Online Fundraising and CrowdStreet, Ian Formigle @ CrowdStreet

In this conversation, Ian Formigle, Chief Investment Officer at CrowdStreet, discusses the role of CrowdStreet as an online platform for individuals to invest in commercial real estate projects. He explains how CrowdStreet acts as a broker-dealer and offers investment opportunities in various asset classes and geographies. Ian also highlights the growth of the investment advisor side of CrowdStreet and the different preferences of investors.   He shares the factors that contributed to CrowdStreet's success in the online platform market and the importance of avoiding platform risk. Ian discusses the types of real estate investments that attract investors, such as multifamily properties, and the challenges of investing in niche product types. He also explains the process of finding and vetting sponsors for the platform and the criteria used for screening. Finally, Ian discusses the short-term goals of CrowdStreet, including recovering and growing in 2024.   Takeaways CrowdStreet is an online platform for individuals to invest in commercial real estate projects across the country. CrowdStreet acts as a broker-dealer and offers investment opportunities in various asset classes and geographies. Investors on CrowdStreet can choose between investing individually or through funds managed by CrowdStreet Advisors. Multifamily properties are a popular investment choice on the platform due to their approachability and potential for cash flow. CrowdStreet screens and vets sponsors to ensure they meet the platform's criteria and maintain a long-term relationship based on trust. Chapters 00:00 Introduction and Overview 00:43 What does CrowdStreet do? 01:38 CrowdStreet's Role as a Broker-Dealer 03:00 Growth in Investment Advisor Side 04:07 Surviving and Thriving in the Online Platform Market 05:23 Factors Contributing to CrowdStreet's Success 06:11 Differentiating CrowdStreet's Marketplace 07:02 Avoiding Platform Risk 08:27 Creating a Scalable Investor Experience 09:46 Transitioning from Active to Passive Real Estate Investing 11:58 Understanding Crowdfunding and Regulation 506 14:13 Differentiating CrowdStreet from True Crowdfunding 15:38 Investor Interest in Multifamily Real Estate 17:15 Product Types that Attract Investors 19:22 Product Types that Lack Investor Interest 21:19 Avoiding Niche and Risky Product Types 23:21 Finding and Vetting Sponsors 26:23 Recovering and Growing in 2024 31:10 Short-Term Goals for CrowdStreet --- This podcast is sponsored by Kahr Real Estate Services (https://www.kahrrealestate.com/), a leading provider of in-person and online financial training for the commercial real estate industry. Sign up for our live Excel modeling training class here: https://www.kahrrealestate.com/product/excel-for-real-estate-analysis/ Sign up for our self-paced Case Study course here: https://kahrrealestate.thinkific.com/courses/kahr's-challenge-cases