Review Process

Expertly Reviewed Offerings

Our review process is specifically designed to save our investors time and increase the likelihood of investors finding investment opportunities that meet their requirements.

 

400 Offerings Reviewed

Approximate offerings reviewed by our investments team / month

Less Than 3% Accepted

Offerings accepted on the CrowdStreet marketplace / month

 

Select for the Best

Each sponsors’ investment offering is subjected to a 26-point objective review process by our experienced Investments Team to ensure both the Sponsor and the offering meet our strict marketplace requirements. We’re committed to only publishing institutional-quality commercial real estate investment offerings, while providing the transparency and tools you need to make smart investment decisions.

 

Our Three Step Review Process


Step One

Sponsor Review

Each new Sponsor is subject to the same, objective review process to make sure they meet our marketplace requirements. We evaluate their background and track record to confirm they have demonstrated the capability to provide our investors the highest level of professionalism*.

Sponsor Screening Checklist

FINRA BrokerCheck
Track Record- Spot Audit
Investor Reference Check
Banking Reference Check
Legal Reference Check
Google and LinkedIn Search
Crowd DD Search

 

Thomson Reuters CLEAR Investigation Including…

Business Address Verification
Bankruptcy and Lien Search
Criminal and Lawsuit Records Search
UCC Filings Search
Professional Licenses Search

Sponsor Review Process

  • Background checks on all principals and entities associated with the sponsor.
  • Online news and social media research.
  • Track record and portfolio review.
  • Interviews and reference checks with investors and professional contacts.

*Red flags such as “bad actor” violations or pending material ligation are grounds for immediate rejection.

Investment Review Resources

 


Step Two

Deal Screening

Next, we review each individual deal to make sure that 1) it aligns with the Sponsor’s background and they have a track record of successful execution in that specific asset type. For example, a Sponsor must have demonstrated success in building or operating a self storage facility in order to list a self storage deal on our marketplace. And 2) the deal is compatible with our marketplace investors’ preferences.

Our team asks four key questions . . .

  1. Is the project within a core competency of the sponsor?
  2. Do the materials demonstrate professionalism and conform to industry standards?
  3. Are deal assumptions supported by market data?
  4. Does the project match stated investor preferences in terms of asset type, projected returns and location?

Note: We do not form subjective opinions of the opportunity. Rather we screen offerings according to investor preferences and objective standards.

Our Deal Screening Team reviews:

  • Project Overview
  • Pro Forma
  • Operating Statements
  • Rent Rolls
  • Market Data
  • Lease Comps
  • Sale Comps
  • Renders
  • Appraisals
  • Third Party reports

Step Three

Offering Review

After we have reviewed the sponsor and the offering and deemed them a fit for the marketplace, we review the terms of the specific offering and associated documents and weigh them against our standardized deal terms matrix to ensure the proposed terms of the offering are in line with or exceed market acceptable terms.


Offering Review Criteria

  • Return structure, including profit-sharing waterfalls
  • Entity operating agreement
  • Investor subscription agreement


How We Select and Designate Our Sponsors

To be considered a suitable Sponsor for the CrowdStreet marketplace a Sponsor must meet a core set of requirements.

  1. Sponsors must have a demonstrated track record of managing private investor capital and delivering returns at or above pro forma targets.
  2. They must demonstrate a desire for direct relationships with investors.
  3. They must possess the necessary company infrastructure to service investors for the entire life of the investment period.

Sponsor Designations

We organize Sponsors into 4 unique categories including Emerging, Seasoned, Tenured & Enterprise to make it easy to compare Sponsor across multiple offerings.

Emerging Seasoned Tenured Enterprise
Entity Longevity May be <5 years Must be 5+ years Must be 10+ years Must be 15+ years
Principal Experience 5+ years (at least 2) 10+ years 20+ years 30+ years
Portfolio Activity May be <$100M Must be $100M+ Must be $500M+ Must be $5B+
Additional Required Qualifications
  • Strong leadership experience
  • Experience in proposed asset class and geographic market
  • Demonstrated experience in managing individual investors
  • Higher sponsor co-investment or credit enhancements
  • Existing network of repeat investors
  • Established banking relationships
  • Affiliations with national industry associations such as ULI, NAIOP, CCIM, SIOR or IREM
  • Principals have invested together through multiple cycles
  • Dedicated investor relations and accounting staff
  • National platform
  • Ranked in the top 250 for estimated value of total holdings per Real Capital Analytics