Category: Investing

Investing in real estate has always been a popular way to grow wealth. But, it can be hard for everyday people to get started. CrowdStreet aims to change that. It is a platform that allows individuals to invest in commercial real estate. In this review, we will explore CrowdStreet in 2024. We will look at its features, benefits, risks, and how it compares to other platforms.

What is CrowdStreet?

CrowdStreet is a real estate investment platform. It was founded in 2013. Its goal is to make commercial real estate investing accessible to more people. The platform connects investors with real estate developers and operators. This allows individuals to invest in commercial real estate projects without needing a lot of money.

How Does CrowdStreet Work?

CrowdStreet operates as a crowdfunding platform. Here’s how it works:

1. Registration: To start, you need to create an account on CrowdStreet. The process is straightforward and takes a few minutes.
2. Browse Deals: Once registered, you can browse the available investment opportunities. Each listing provides detailed information about the project, including the location, type of property, expected returns, and the developer’s background.
3. Invest: If you find a project that interests you, you can invest in it. The minimum investment amount varies, but it typically starts at $25,000.
4. Monitor: After investing, you can monitor the progress of your investments through the CrowdStreet platform. You will receive updates on the project’s status and performance.

Key Features of CrowdStreet

CrowdStreet offers several features that make it an attractive option for real estate investors:

1. Diverse Investment Opportunities: CrowdStreet offers a wide range of commercial real estate projects. This includes office buildings, apartments, retail spaces, and industrial properties. This diversity allows investors to spread their risk across different types of properties.
2. Detailed Information: Each investment listing on CrowdStreet provides comprehensive information. This includes financial projections, market analysis, and the developer’s track record. This transparency helps investors make informed decisions.
3. Investor Relations: CrowdStreet has a dedicated investor relations team. They are available to answer questions and provide support throughout the investment process.
4. Educational Resources: CrowdStreet offers a wealth of educational resources. These include webinars, articles, and guides on real estate investing. This is especially helpful for new investors looking to learn more about the industry.
5. Strong Track Record: CrowdStreet has a strong track record of successful projects. Many investors have reported positive returns on their investments.

Benefits of Investing with CrowdStreet

There are several benefits to investing with CrowdStreet:

1. Access to High-Quality Deals: CrowdStreet vets all the deals listed on its platform. This ensures that only high-quality projects are available to investors.
2. Diversification: Investing in commercial real estate can help diversify your investment portfolio. This can reduce risk and improve overall returns.
3. Passive Income: Many of the projects on CrowdStreet generate passive income through rental payments. This can provide a steady stream of income for investors.
4. Potential for High Returns: Real estate can offer higher returns compared to other types of investments. This is especially true for commercial real estate, which can generate significant rental income and appreciation.
5. Direct Ownership: When you invest through CrowdStreet, you often receive a direct ownership stake in the property. This can provide additional benefits, such as tax advantages.

Risks of Investing with CrowdStreet

While there are many benefits to investing with CrowdStreet, it is important to be aware of the risks:

1. Illiquidity: Real estate investments are generally illiquid. This means that it can be difficult to sell your investment and access your money quickly.
2. Market Risk: The real estate market can be volatile. Changes in the economy, interest rates, and local market conditions can impact the value of your investment.
3. Property Management: The success of a real estate investment often depends on the quality of property management. Poor management can lead to lower returns and increased risk.
4. Project Delays: Real estate projects can experience delays due to various factors, such as construction issues or regulatory approvals. This can impact the timing of returns.
5. Minimum Investment Requirement: The minimum investment amount on CrowdStreet is relatively high, typically starting at $25,000. This may be a barrier for some investors.

How Does CrowdStreet Compare to Other Platforms?

