That was the driving question behind CrowdStreet’s inaugural Annual Investor Survey. Since our company’s founding in 2014, we have watched online real estate crowdfunding transform into a multibillion-dollar industry with sustained, year over year growth. Online real estate investing is still in its early days, however, and there’s still more to learn about the individuals whose choices and preferences shape this flourishing, dynamic market.
So, late last year, we sent out a questionnaire to investors active in the CrowdStreet Marketplace. Our aim was to find out more about these individuals’ demographic identities and to determine what factors truly influence an investor’s decision to invest in a particular offering.
The results were informative and, in some cases, surprising. Respondents gave candid, detailed responses to each topic we raised—from ideal property types to sponsor communication and everything in between. We learned that investors demand accountability, expertise, and business acumen from the people and organizations with whom they do business. We also learned why “quality” is the first thing any investor looks for, how experienced our investors really are, why ease of use is as important as the particulars of a listing, and what investors need from In commercial real estate, the sponsor is an individual or company in charge of finding, acquiring and managing the real estate property on behalf of the partnership. The sponsor is usually expected to invest anywhere from 5-20% of the total required equity capital. They are then responsible for raising the remaining funds and acquiring and managing the investment property’s day-to-day... More in order to establish lasting trust.
Our results forecast an immensely positive outlook for 2018—more than 80% of investors expect to invest as much or more than they did last year—but indicate that the bar has been set higher for sponsors.
Want to discuss what the Survey results mean for your organization? If you would like to learn more about our inaugural Investor Survey and discuss how you can apply these insights for better investor acquisition and investment management in 2018 and beyond, please get in touch with us.