Real estate Investment Comparison

CrowdStreet vs. Groundfloor

Wondering whether CrowdStreet or Groundfloor is a better investment? We put them both to the test to help you compare and decide where to invest your money.

vs.

Comparison Table
CrowdStreet
Groundfloor
Minimum Investment
$25,000
$10
Investment Holding Period
At least 2 years
1-18 months
Early Withdrawal Penalties
Unavailable
Unavailable
Rent Payouts
Depends on Project
N/A
Avg. Yearly Returns
10.73% before fees
10.5%
Accessibility
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Earning Potential
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Investment Liquidity
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
CrowdStreet
Investment Quality Score
3.0
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Groundfloor
Investment Quality Score
4.0
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
CrowdStreet

The Bottom Line

Good option for experienced high net-worth investors, but variable fee structure and high minimums don't work for everyday investors.

CrowdStreet Pros:

Quality Real Estate ๐Ÿ 

Makes it easy to invest in real estate with a well designed platform and low entry costs

Comprehensive Documentation ๐Ÿ“š

Detailed business model and financial support documents, along with profiles on the project principals

Strong Track Record ๐Ÿ“œ

They've been around since 2014 and has acquired billions worth of real estate

โ€

CrowdStreet Cons:

Very High Minimums ๐Ÿ—ผโ€

Most offerings require a $25k commitment, preventing diversification for all but the wealthiest investors

Investment Tip: Make sure investments allow for the diversification your strategy requires

Long Lockup Period ๐Ÿ”

Expected investment time window is at least 5 years

Investment Tip: Have an exit plan before you make an investment

Unclear Past Performance ๐Ÿ’ธ

CrowdStreet reports their past performance before taking fees into account, making it hard to compare to other options on the market

Investment Tip: Make sure you've modelled out your expected investment returns prior to making an investment

Complicated Deal Structures ๐Ÿ“‰

Each offering has a different structure and fee schedule, making them hard to compare for all but the most experienced investors.

Investment Tip: Don't invest if you don't fully understand the deal's terms

Groundfloor

The Bottom Line

Groundfloor provides decent returns in an accessible and easy to use product ideal for first-time real estate investors, but investors looking for higher returns may want to look elsewhere.

Groundfloor Pros:

Real estate knowledge not required ๐Ÿ 

Since Groundfloor offers real estate debt investments, investors needn't know much about real estate investing at all

Low minimums ย ๐Ÿ”‘

Investors can get started from just $10

Short investment terms โฉ

While you can't withdraw an investment early, Groundfloor investment terms are not typically longer than two years

Decent return record ๐Ÿ“œ

Average returns of over 10% is not spectacular, but it's solid

โ€

Groundfloor Cons:

Capped upside ๐Ÿงข

The loans Groundfloor investors finance don't give investors access to a property's cash flow or appreciation upside

Investment Tip: Make sure efforts to reduce risk don't disproportionately reduce potential gains too

Lump sum returns โ›ฐ๏ธ

Most investments operate on deferred payment, meaning investors are only paid out when the loan is paid back in full.

Investment Tip: Make sure you calculate in the timing of investment returns when calculating your long term gains

No opportunity to learn about real estate investing ๐Ÿ“‰

Groundfloor does well to make investing easy, but its debt structure means investors don't leave knowing more about how to earn more leveraging real estate.

Investment Tip: Look for opportunities to compound not only money, but investing skill as well

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CrowdStreet
Review
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Read our comprehensive
Groundfloor
Review
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