CrowdStreet is one of several real estate crowdfunding platforms. Here’s how it compares to some of its competitors:

1. Fundrise: Fundrise offers a lower minimum investment amount, starting at $500. This makes it more accessible to new investors. However, Fundrise focuses more on residential properties, while CrowdStreet specializes in commercial real estate.
2. RealtyMogul: RealtyMogul also offers a range of commercial real estate investments. It has a lower minimum investment amount, starting at $5,000. RealtyMogul provides both equity and debt investments, while CrowdStreet focuses primarily on equity investments.
3. YieldStreet: YieldStreet offers a variety of alternative investments, including real estate, legal finance, and art. It has a higher minimum investment amount, starting at $10,000. YieldStreet provides more diversification across different asset classes compared to CrowdStreet.

Who Should Invest with CrowdStreet?

CrowdStreet is best suited for accredited investors. These are individuals who meet certain income or net worth requirements. Specifically, you should have an annual income of at least $200,000 ($300,000 for joint income) or a net worth of over $1 million, excluding your primary residence.

CrowdStreet is ideal for investors who:

• Want to diversify their portfolio with commercial real estate.
• Are looking for passive income opportunities.
• Have a long-term investment horizon.
• Are comfortable with the risks associated with real estate investing.

Getting Started with CrowdStreet

If you are interested in investing with CrowdStreet, here are the steps to get started:

1. Create an Account: Visit the CrowdStreet website and create an account. You will need to provide some basic information and verify your identity.
2. Complete Your Investor Profile: Once your account is set up, complete your investor profile. This includes providing information about your investment goals, risk tolerance, and financial situation.
3. Browse Investment Opportunities: Browse the available investment opportunities on the CrowdStreet marketplace. Take your time to review the detailed information provided for each project.
4. Make an Investment: When you find a project that meets your criteria, make an investment. You will need to transfer funds to the platform to complete the investment process.
5. Monitor Your Investments: After investing, you can monitor the progress of your investments through the CrowdStreet platform. You will receive regular updates and reports on the performance of your investments.

Conclusion

CrowdStreet is a robust platform for investing in commercial real estate. It offers a diverse range of investment opportunities, detailed information, and strong investor support. While there are risks involved, the potential for high returns and passive income makes it an attractive option for accredited investors. If you meet the qualifications and are looking to diversify your investment portfolio, CrowdStreet is worth considering.

Always remember to do your research and consider your risk tolerance before making any investment decisions. Happy investing!

In today’s digital age, investing in real estate has become more accessible than ever before, thanks to platforms like RealtyMogul. Whether you’re a seasoned investor or just starting out, RealtyMogul offers opportunities to participate in real estate ventures across the United States. This review will delve into what RealtyMogul offers, how it works, its pros and cons, and whether it’s the right choice for you.

The Importance Of This RealtyMogul Review

Review is an effective way to learn about something thoroughly. So, reading the RealtyMogul review is essential if you’re considering investing smartly. It’s like a guide that helps you understand the platform better, where it came from, what it’s all about, and where it’s headed. Learning about RealtyMogul’s basic ideas and why it started shows its reliability and trustworthiness.

The RealtyMogul review talks about how This Company wants to make investing in real estate something everyone can do, not just about money stuff. This info is crucial for people wanting a platform that matches their values. The review is like a helpful tool, letting investors determine if RealtyMogul’s plans match theirs, making it easier to make intelligent choices in real estate.

Historical Background of RealtyMogul

RealtyMogul is an online platform that allows investors to pool their money together to invest in various types of real estate properties. Founded in 2013, it aims to democratize real estate investing by providing access to commercial real estate and private placements that were traditionally available only to institutional investors or high-net-worth individuals.

How RealtyMogul Works

• Investment Options: RealtyMogul offers two primary investment options:

  • REITs (Real Estate Investment Trusts): These are portfolios of properties managed by professionals. Investors buy shares of the REIT, which owns and manages income-generating real estate.
  • Private Placements: These are direct investments in individual properties, such as office buildings, multifamily residences, or retail spaces. Investors can choose specific properties to invest in.

• Investment Process:

  • Signing Up: To get started, users need to create an account on the RealtyMogul website.
  • Browsing Investments: Once registered, investors can browse through available investment opportunities.
  • Due Diligence: Each investment opportunity comes with detailed information, including property details, financial projections, and potential risks.
  • Investing: Investors can invest in properties by committing a minimum amount as specified for each opportunity.

