Crowd StreetReviews of crowdstreet.com

Ho hum another crowd street loss in the books. this time a mere 60 pct loss..

Some of their proven sponsors are failing clients. We lost $10K with a very proven sponsor and we can blame that on COVID if we want to. They lack solid management and direction it appears to me. Just my personal experiences and I have roughly $4 million is RE equites. I believe other investors will be losing money as well right now with “proven” sponsors due to headwinds we are facing in the economy. The RE deals just are not attractive and CS as a company seemingly lacks direction to pivot and face these challenges. This platform is not as shiny as one may believe and I own 100 doors on my own. I found another group called SNS capital who is not on CS or any other site who seems more prudent and disciplined and I have enjoyed the investment. My advice is to be wary looking to the future of the CS site.

Crowdstreet had inadequate diligence procedures in place when they started off, resulting in at least one inept sponsor listing on their platform. That sponsor is Tapestry which is in the senior housing business. A number of their ventures have gone south and they came up with various excuses other than the real reason - they didn't know what they were doing. On top of that they have recently gone radio silent. I will never again invest in anything on this platform.

Updated review from my initial 4/3/2019 review, now that I've had 4 years as a Crowdstreet investor. I began investing with CS in early 2019. Over an 8 month period, I chose what I felt was a diverse array of 7 different investments, in different geos, and different sectors. I then decided to take a pause and see how the first 7 deals went before investing further in CS offerings. Thankfully I did not get myself in any deeper than that, because as of today, only 2 of those investments have been realized at a profit. The other 5 are either far behind schedule, or appear to be on their way to bankruptcy. The lesson I've learned from CrowdStreet is that it's not for me. When it comes to real estate investing, I'm now sticking with the simplicity, liquidity and relative safety of REITs (I do not have any interest in buying property and being a landlord or paying a property manager - too much focused risk, just like CS, IMHO). The returns on REITs might not be as impressive as what CS advertises, but at least I don't have to worry I'll lose my entire investment - or MORE if I'm dumb enough to agree to a capital call. In my opinion, it does no good to offer a 2x multiple, and 20%+ IRR if it's never realized and you lose your entire investment. Following are my CS investment experiences, with property type, and an A-F letter grade for each based on overall sponsor performance: • Senior Housing (F): Failure to pay any cashflow, deal is likely going bankrupt. Communications aren't great and they seem to have only 1 person in their entire company who responds, so when she's out, crickets. Deal went upside down early on and just keep getting worse. • Senior Housing (F): 4 year deal now at least 6 years due to Covid. Cashflow hasn't started yet but so far, sponsor communicates consistently, even through Covid challenges and has been responsive. Update as of 1/23/23 - deal has gone down the drain. After issuing a capital call last year, then subsequently telling us everything was on track, sponsor suddenly now is trying to sell early and claims they've had a "surprise" potential need for $1M+ new capital. We'll be lucky to get out with our original investments. • Office (B): Paid cashflow distributions, realized 4-year deal early in 2 years (with lower IRR of course). Communications were OK, though sometimes took multiple requests to get a response. Would have been an (A) otherwise. • Multifamily (C): Paid some cashflow distributions, then stopped (understandably) due to Covid, and realized 3 year deal in 2. Continually moved payment ETA and had to be chased around for that info each time their ETA comes and goes. Would have been a (B) if they were proactively communicating, and meeting comittments. • Industrial (D): Paid cashflow distributions first 3 years, then stopped. Have failed to pay any capital distributions since year one. Communications have been inconsistent, though with persistence, someone eventually responds. Was to be a 3 year deal and is now at least 5-6 years not due to Covid, but due to environmental issues with the property. Lead point of contact at sponsor seems to have disappeared. They're trying to dispose of property but cannot seem to find buyers. • Hospitality (C): They've been fairly responsive, have provided financials, and have (understandably) had to make changes to navigate Covid. Distributions ceased year 1 of 4 and haven't started back up yet. Occupancies are rebounding but they're still playing catch up from Covid. • Mixed Use (F): In the beginning, they were fairly responsive. Then Covid hit and changes (understandably) had to be made. Then after the build-out was completed, occupancies began to increase and we all got the weekly updates telling us they were receiving the majority of their rents, I began asking when the cash distributions would start back up. And that's when they became unresponsive. What was to be a 6 year deal now appears it will take at least 9 years to recoup my investment. Common denominator seems to be sponsors who aren't responsive to communications requests, and don't proactively send updates, or do so consistently. Covid threw a wrench into everyone's plans, but Covid can only be used as an excuse for so long, and for so much of these failed, failing or flailing investments before you have to start to wonder if the sponsor is the problem. Also doesn't explain unresponsiveness. Other common denominator is that CrowdStreet is nowhere to be found as these deals begin to unravel, and they have been NO help in resolving issues that arise with sponsors, IMHO. CS does a great job getting your money, but after you've invested, they are effectively NO help whatsoever when problems arise and you'll be on your own with the sponsor, so you MUST be sure that your sponsor is solid. REITs are MUCH simpler.

