Real estate Investment Comparison

CrowdStreet vs. Lofty

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

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Comparison Table
CrowdStreet
Lofty
Minimum Investment
$25,000
$50
Investment Holding Period
At least 2 years
No Minimum
Early Withdrawal Penalties
Unavailable
None
Rent Payouts
Depends on Project
Daily
Avg. Yearly Returns
10.73% before fees
10.66%
Accessibility
Star Rating - 0.5
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Earning Potential
Star Rating - 0.5
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Investment Liquidity
Star Rating - 0.5
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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
Lofty
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 🏠

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

Comprehensive Documentation 📚

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

Strong Track Record 📜

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

CrowdStreet Cons:

Very High Minimums 🗼

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 🔐

Expected investment time window is at least 5 years

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

Unclear Past Performance 💸

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 📉

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

Lofty

The Bottom Line

Lofty gives investors unprecedented flexibility with their real estate investment with low minimums, no holding period, and almost instant liquidity. Some knowledge is required to get the most of your investments, but they do a good job at providing necessary documentation to help investors make the right choice.

Lofty Pros

No holding period 🙏

Secondary market allows investors to trade holdings with low fees from the day they buy them

Daily rent payments 📅

Investors receive pro-rated rent payments in their account daily

Low minimum investment 🔑

Investors can invest as much as they like as long as it's over $50

Decentralized ownership ⛓️

Investors actually own the underlying property and vote on major property decisions

Open to investors everywhere 🌎

Investors from anywhere can invest in U.S. real estate

Lofty Cons

Some web3 knowledge required ⛓️

While buying new fractions and managing properties is easy, trading with other investors currently requires a crypto wallet (though this will not always be the case)

Investment Tip: Make sure investment options don't put you out of your knowledge depth

Delinquency Risk 🏃

Lofty's focus on high cap rate properties creates greater cash flow but with greater risk for lost rent

Investment Tip: Do your due diligence to property evaluate risk/reward profiles of any investment

No Mobile App 📵

Lofty currently only runs on a browser

Investment Tip: Choose investments that fit your prefered method of monitoring

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CrowdStreet
Review
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Lofty
Review
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Read Full ReviewGo to Lofty.ai