• Management and Returns:

  • Passive Income: Investors earn returns through rental income and property appreciation, which are distributed periodically.
  • Management: RealtyMogul handles property management and other operational aspects, reducing the hands-on involvement required from investors.

Legitimacy and Regulation

Pros of RealtyMogul

• Diversification: Investors can diversify their portfolio by investing in different types of properties across various locations.
• Accessibility: It allows individuals to invest in real estate with lower minimum investments compared to traditional methods.
• Professional Management: Properties are managed by experienced professionals, reducing the burden on individual investors.
• Transparency: RealtyMogul provides comprehensive information about each investment opportunity, helping investors make informed decisions.
• Potential for Passive Income: Investors can earn regular income through rental payments and potential property appreciation.

Cons of RealtyMogul

• Liquidity: Real estate investments on RealtyMogul are generally illiquid, meaning it may be challenging to sell investments quickly.
• Risk Factors: As with any investment, real estate carries risks such as market fluctuations, tenant turnover, and economic downturns.
• Fees: RealtyMogul charges fees for managing investments, which can affect overall returns.
• Limited Control: Investors have limited control over property management decisions, relying on RealtyMogul’s management team.

Is RealtyMogul Right for You?

RealtyMogul is suitable for investors looking to diversify their portfolios with real estate assets without the complexities of direct property management. It’s ideal for those seeking passive income and potential long-term capital appreciation. However, investors should carefully consider the risks involved, understand their investment goals, and assess whether the platform aligns with their financial strategy.

Conclusion

In conclusion, RealtyMogul offers a compelling opportunity for individuals to invest in real estate through an accessible online platform. With its range of investment options, professional management, and potential for passive income, it caters to both novice and experienced investors alike. However, like any investment, it’s essential to conduct thorough research, understand the risks, and consult with financial advisors if needed before committing funds.

Whether you’re looking to diversify your investment portfolio or explore new avenues in real estate, RealtyMogul presents a modern approach to real estate investing that could align with your financial goals.

In the past, it was nearly impossible for everyday people to invest in private equity. To get in on venture capital (VC) deals, you usually need immense capital and the right connections. And even if you find platforms that support equity-based investing, they’re usually reserved for accredited investors.

But with SeedInvest, every investor can get in on some private equity action. With a $1,000 minimum investment amount and in-depth vetting process, this crowdfunding site provides access to quality startups you can add to your portfolio.

However, startup investing is incredibly risky. Our SeedInvest review is covering these risks, the pros and cons, and how to decide if this crowdfunding platform is worth using.

Start today

What is Seedinvest?

SeedInvest is an equity crowdfunding company that began in 2012 with the goal of making private equity investments more accessible to everyday investors. Since then, the platform has grown to over 600,000 investors and helped 250+ companies raise over $410 million.

Historically, investing in startups has required working in venture capital and having an immense amount of funds at your disposal. But SeedInvest has a $1,000 minimum investment requirement for many deals, making the world of private equity significantly more beginner-friendly.

Who is SeedInvest for?

If you want to invest in vetted startups at the same terms as major VCs and angel investors, SeedInvest is for you.

Furthermore, the platform has investing options for both accredited and non-accredited investors, which isn’t common for private equity. Non-accredited investors can face lower total investment limits than accredited investors that vary by deal, but SeedInvest is still more accessible than many alternative investment platforms.

Note that SeedInvest says it supports investors from around the world but depending on your local laws, you might not be able to invest with the platform. For example, Canadians aren’t eligible to invest through SeedInvest currently, so it might not be available in your country.

How does SeedInvest work?

Startups pitch SeedInvest for the opportunity to raise funds. This lets companies access a pool of accredited investors, angel investors, family offices, venture capital firms, and institutional investors.

According to its website, companies have to pass a vetting and due dilligence stage to get listed on SeedInvest. Only 1% or so of companies make it, so the companies you find as an investor are the top-tier startups out there. And there are two different ways you can start investing.

