Review Time
I invested as an LP through CrowdStreet and learned an important lesson about platform risk. While the property ultimately sold, LP investors were common equity, last in the capital stack, and bore the full downside from leverage, litigation, and post-close escrows.
CrowdStreet earns platform and servicing fees regardless of investor outcome, while LPs have no control over execution, legal exposure, or exit timing. The deal functioned more like venture equity than traditional real estate, which may not be obvious to newer investors.
Not alleging wrongdoing — just encouraging prospective investors to fully understand incentives, capital stack position, and worst-case scenarios before investing via a platform.
They don't properly vet the companies presenting offers on their platform. I've lost the original equity invested on 2 out of 4 deals and am uncertain how the last two will close out. These are high risk deals and Crowdstreet really just cares about collecting their commission.
They don't properly vet the companies presenting offers on their platform. I've lost the original equity invested on 2 out of 4 deals and am uncertain how the last two will close out. These are high risk deals and Crowdstreet really just cares about collecting their commission.
Guy like me sees this AI trading ad, puts in $1,200 first. Grows fast, cashes $300 out fine. Confidence maxed sent $6,000, then $9,000 more, total hit $25,000-ish. Screen said $41,000 in profits. Went for big withdrawal bam, blocked forever, site gone. Crushed. Started digging for help and reached 𝐕𝐞𝐫𝐢 𝐓𝐫𝐚𝐢𝐥 𝐢𝐧𝐭𝐞𝐥 they traced it and got my $25,000 principal back plus the fake profits. Feels like winning the lottery after losing everything.
If you'd like to lose your investment money, this is the place to go. I invested in 4 Crowd Street multi-family projects about 3 years ago and 2 of them have completely collapsed and lost 100% of my money. While I recognize this time period has not been great for CRE, one would expect small or no returns but not complete loss of invested capital - especially twice! Stay far away from this site and find a REIT or an ETF.
Several years ago, I posted an honest two-star Google review of this company based on my investment experience. This got a lot of likes and periodic notifications from Google that it was helpful to thousands of people. Then one day, the review disappeared. I then re-posted the same review, and this cycle repeated itself - after a lot of likes and high ranking of the post, it got deleted, along with all others that provided a rating of less than 4 or 5 stars. (I can be under no illusions as to who was responsible for these deletions - reviews of other businesses that I wrote on Google some 10 years ago are still active.) CrowdStreet apparently is unable to delete reviews from TrustPilot, and on seeing the proportion of 1- and 2-star ratings, the truth is self-evident - investing on CrowdStreet is very high risk and once you invest, you're on your own, with no support from CrowdSreet if things go wrong. More than one General Partner privately shared with me that platforms like this are funding sources of last resort, so the poor quality of these deals should not be too surprising. Crowdfunding platforms make their money off listing fees, so when deals go south (as a large number have), unlike their investors, they have no skin in the game. All they can do is try to cover up bad press, which is simply investors who have been burned who are sharing their experience as a warning to others. I recently heard that they shut down investor forums on their site - clearly they experienced heartburn in seeing all the complaints and feared that it would negatively impact fundraising. Rather than posting some boilerplate response to this, CrowdStreet should explain why they're doing everything in their power to silence investors who have lost money in deals on their platform, and what actual steps they have taken to tighten their selectivity and improve their vetting of GPs.
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Crowd Street is a leading platform for direct-access private market investing. The company offers a carefully selected marketplace of alternative investment opportunities that have historically only been available to a small group of people. In addition to providing advanced tools, research, and insights to help investors confidently explore these exclusive opportunities, Crowd Street is also building a member experience rooted in trust and experience – working to further bridge the gap between investment opportunities and our members' financial ambitions. Learn more at https://www.crowdstreet.com/.
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