Sam & others - Any thoughts about CrowdStreet Blended Portfolio ?
What's your take on CrowdStreet in general ? After the RealtyShares mishap, I'm a little worried about real estate crowd funding.
What should we consider, before investing with such crowdfunding platforms ?
I have been considering investing in the CS blended portfolio. Did you end up investing?
I have been fairly active in real estate syndication investing (crowdstreet, real crowd and direct).
I like picking deals on crowdstreet but I would not do their blended portfolio personally.
I probably invest in about 5% of the deals I look at and I rarely invest in development deals or hospitality deals and lately alot of Crowdstreet deals are development or hospitality deals. Personally I dont think its a good idea to take the shotgun approach to investing in crowdfunding. I think its better to find the best sponsors and the best deals. Its more time consuming but better in my view.
In short I like crowdstreet (especially compared to the SPV model crowdfunding sites like realtymogul and realtyshares but I dont want a small piece of all of their deals.
Agreed with poster above. If you have say 200k (arbitrary #) or above to invest, pick targeted deals that meet your risk tolerance, time frame, and objective. If all you have is 25k to invest, it makes more sense to do the Blended Portfolio if you value safety via diversification. I personally want to own the real estate and sponsor relationship directly and dont want to be tied to a SPV.
This is something I liked about PeerStreet. They have automated investing. So you pick the objectives for what you are willing to invest in, and they'll buy you in to deals. You can then put very small investments in a lot of deals to spread your risk out. I have 7 deals and one that is in default. So you can still very much expect defaults and issues, but with much, much smaller investments. However, with that one default, if we don't recover the funds, then it'll still wipe out the gains from the other 7 deals.