Invest in individual startups

The SeedInvest website lets you browse available startups you can invest in. At the time of writing, there are seven opportunities and one upcoming startup.

What’s nice about SeedInvest is that you find startups from a variety of sectors. For example, here are some of the current startup investing opportunities on the platform.

• Cytonics Corporation: A biopharmaceutical company that’s developing medications for osteoarthritis and other inflammatory conditions.
• Drink Monday: A beverage brand that makes alcohol-free cocktails.
• Fresh Bellies: A snack brand that creates healthy, savory snacks that are culturally-inspired.
• iPost: A marketing automation company that focuses on franchises, associations, and publishers.
• WAGE: A digital job networking platform for gig workers and their employers.

When you click on a listing, you can dive into additional information about the company to help with due diligence. For example, you see the amount raised, minimum investment requirement, and pre-money valuation. You can also read the terms sheet and information about previous fundraising, the pitch deck, founding team, and how proceeds will be used.

Of course, doing your own due diligence also makes sense since SeedInvest takes a cut from raises, so it has an interest in promoting these companies as best as possible. This means reading news reports, press releases, and doing as much investigative research as possible.

But at the end of the day, SeedInvest presents plenty of interesting startups to invest in. And its rigorous vetting process helps ensure you’re only considering top candidates.

Invest on autopilot

SeedInvest’s most unique feature is its Auto Invest feature that lets you create a diverse portfolio of startups. It’s almost like a robo-advisor, just for private equity, which isn’t something you can find too easily.

Here’s how Auto Invest from SeedInvest works:

1. 1.Minimum deposit: Start with a $1,000 minimum deposit.
2. 2.Invest: Automatically invest in startups when they meet certain thresholds for their raise ($250,000 if under Regulation D/CF or $2 million if under Regulation A+). There’s a minimum investment amount per-investment of $200, so your starting deposit can theoretically invest in five different companies with this starting amount.
3. 3.Allocate Funds: SeedInvest lets you set-up predetermined rules for how much you want to invest in new companies.
4. 4.Grow Your Portfolio: Steadily invest in a diverse portfolio of startups the longer you use Auto Invest.

You can pause or restart Auto Invest as well. And if there’s a company you want to invest more money in, you can always invest through the main deal page. There aren’t fees for using Auto Invest. However, you pay the standard SeedInvest 2% processing fee, capped up to $300 per trade.

SeedInvest fees and pricing

Investors pay a 2% transaction fee on SeedInvest that’s capped at $300. This fee is returned if you invest in a company that doesn’t end up completing its raise. And you don’t pay management fees, carried interest, or administrative fees, which is different from most crowdfunding platforms.

The reason investors don’t pay other fees is because SeedInvest charges startups a 7.5% cash fee of the value of securities purchased in a raise and a 5% convertible note or equity fee. For example, if a company raises $200,000 on SeedInvest on a $10 million cap crowd note, SeedInvest earns $15,000 in cash fees and $10,000 of the crowd cap note.

Historical performance

Since its inception, SeedInvest has helped over 250 startups raise capital. And if you read its case study page, you find some major success stories like Heliogen, which raised $1.6 million on SeedInvest in 2017 at a $20 million valuation and ended up going public in 2021 at a $2 billion valuation. There’s also plenty of smaller companies that didn’t reach unicorn status but still generated significant returns.

And when you look at some of the other investors in these companies, you find names like Bill Gates, Mark Cuban, and numerous VC funds.

In short, the companies that list on SeedInvest are within the very best startups out there. But as SeedInvest explains on its investor risk page, startup investing doesn’t guarantee returns. In fact, there are significant risks, including complete loss of capital, dilution, and complete business failure.

Alternative asset investing like investing in startups is more exciting than sticking with stocks or ETFs. But you need to understand your risk tolerance and what percentage of your portfolio you want to potentially invest in startup equity. And never invest money you can’t afford to lose since this is an incredibly risky investment, even if companies seem solid.