we have Invested in Multiple offering. Last one they brought OC-Ventures.com for XChicago student Housing who is Fraudulent, Could not close Deal, and refuses to Refund money back since August 2022. Crowdstreet of No help even though they didn't do due diligence and brought them to platform. No phone number for customer service, when you write email, They reply but don't answer your questions. One has to take legal action on Crowdstreet and sponsor. As long as everything goes o.k. you are ok, but when things go wrong , you are on your own . NO HELP FROM CROWDSTREET. They are in for their 2 % every year from your investment. I would give 0 star, If there was choice. Remember This is not about Investment went sour due to real estate market, This is simple Fraud, Investors money taken on crowdstreet platform, No Investment done and No refund.

As a 4 year investor, I won't be making any more investments with Crowdstreet. Latest issue... a sponsor I invested with mailed a check to my previous mailing address. Check was then cashed (not by me). Sponsor doesn't respond to emails requesting info, failed to update their records with correct mailing address, claimed they were sending a new check, and now 6 weeks later, tells me it the original check was cashed fraudulently and there's nothing they can do. Crowdstreet needs to help facilitate payments and communication, but the only response from Crowdstreet when there are issues is a shoulder shrug and "not our problem" attitude. Sorry Crowdstreet - but this is your problem.

The biggest problem in crowdstreet is funding the money to the investment company. They ask us to send funds by ACH or wire. First of any only businesses can initiate ACH transaction and so if you are a personal investor, this is out of question. The next option is wire the funds and so every time you invest, you have to spend $40. They (Crowdstreet) charges anywhere from 1-2% fees from the other company and they don't provide even basic funding mechanism for investors to fund the required money. They will not even respond to your queries since every time you call their 800 number, you leave a voicemail and no one answers back. Even by email they don't answer your questions. Their customer support is deplorable. The platform concept is good but for personal investors, the entire experience is really really horrendous. Tried it out again today to attend their zoom call. Their folks never take our questions and answer them - Have proof of all submitted questions. They say you are pre-approved and by the time you are e-signing the docs in about 20 minutes, you get email indicated you are waitlisted - This is complete BS and waste of people's time. They have no mechanism of controlling or notifying the interested subscribers. It's a matter of time other competing crowd sourcing platforms come to play to stop the hegemony of such horrible investing platforms Update : Few weeks after I posted the above review, two of the crowdstreet's executives including customer executive had a long hour meeting to discuss the above feedback. I was told they would look into this and revert back but no one ever did. I was also surprised to learn that they themselves did not know that non-business (personal Trusts or anyone) can't initiate ACH transactions through any financial institution - which is exactly what I mentioned above. In terms of the bidding process, they were going to do changes to streamline this as well. Update : 4th July, 2021 While I have recently read about the new streamlined process of ensuring oversubscription is handled appropriately, I have yet to try out the new system. I asked them about ACH support and yet again disappointed, they still do not support this and ask investors to either wire funds (which cost $35-$40 for any domestic outgoing wire) or initiate ACH transaction (please remember you can only this IF YOU HAVE A BUSINESS ACCOUNT - without which THIS is not possible at all - no matter who says what). All other competing sites - realty mogul, upside avenue, equity multiple, fundrise (More like a REIT) and many others DOES NOT HAVE THIS PROBLEM. They merely take your bank name and automate the ACH transaction directly from the receiving investment party (rather than you - the sender having to initiate this). Very disappointed that crowdstreet continues to NOT SUPPORT this very basic mechanism for funding money.

In my experience, CrowdStreet oversells their due diligence effort/support and expected returns and then under delivers on both. If an investment goes south, they then basically don't provide any support whatsoever and basically say "you are on your own, we are just a platform." After making 8 diversified investments (1 medical, 2 apartments, 3 hotels, 2 assisted living), 2 are performing according to plan, 2 are under construction, and 4 are underperforming, with 1 of these being a complete write-off Based on my experience, you are much better investing with FundRise, Realty Mogul, Realty Shares, Peer Street, or more traditional REITs than CrowdStreet.