My large doubts on the sustained success of crowdfunding sites

[Henry Lazerow]

In my eyes all these crowd funding platforms have a TERRIBLE risk to reward ratio. When you invest in 2-4 unit real estate you have a fixed mortgage and can ride out the market ups and downs, you can also just invest in SPY take a 4% withdrawal and average 8% while holding through downturns. Where as many of these crowdfunding platforms instead will see permanant loss of capital. Let's take Rich Uncle as an example. They touted conservative leverage max 50% and their NAV wen't from $10 to .37 cents after all their high fees and a few failed buildings due to Covid this forced liquidation of investor money creating permanant loss of investor capital. 

Streitwise has had their NAV stay nearly exactly the same during a bull market. This is not sustainable and any normalization (doesn't even need to fall just staying flat or a slower appreciation) in the market will likely cause a decrease of their NAV. The 8% dividend won't save you if NAV crashes from a decline. The fact NAV has stayed nearly the same also makes me seriously question how it is being calculated as the NAV of any real estate should not have stayed the same over the last few years, there dividends have also stayed nearly the same too consistent to be how they are paying out all gains. 

Roofstock and some of these other sites the properties they are pitching are complete BS numbers for cap rate, etc. I saw a bunch on the south side of Chicago with 20% inflated prices and cap rates that assume the tenants consistently pay rent and don't factor in the increased wear and tear of D class tenants. Interesting platform though I will say and a cool idea if was better audited for quality.