CrowdStreet employs a three step approach when it comes to reviewing and approving offerings for the Marketplace. Below is a brief outline of this process but if you would like to understand the process in greater detail, we recommend watching our Marketplace Screening Process video, which is located in the Learn section of our website.
1. Our first step is Sponsor Vetting: We evaluate the commercial real estate developer or operator’s background and track record to ensure that the sponsor has a demonstrated capability to provide investors the highest degree of professionalism. This includes deep background checks, reference checks and a review of a host of sponsor materials. Sponsors that pass the initial vetting process are assigned one of three sponsor designations:
At this point, they are moved on to the second step, which is Deal Screening.
2. During the second step, we evaluate the sponsor’s proposed asset or fund to ensure that it aligns with the Sponsors’ background and with Marketplace investor preferences. I lead the Deal Screening and have final say over approval or rejection of deals at this step. Deals that are approved move on to our third step, which is Offering Terms Review.
3. During our third and final step, we review the terms of the proposed offering and associated documents against our “standard investor deal terms criteria” matrix and provide the results to the sponsor to either adjust to comply or reject any offering that does not match the criteria.For instance, all Sponsors must co-invest and state their co-investment amount for equity offerings.
Deals that pass the third and final step in the process are approved for the CrowdStreet Marketplace.