Share

Investment Fundamentals

Investment Fundamentals

Back

Back

Investing in private equity real estate

In this video Ian Formigle, Crowd Street's Chief Investment Officer, takes a look at the value of investing in private equity real estate and the differences investors need to know between this investment type and others.

Video Transcript:

"By building an online commercial real estate investing platform. Crowd Street is creating a new way for investors to invest. I'm Ian Formigle, and I'm the chief investment officer of Crowd Street. Crowd Street is an online real estate investment platform giving investors across the country direct access to private real estate investments.

We believe that commercial real estate can offer investors a great way to help them diversify their portfolio. What drives the value of commercial real estate can be different than what drives the value of the stock market, and that's because commercial real estate's value can be tied to its rents and rent escalations can be accelerated during periods of high inflation.

Generally speaking, the faster a property can adjust its rents upwards the better it can maintain pace with inflation. It is possible to earn an annual yield yet at the end of the year report a taxable loss. And that's largely due to the fact that commercial real estate in its private form is taxed as a limited partnership.

The offerings on Crowd Street's marketplace are private equity investments. Typically speaking, the value of that particular offering is often times driven more by what's going on at the property level than what's being reported in the news.

Conversely, public equities are traded daily on national exchanges, and that means that they can be subject to the whims of public perception. Investors often think that real estate investment trusts or REITs and commercial real estate private equity are the same thing, and the answer is they're not.

REITs were formed in 1960 by Congress as a way to take a portfolio of properties and turn them into a company which could then turn around and sell shares to investors. So what we see in REITs, a lot of times is that they're publicly traded and the most important consideration for investors to understand is that when they invest into a publicly traded REIT, they're investing into the entire company, not just the portfolio properties but the management team itself.

Commercial real estate private equity is what we call more of a pure play investing in the equity itself. In that particular deal you're often times hiring third party managers but you're not investing in the management team.

When investing in single family residences, in many regards we would consider this hands on investing. For most people this means buying a rental home. You're managing the property, you're fixing it up, you're dealing with tenants. Investing in single family homes, as a landlord can be profitable. But in many regards, we would say that you earn your return.

In commercial real estate it's a more passive approach. You're entrusting your money to a company that is sponsoring the project who will go out and execute the business plan on your behalf to hopefully deliver a return.

At Crowd Street, we believe that education is paramount to the path of becoming a sophisticated real estate investor. You can find a wealth of information on our website www.Crowd Street.com."


Don’t miss these

Don’t miss these

Don’t miss these

Don’t miss these

Investment Fundamentals

Exploring 401(k) and Private Markets: New Possibilities Ahead

Jul 28, 2025

Private markets may soon appear in 401(k) plans. Explore what these possibilities could mean for investors and how Crowd Street empowers informed choices.

Read now

Investment Fundamentals

Exploring 401(k) and Private Markets: New Possibilities Ahead

Jul 28, 2025

Private markets may soon appear in 401(k) plans. Explore what these possibilities could mean for investors and how Crowd Street empowers informed choices.

Read now

Investment Fundamentals

Making Sense of CRE Valuations in Real Estate Deals

Jul 28, 2025

Not all CRE valuations are equal. Learn the difference between broker opinions and appraisals, plus key questions to ask when evaluating property value.

Read now

Investment Fundamentals

Making Sense of CRE Valuations in Real Estate Deals

Jul 28, 2025

Not all CRE valuations are equal. Learn the difference between broker opinions and appraisals, plus key questions to ask when evaluating property value.

Read now

Investment Fundamentals

Crowd Street's Private Equity Guide: Understanding the Basics

Jun 25, 2025

Discover how private equity works, some key risk factors, and ways individual investors can explore this space with Crowd Street's private equity guide.

Read now

Investment Fundamentals

Crowd Street's Private Equity Guide: Understanding the Basics

Jun 25, 2025

Discover how private equity works, some key risk factors, and ways individual investors can explore this space with Crowd Street's private equity guide.

Read now

Take your portfolio beyond the index.

Request Access

Take your portfolio beyond the index.

Request Access

Take your portfolio beyond the index.

Request Access

Take your portfolio beyond the index.

Request Access

CrowdStreet, Inc. (“Crowd Street”) offers investment opportunities and financial services on this website.

Broker dealer services provided in connection with an investment are offered through CrowdStreet Capital LLC (“Crowd Street Capital”), a registered broker dealer, Member of FINRA/SIPC. Information on all FINRA registered representatives can be found on FINRA’s BrokerCheck. Additional information is available in Crowd Street Capital's Client Relationship Summary (Form CRS).

Advisory services are offered through CrowdStreet Advisors, LLC (“Crowd Street Advisors”), a wholly-owned subsidiary of Crowd Street and a federally registered investment adviser. Crowd Street Advisors provides investment advisory services exclusively to private funds and does not otherwise provide investment advisory services to the Crowd Street Marketplace or its users. Additional information is available in Crowd Street Advisors’ Form ADV.

Crowd Street and its affiliates do not endorse any of the opportunities that appear on this website. Investment opportunities available through Crowd Street are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Diversification does not guarantee investment returns and does not eliminate the risk of loss. All investors should consider their individual factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Private placements are illiquid investments, in that they cannot be easily sold or exchanged for cash, and are intended for investors who do not need a liquid investment.

