Many new investors have questions about the timing and speed of the Marketplace’s investment process. And if you’re used to the public equity markets, we get it–success can be measured in milliseconds.
But becoming a limited partnerA limited partner is a business partner whose liability is limited to the amount of their investment in the company. They are also known as silent partners and their income is considered as passive income by the IRS. On the CrowdStreet marketplace, our investors are limited partners.... More in a CrowdStreet commercial real estate offering takes considerably more time than buying public stock, and there is typically no need to rush your due diligence process or scramble to get your documents in order before submitting an offer.
We have an Evaluation Period, usually about three days long, that starts when a new offering is added to the Marketplace and ends when we start the live sponsor-led webinar. This window gives you time to review the offering’s details and documents, plus indicate your interest in investing. If you indicate your interest in the property, we’ll email you right before the webinar starts so you can tune in. You can submit your offer once the Offer Window opens, 30 minutes into the webinar. We developed this practice to help ensure that you have time to decide if a particular opportunity is right for you and your portfolio.
Soon after this webinar is over, all offers will be pre-approved and all investors will be prompted to begin working on their offer documents. Investors will be given access to funding instructions in the order in which they complete their documents. This means that investors who complete their offer documents the soonest will be granted access to the funding stage, and investors who have not completed their documents soon enough will be moved to a waitlist once the available equity for this offering has been allocated.
It’s important to note that once the Offer Window opens, some deals may receive a large amount of offers due to high investor demand. Some deals may even oversubscribe, which is when the total amount of offers exceeds the equity allocation available for CrowdStreet investors. If this happens, not all investors with approved offers will be accepted into the investment. In order to give yourself the best possible chance of participating in this deal, you should submit your offer as soon as you have made your decision to invest, complete the documentation requirements promptly, then wire your funds at your earliest opportunity. Investments will be finalized by the sponsorIn 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 teams in the order that funds are received from investors.
We always strive to proactively communicate with investors in any situation where there might be any urgency (or benefit) in completing your documents and funding early. Our goal is to give you ample time to complete your due diligence and documents, and ultimately, to fund your investments.
