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Crowdstreet investing experience
Hi everyone, as a new investor working a full time job with two little kids, wondering if any of you have experience investing through Crowdstreet and what your thoughts on that are? Thank you all so much!
@Tatiana Podel I just funded for my first investment through the portal as well.
As a follow up I have received first two dividend payments. They were exactly 5% on an annual basis. Sponsor uploads financials around the 15th of the month and a few paragraphs on what is going on with the project.
do you mind sharing updates? I'm interested also.
@Lisa Paolella everything exactly as planned so far on the multi family value add. I also recently updated in a student housing value add and a Marriot hotel in Ga. all through CrowdStreet.
Know what you are getting into. If you want cash flow make sure you invest in a project that pays dividends right away. In the case of the student housing there is no dividends until refi at year 2 then a large portion of principal is returned then divideds after that. For the Marriot hotel it’s more of a business, so the dividends are large (up to 16%) but the refi and/or sale only planned to return capital, so most of the profits come to you via monthly dividends.
My point is, look at the different plans and see what you want. If you are already receiving an income and don’t need monthly cash flow you may prefer all the appreciation at the end. If you want your money back faster look for a refi. If you want cash flow heavy look for that. They have lots of choices.
@Account Closed Thanks for sharing your experience. I've been sitting on the sidelines with Crowdstreet watching their projects and sometimes attending webinars. Couple of questions
- Are you investing as yourself or through a LLC? Any comments on either approach?
- Taxes: If I invest as an individual, would I get the tax benefits of investing directly in RE (owning a SFH for e.g.) or are the dividends taxed as ordinary income?
@Vrushal Dongre you can invest as an entity (LLC) but I just went in as an individual. Either way you will get a K-1 issued.
For the tax issue please refer to CPA...but, my experience is that the passive losses will only offset passive gains. So if you have no other passive gains you will not be able to have a passive loss reduce your income. It will simply carryover to later years until you have passive activity gains to offset. So if you think hey I’ll put in $100k and get this huge passive write off it simply is not true. This is misunderstood by most and put out as gospel by idiots like Grant Cardone.
Thanks @Account Closed!
Just got 2nd distribution from Hotel deal on CrowdStreet. $20k qtly Dividend. Not bad! On track for around $80k dividend for year on a $200k investment. Wife's exact words this morning were "can we do more of those please".