Performance information presented on this website has not been audited or verified by a third party. By accessing the Crowd Street Marketplace, you agree to be bound by its Terms of UsePrivacy Policy, and any other policies posted on this website. The Crowd Street Marketplace is only intended for accredited investors.
For more information, see Legal Documents and Important Disclosures.

Ⓒ 2025 Crowd Street Ltd. All Rights Reserved

CrowdStreet, Inc. (“Crowd Street”) offers investment opportunities and financial services on this website.

Broker dealer services provided in connection with an investment are offered through CrowdStreet Capital LLC (“Crowd Street Capital”), a registered broker dealer, Member of FINRA/SIPC. Information on all FINRA registered representatives can be found on FINRA’s BrokerCheck. Additional information is available in Crowd Street Capital's Client Relationship Summary (Form CRS).

Advisory services are offered through CrowdStreet Advisors, LLC (“Crowd Street Advisors”), a wholly-owned subsidiary of Crowd Street and a federally registered investment adviser. Crowd Street Advisors provides investment advisory services exclusively to private funds and does not otherwise provide investment advisory services to the Crowd Street Marketplace or its users. Additional information is available in Crowd Street Advisors’ Form ADV.

Crowd Street and its affiliates do not endorse any of the opportunities that appear on this website. Investment opportunities available through Crowd Street are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Diversification does not guarantee investment returns and does not eliminate the risk of loss. All investors should consider their individual factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Private placements are illiquid investments, in that they cannot be easily sold or exchanged for cash, and are intended for investors who do not need a liquid investment.

Performance information presented on this website has not been audited or verified by a third party. By accessing the Crowd Street Marketplace, you agree to be bound by its Terms of UsePrivacy Policy, and any other policies posted on this website. The Crowd Street Marketplace is only intended for accredited investors.
For more information, see Legal Documents and Important Disclosures.

Ⓒ 2025 Crowd Street Ltd. All Rights Reserved

CrowdStreet, Inc. (“Crowd Street”) offers investment opportunities and financial services on this website.

Broker dealer services provided in connection with an investment are offered through CrowdStreet Capital LLC (“Crowd Street Capital”), a registered broker dealer, Member of FINRA/SIPC. Information on all FINRA registered representatives can be found on FINRA’s BrokerCheck. Additional information is available in Crowd Street Capital's Client Relationship Summary (Form CRS).

Advisory services are offered through CrowdStreet Advisors, LLC (“Crowd Street Advisors”), a wholly-owned subsidiary of Crowd Street and a federally registered investment adviser. Crowd Street Advisors provides investment advisory services exclusively to private funds and does not otherwise provide investment advisory services to the Crowd Street Marketplace or its users. Additional information is available in Crowd Street Advisors’ Form ADV.

Crowd Street and its affiliates do not endorse any of the opportunities that appear on this website. Investment opportunities available through Crowd Street are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Diversification does not guarantee investment returns and does not eliminate the risk of loss. All investors should consider their individual factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Private placements are illiquid investments, in that they cannot be easily sold or exchanged for cash, and are intended for investors who do not need a liquid investment.

Performance information presented on this website has not been audited or verified by a third party. By accessing the Crowd Street Marketplace, you agree to be bound by its Terms of UsePrivacy Policy, and any other policies posted on this website. The Crowd Street Marketplace is only intended for accredited investors.
For more information, see Legal Documents and Important Disclosures.

Ⓒ 2025 Crowd Street Ltd. All Rights Reserved

CrowdStreet, Inc. (“Crowd Street”) offers investment opportunities and financial services on this website.

Broker dealer services provided in connection with an investment are offered through CrowdStreet Capital LLC (“Crowd Street Capital”), a registered broker dealer, Member of FINRA/SIPC. Information on all FINRA registered representatives can be found on FINRA’s BrokerCheck. Additional information is available in Crowd Street Capital's Client Relationship Summary (Form CRS).

Advisory services are offered through CrowdStreet Advisors, LLC (“Crowd Street Advisors”), a wholly-owned subsidiary of Crowd Street and a federally registered investment adviser. Crowd Street Advisors provides investment advisory services exclusively to private funds and does not otherwise provide investment advisory services to the Crowd Street Marketplace or its users. Additional information is available in Crowd Street Advisors’ Form ADV.

Crowd Street and its affiliates do not endorse any of the opportunities that appear on this website. Investment opportunities available through Crowd Street are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Diversification does not guarantee investment returns and does not eliminate the risk of loss. All investors should consider their individual factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Private placements are illiquid investments, in that they cannot be easily sold or exchanged for cash, and are intended for investors who do not need a liquid investment.

Performance information presented on this website has not been audited or verified by a third party. By accessing the Crowd Street Marketplace, you agree to be bound by its Terms of UsePrivacy Policy, and any other policies posted on this website. The Crowd Street Marketplace is only intended for accredited investors.
For more information, see Legal Documents and Important Disclosures.

Ⓒ 2025 Crowd Street Ltd. All Rights Reserved