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.
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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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