I've been an active investor all along and recently embarked on passive investing since my family needs are catching up. I looked at this site crowdstreet which has sponsors promoting Large multfamily/sing family funds and so forth. The deals seem long-term and returns more than 8% and irr greater than 14-15%. Anyone has experience with crowdstreet deals? The deals are quite opposite to what u see in pol. Pol has short term loans and sponsor has no immediate cash flow.
Suggest you check out http://www.therealestatecrowdfundingreview.com. I have had good success in RE crowdfunding, but it does require a substantial amount of research and due diligence to select the right investments.
Thanks @Ed Matson .
@Rao Mu , What you are talking about are equity deals, versus the debt deals that you see on POL. And there are actually many sites that have equity deals.
What I recommend is before drilling down into one particular site, get an overview of all the possible options that fit your portfolio needs. After that, then drill down into the site details of the top three or four sides in that area. If you have any specific questions, let me know.
You have to pull apart the deal from the platform. CrowdStreet (and the other platforms) does some due diligence up front, but they aren't the ones putting the deal together or managing it. It's sort of like asking if you should marry someone based on the fact that you found them on Match.com.
That being said, I do like CrowdStreet a lot. What stands out is their investor relations software. In my opinion it's the best out there and that's really where these platforms should be focusing.
These deals are very different than POL. There's a good chance you won't see any money for a while. IRR numbers are basically guesstimates and they can be manipulated... especially if you invest in a fund that doesn't put your money to work right away. Anyways, that's my 2 cents. Good luck.
Further to Ian's comment, you really need to do your own due diligence and read the fine print when looking at a specific deal offered by Crowdstreet or another platform. The crowd platforms vet the deals but the fact is, they can and do make mistakes at times when researching the sponsor background, explaining fee structure, etc etc. I've invested w/Crowdstreet and like them so far but I'm also aware that it's up to me to really drill down into the details and do some of my own homework before investing. If you can spare the time I've also found that watching/listening to the webinars that the sites usually produce on each deal is worthwhile in order to get a flavor for the sponsor in person (so to speak) and see how he/she fields questions from potential investors.
@Mark Robertson has made a few investments on the platform and may have good comments to add
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