Crowd Street Reviews 160

The Crowdstreet event was a wonderful opportunity to personally meet the Crowdstreet team. We thoroughly enjoyed the chance to ask questions and share feedback with Crowdstreet. We were excited to hear Crowdstreet has great plans in the near future for their investors.

The interface between Crowdstreet and Inspira needs to be more seamless. Each time I utilize IRA assets I need to constantly follow up to get the transaction done.

Access to centralized marketplace of CRE sponsors, and investments via structured, normalized deal evaluation approach. Centralized management of paperwork and progress. Over time, marketplace will help weed out shady sponsors, hopefully, and reward ethical sponsors.

CrowdStreet has been my primary source of CRE investment opportunities for almost a decade. They take great care in terms of which deals they bring to the platform, how they are presented, and in orchestrating and centralizing the investment process, follow-up and monitoring. Having everything in one place via CrowdStreet is another huge plus.

Compared with the last event in SF, the venue was uncomfortable. Previously, there was a reception area and then we moved to a larger room for the presentation. We were able to sit and talk notes on the presentation. At Selby's we had to stand and the audio visuals were too small for most to see.

CrowdStreet has brought many great offerings to their platform many brought high returns for me. Brings a layer of protection between investor and sponsor. Highly recommend.

It was good to put faces to names, talk with marketing, new vision discussion, compliance understanding and the company if on its way to the next level.

Be careful to not try and wear too many hats before perfecting the one that is presently on the head.

Company was successful in this presentation - helpful and interesting. No chairs for that long an evening was a mistake.

The worst customer service I have ever experienced. I have invested through this platform for last 2 years. Recently I need to contact the customer service to update my accredited status, the only way to contact them is through email. They are not helpful at all! After I submitted all required documents, I received a confirmation letter. However in the website it still failed to show my current accredited status. I will not invest any money on it any more

Please do not invest with CS, they look to me completely broke. Please do not invest with CS. I am trying to login my account and cannot for more than one week. Nobody is returning the phone or email address. I am locked out my account during the tax period for more than 10 day .
Do not invest with them, they are broke financially.

I invested $25K in the Link Apartments (Post Investment Group). The quarterly reports are incomplete. They were supposed to use the money to refurbish around 200 apartments and now they claim they don't plan on doing this with no explanation as to what they plan to do with the money. No matter what question I ask I never get a direct or complete reply. I feel totally scammed.

I have significant investments in various offerings via Crowdstreet. I am very very disappointed with the working of crowdstreet (CS) and I feel CS is falling really short on its fiduciary duties.

CS has asked Sponsors to submit a quarterly report but most of these quarterly reports are meaningless. They don't provide any relevant information. For e.g. one investment sends their financial details but no explanation on why they are off budget (expect 2M net income, actual is < 0.5M).

Many investments are making capital calls. These capital calls are after we are told everything is going very well. When a capital call is made, I expect CS to ask for completely new set of documents which lays out pay back time period. I have not seen this available or at least not in any easily consumable format. It is buried in new operating docs.

CS is overselling who is tenured sponsor and experienced sponsor. We are expected to take what the sponsor provides at its face value which may not be true.

As it stands today, I would not do any investments via CS.

Be careful. It is not honest. Very bad platforms and investment. Minimum is $25000. I lost them all without any explanation.

I've invested in 8 deals on CrowdStreet starting in 2018. One recent deal that I'm in went south, where a sponsor (Nightingale Properties) stole investors' money and bought watches, real estate, and First Republic call options with it. What did CrowdStreet do? They sent a number of emails claiming that this was not their fault, that they properly did their due diligence. What kind of legal settlement did they offer? Can you guess? They offered to loan the bankrupt entity $5M (<10% of funds that investors lost), which they will fully get back. In other words, they will likely get off Scott-free.

And this all precipitated their move to escrow accounts (um...maybe you guys should have thought of that sooner?). My favorite are the emails saying that they did their due diligence, despite the fact that there were articles in the Wall Street Journal citing the major omissions in the sponsor's performance record. In other words, they knew the sponsor was lying but they said no big deal, these guys are legit. And then they take no responsibility.

AVOID CROWDSTREET!

Hit or miss depending on the deal and sponsor. I started investing on this platform in 2021 after Covid. I evaluated every single deal in 2021 and 2022, and in my opinion, only a handful 4-5 seemed solid, passed my own very serious due diligence process, and the numbers actually made sense. I subsequently only invested in 2 deals. Both sponsor has been communicative outside of the platform which is good. one is underperforming by 2% but still cash flowing, and the other one just took on additional debt to pay for the contruction, so neither are doing great.
As for the recent fiasco with the missing $60mil in the news, I do want to be fair and say that Crowdstreet could have done better with their due diligence but the assets were all terrible: Chicago office buildings? the WORST asset class in one of the worst cities with highest outward migrations. With everything in life, ALWAYS do your own DUE diligence and limit your risks.

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.