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A Unique Way To Become A Real Estate Investor

By Philip Bennett | Updated:

You’ve always had a yearning to invest in real estate, but let’s get real: you’re not ready to commit to making a six- or seven-figure investment. And putting on a landlord hat, which means managing property rentals and overseeing the comings and goings of tenants, isn’t your style. But there is a new, affordable way you can invest in commercial real estate without waiting until you’re a millionaire or taking on the role of landlord.

CrowdStreet allows you to invest in commercial real estate properties, located throughout the country if you’re an accredited investor. With an initial contribution of only about $25,000, you could be on your way to reaping the rewards of investing in real estate.

How CrowdStreet Works

With CrowdStreet, you invest in a percentage of physical real estate property, not a company or stocks, and you can choose the individual real estate deals that will work best with your budget, goals, and needs. The CrowdStreet platform allows you to direct your investment in diversified funds or individual properties, or you can choose a professionally managed real estate portfolio.

Depending on the investment option you choose, you could earn regular, ongoing distributions as well as a profit when the property is eventually sold. Since 2014, CrowdStreet has realized 76 deals with an average rate of return of 18.6% after fees have been factored in. In comparison, the S&P index averages a significantly lower return of 10 percent.

Photo: Shutterstock/Freedomz

Benefits Of CrowdStreet Investing

When compared to other real estate crowdfunding companies, CrowdStreet offers more investor autonomy and a wider range of options.

CrowdStreet investor benefits include:

  • No investor fee for accessing the platform or making investments in individual deals and funds offered by sponsors (companies proposing the deals)
  • An easy-to-navigate Marketplace
  • Filters that allow you to view deals with your preferred attributes
  • Various property types
  • Individual projects that allow investing through diverse structures, including portfolios, funds, debt, and equity
  • Additional investment services and products (fee-based) are offered through CrowdStreet Advisors

Keep in mind that some CrowdStreet sponsors charge investor fees, which are clearly defined on the offering detail page as well as deal documents.

Photo: Shutterstock/denis kalinichenk

Creating An Account

You can create a CrowdStreet account by signing in with LinkedIn or Google, or with your name and email. You are required to be an accredited investor, a designation you can acquire by meeting any one of the following criteria:

  • You hold a Series 7, Series 65, or Series 82 license, which is in good standing.
  • Your net worth (not including your home) is at least $1 million, either alone or combined with your spouse’s net worth.
  • Your income for each of the last two years was $200,000, or $300,000 when combined with your spouse’s income, and you expect to earn the same for the year in which you’re applying for a CrowdStreet account.

Creating an account online is quick and straightforward. By investing just a few minutes of your time, you could be on your way to becoming a real estate investor at a level you’ve previously only dreamed of.

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