UBTI = Unrelated Business Taxable Income
As most or all of the investments will be in offerings that employ debt financing, there is likely to be some UBTI exposure for CrowdStreet investors.
Broadly speaking, most ordinary income trade or business activity will be subject to UBTI, so a developer that treats the income as ordinary trade or business on their tax return will ultimately pass through the UBTI exposure to the investor in the offering which will flow down to the individual investors.
We encourage you to consult your CPA for more information.
Please see these related articles in our Resources Page.