Warren Buffett’s Berkshire Hathaway has been consistently blowing other investment firms out of the park for years. Guided by a strict investment philosophy, Berkshire Hathaway manages to pull in market-beating returns for its investors. Still, there’s an asset class that the Omaha-based firm refuses to touch: real estate.
Buffett has repeatedly stated that he only invests in things he has extensive knowledge about, and real estate isn't one of them. This begs the question: What would a real estate investment company built around the same philosophy look like?
It would most likely look a lot like CrowdStreet.
Crowdstreet is essentially a group of commercial real estate experts. They are putting thousands of projects under scrutiny and bringing only a select few to you so you can become a partial owner in a few clicks.
Their performance? Since 2014, when CrowdStreet was founded, the company has outperformed Berkshire Hathaway by a significant margin.
Its realized projects have raked in an internal rate of return (IRR) of 19.2%, while Buffett’s firm recorded a 12.16% IRR in the same time frame. But what’s the catch? If CrowdStreet is so wildly successful, why isn’t everyone copying it?
The truth is that it has been happening. The world’s most well-connected have been receiving reports on real estate projects in up-and-coming neighborhoods for ages. All that was left for them was to cherry-pick the ones they felt were the safest way to double-digit gains.
CrowdStreet changed the game by allowing you to do the same. By signing up for the platform, you can gain free access to the fruits of extensive research done by real estate experts with decades of experience and do the same thing the ultra-wealthy have been doing — cherry-pick the projects that match your unique goals and invest. The options are vast.
But don’t get the wrong impression: There’s work to be done before you turn your savings into shares of high-quality real estate offerings.
Every project card comes with financial documents you can examine. You can also sign up for a free live webinar dedicated to a specific project and ask the developer your questions.
The company has gained the trust of 300,000 investors who invested a total of $4 billion through CrowdStreet.
Here’s what one of them had to say about the company in a Google review:
“I have made investments in 25+ offerings. Extremely pleased that I got to know CS and had opportunities to invest in some of the deals as an individual, which I may not have had exposure to otherwise.
“CS performs detailed due diligence before offerings are made available on the marketplace. For an individual offering, CS does 50%+ work, and as an investor, you have to take care of the remaining 50% to meet your investment risk profile and preferences.
“Highly recommend gaining access to CRE investment opportunities!!!”
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