet backed funds, which, like mutual funds, are composed of a diverse lineup of real estate projects.

The minimum investment varies by offering and is set by the sponsor. Most of the individual projects and real estate funds available on the CrowdStreet site require a minimum investment of $25,000.

CrowdStreet is best for:

  • Accredited investors.

  • Investors willing to let their money sit for years.

  • Risk-tolerant investors.

  • Investors willing to do their own due diligence.

CrowdStreet at a glance

Investor requirements

Accredited investors only.

Investment minimum

Can vary depending on offering, but generally $25,000.

Redemption options

No redemption program.

Fees

  • No fee to register for platform.

  • Individual projects: Varies by project (see project page on CrowdStreet website for details).

  • CrowdStreet funds: 0.5% to 2.5% management fee on an annual basis. Some funds have additional investor servicing fees, acquisition fees, marketing fees or performance fees.

Investment selection

One of the largest online commercial real estate marketplaces. From 5 to 15 private equity investment opportunities live on its marketplace, including both single-asset projects and funds.

Website transparency

This is our judgement of how easy it is to find critical information on the CrowdStreet website, including platform fees, account minimum and redemption options (if offered).

Investment transparency

This is our judgement of how easy it is to find critical information about investment offerings, including investment fees, risks, risk mitigation efforts, the process for vetting investments and how investment returns are distributed to investors.

Customer support options

Email support. Automated live chat feature on website can answer some questions, but routinely directs to email.

CrowdStreet features you should know

In-depth research: Individual investment offerings on CrowdStreet’s website include a detailed video webinar about the project, which is a useful way for investors to learn more about the specific details of the development and to ensure that the investment belongs in their portfolio. You can listen live to each webinar and submit questions to the project sponsor, or watch the recorded video later.

Crowdstreet's Investment Thesis feature gives investors insight into how potential deals are being evaluated along with Crowdstreet's outlook on various asset classes (such as hospitality, industrial, medical office, multifamily, office, retail, self storage, senior housing and student housing) and geographical locations within the real estate industry.

Investing guidance: Crowdstreet maintains a large library of educational content, including insights from its chief investment officer, local and regional market analysis and coverage of economic trends. The platform also offers instructional videos and articles about general investing topics, such as “How to review an investment offering” and “Understanding internal rate of return." And we found the website's help center informative, with answers to most general questions investors might have about the platform.

Accredited investors only: Currently, all of CrowdStreet’s investments are available solely to accredited investors. These investors have a net worth, excluding the value of their primary residence, of at least $1 million, or annual income in each of the past two years of at least $200,000 if single or $300,000 if married. If you’re not an accredited investor, check out our list of real estate platforms, which has a section for nonaccredited investors.

Complex investments: CrowdStreet’s investment offerings are complicated commercial real estate deals, and investors should make sure this is the right investment for them before they invest their money. Here are some caveats to keep in mind:

  • Each CrowdStreet project is different, and each requires your own due diligence, over and above CrowdStreet’s review process, to make sure the project fits in your overall portfolio.

  • These real estate investments are illiquid, so be prepared to leave your money invested for a few years (see each project page for details on its target investment period, which typically ranges from three to five years).

  • Some projects may start paying a return early, while others may take years.

  • Some projects may fail to fund, and your money will be returned to you.

  • As with any investment, you may lose money. CrowdStreet posts results for deals that have now closed, so you can see past performance results. But remember that past results don't predict future performance.

» Compare before investing: Best real estate crowdfunding platforms

Is CrowdStreet right for you?

There’s no doubt that adding real estate to your portfolio can be a smart move — real estate is a useful way to diversify your overall investment portfolio. The easiest way to do that is with a publicly traded real estate investment trust, or REIT, which you can trade like a stock, or a REIT mutual fund or REIT ETF. REITs are available to all investors and have lower minimums than CrowdStreet’s projects.

» Read more about how to invest in real estate

Plus, there’s a market for publicly traded REITs — that is, they’re a liquid investment you can easily get out of — and a REIT mutual fund is a one-stop shop for a diversified real-estate investment.

But it’s also true that the prices of shares of publicly traded REITs tend to move somewhat in tandem with the overall stock market. Investing in properties directly, through a site such as CrowdStreet, may offer better diversification. When REITs drop in price, the values of real estate developments could hold steady or even rise.

If you’re looking for that extra level of diversification, you have time to research the projects available on CrowdStreet, you can afford to let your money sit for a few years, and you’re an accredited investor, then the site offers a useful and easy way to add commercial real estate projects to your investment portfolio.

How do we review real estate platforms?

NerdWallet’s comprehensive review process evaluates and ranks companies that allow U.S. customers to invest in real estate, primarily through non-traded REITs or private equity. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.

We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across eight factors. The final output produces star ratings from poor (one star) to excellent (five stars).

For more details about the categories considered when rating brokers and our process, read our full methodology.


Note: CrowdStreet also offers private managed account services through its registered investment advisor, CrowdStreet Advisors, LLC. That investment advisor and its service, however, are not the subject of this review.

This post contains an affiliate link. CrowdStreet was not involved in the creation of, and has not endorsed, this post. However, if you register with CrowdStreet through the affiliate link, NerdWallet may earn a referral fee at no cost to you.

Learn more

on CrowdStreet's website