Liquidity

Your investments through SeedInvest are highly-illiquid investments. Startups are privately held companies, so you can’t sell your shares through a public stock exchange. And SeedInvest doesn’t have a secondary marketplace for selling shares either. Plus, companies don’t have a requirement to pay dividends, so you might not see returns for a significant period of time until the company potentially goes public or buys back shares.

In other words, don’t invest money into SeedInvest that you might need in the short term. This is a long-term investing strategy that is both risky and highly illiquid.

How to contact SeedInvest

You can contact SeedInvest by emailing contactus@seedinvest.com. There’s also a live chat widget on its website once you create an account and login. Customer support is available from 9am to 6pm EST, Monday through Friday.

How to open an account

You open an account by entering your full name and email. You also have to confirm you’re an accredited investor. The two most common ways to achieve accreditation status include:

• Having a net worth of at least $1 million (excluding your primary residence).
• Having an earned income of at least $200,000 (or $300,000 with a spouse) for the previous two years and a similar income expectation for the current year.

Investors also verify their account to unlock the full platform. This means entering your address, phone number, date of birth, and information about your employment status. Your funding activity is placed on hold until SeedInvest’s compliance team verifies the information you submit.

Best alternatives

We like SeedInvest as a startup investing platform because of its vetting process and low fees for investors. But it’s far from the only startup-focused crowdfunding site out there. And depending on your goals, several alternatives could be better options.

OurCrowd

Best for: Due diligence

Get started with OurCrowd

Like SeedInvest, OurCrowd is another crowdfunding platform that lets you invest in vetted, fast-growing startups. OurCrowd is also available to investors from around the world. And the unique selling point is that OurCrowd lets you invest in numerous startup funds so you can diversify your portfolio more easily.

You have to be an accredited investor to sign up, so keep this in mind. There’s also a $10,000 investing minimum for individual deals; 10x higher than SeedInvest’s minimum. But you get more selection, and OurCrowd has a strict vetting process and only accepts around 1% to 2% of applicants.

Note that OurCrowd charges investors variable management and administrative fees plus carried interest on profits. You can read our OurCrowd review for the complete breakdown.

YieldStreet

Best For: Alternative asset selection

Get started with YieldStreet

Yieldstreet is an alternative assets investing platform that sometimes includes offerings like pre-IPO investments. It also lets members invest in asset classes like artwork, debt, real estate, and crypto. There’s a $2,500 entry-level fund that’s available to non-accredited investors. Other offerings require accreditation and usually have a $10,000 to $15,000 minimum investment requirement.

We like Yieldstreet because it provides so many different asset classes to consider. If you want equity plus numerous other asset classes to move away from traditional investments, it could be the perfect platform.

The platform has seen a 9.71% net annualized return (IRR) since inception in 2014. Annual management fees vary by investment but can reach up to 2.5%, so this is one downside versus SeedInvest.

Mainvest

Best For: Small business investing

Get started with Mainvest

While Mainvest provides debt-based investing opportunities rather than equity-based investments, it’s still an excellent alternative to SeedInvest for diversifying your portfolio.

With Mainvest, you help fund growing small businesses across the United States. In return, you receive regular interest payments from businesses until your loan is paid back and then some. Mainvest targets 10% to 25% returns for investors and only has a $100 minimum investment requirement.

The types of businesses you find on the platform typically includes breweries, cafes, restaurants, and other small local businesses. These aren’t startups looking to reach a unicorn valuation. But you can still use Mainvest to diversify your portfolio and create a new income stream.

The bottom line

If you’re looking for quality startups to invest in, SeedInvest is one of the best crowdfunding platforms out there. It’s hard to find options that are available to non-accredited investors. Plus, the $1,000 minimum for many offerings means almost anyone can start investing. When you add in innovative features like Auto Invest, it’s clear why SeedInvest is so popular.

Just remember: private equity investments are both extremely risky and illiquid. You should never invest money you need in the short term or money you can’t afford to lose. And if you need guidance, don’t hesitate to ask a financial advisor for more personalized advice.