What to expect after you make an investment

Once you make an investment on the Marketplace, you’ll be able to monitor the performance of that project from your Investor Room. Sponsors will use your Investor Room(s) to communicate with you on a regular basis, including posting quarterly reports, key tax documents, and more.

 

 

 

 

 

 

 

Holding sponsors accountable post-investment

We believe transparency and communication is key to building and maintaining trust between sponsors and investors. As part of our commitment to investors, our contract with sponsors requires they maintain open communication channels with investors throughout the lifecycle of your investment. If sponsors fail to adhere to the following commitments, they won’t be eligible to bring a new investment opportunity to the Marketplace.

We ask sponsors to commit to being responsive, reliable, and honest with investors in their deals.

We ask sponsors to:
Upload quarterly review documents within 60 days of the end-of-quarter, ideally within 45 days
Produce and upload tax documents in a timely manner
Post distribution amounts and send distribution payments based on the project’s performance (at the sponsor’s discretion)

As an investor, you can help facilitate the accurate and timely flow of information and payments between yourself and a sponsor.

We ask that you:
Maintain accurate account information and distribution payment instructions
Thoroughly review any information/documentation provided by the sponsor
Give the sponsor up to 60 days to report each quarter before asking for additional information

Tracking the CrowdStreet portfolio

CrowdStreet actively tracks which sponsors meet these requirements and follows up with them regularly. We also encourage sponsors to proactively over-communicate when there are any major events impacting a project’s performance and to reply to your questions within 24-48 business hours whenever possible.
In addition to tracking which sponsors meet the above requirements, our team reviews the performance of a sponsor’s past offerings, including their reporting compliance, if they have a new investment opportunity they want to bring to the Marketplace. This performance analysis is incorporated into the Investment team’s review of the new deal and helps determine if this is a sponsor we want to work with again. If the Investments team approves a repeat sponsor’s new deal, the review is made available to prospective investors on the new deal’s detail page.
 

Our team analyzes market data and trends—including lessons learned from our 95 fully realized deals— and shares that accumulated knowledge with our Investments team, who use this information to update our Investment Thesis and influence how future deals are evaluated. This feedback loop helps ensure we continue to bring top-quality deals to the Marketplace and are reacting to the market accordingly.

Our team also keeps an eye on our fully funded offerings that have transitioned to the post-investment stage, evaluating and delving deeper into specific individual deals on an as-needed basis. This analysis could be triggered by:

  • Severe underperformance of a deal, meaning the investment is considered “at-risk”
  • A lack of sponsor transparency or failure to comply with our investor reporting requirements
  • A realization event—including a sale or refinance—that impacts our overall Marketplace Performance track record
  • Any other issues or misunderstandings between a sponsor and the investors

Intervening on deals: What CrowdStreet can and cannot do

We strive to only work with well-respected sponsors and bring institutional-quality investments to the Marketplace, but it is important to understand that our involvement is limited in the post-investment stage. CrowdStreet offers investors the ability to invest directly into real estate projects, meaning your capital goes directly to the sponsor behind the project. However, it also means that we have limited abilities when it comes to intervening and resolving issues when they arise.Like all investments, commercial real estate investing has inherent risk.
Please take note that:

 

  • We are not a party to the agreement made between investors and sponsors
  • We don’t have decision-making powers regarding the execution of the business plan
  • We don’t have the power or ability to directly impact or influence the operations and financial performance of a project
 

Frequently Asked Questions

  Does CrowdStreet have an asset management team?

No. CrowdStreet does not have an Asset Management team. The CrowdStreet Marketplace connects investors directly with the sponsors behind a deal and as such we do not have any decision-making powers or the ability to influence the execution of a sponsor’s business plan.

Given the long-term nature of real estate investing, slight, temporary underperformance against pro forma and minor deviations from the business plan are common. However, should a deal be severely underperforming, CrowdStreet will monitor sponsor communications and occasionally intervene to facilitate interactions with investors. We want to ensure the sponsor provides regular and transparent updates to investors, explains any deviations from the original business plan, outlines what is being done to address the situation, and clearly communicates what it means for you. While CrowdStreet does our best to hold every sponsor accountable for providing updates and responding to investor questions, we can’t impact the business plan or outcome of the offering.

For the latest details regarding your investment’s performance, please visit your Investor Room. Under the ‘Documents’ section, you will find all reporting uploaded directly by the sponsor. You can also ask questions directly to the sponsor via the “Ask A Question” button in your investor room.

Please note that the CrowdStreet teams work with and are limited to the same investor reports available at your disposal. In most cases, we do not have additional performance information besides what has been made available by the sponsor in your Investor Room.

Have any other questions? Check out our Help Center.

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