Assess their risks, liquidity, investments, returns, timeframes and other terms
Invest in commercial real estate projects
Invest in collectible assets
Minimum investment amounts on CrowdStreet start at $25,000, with the exact threshold varying by individual project.
Investing via CrowdStreet entails typical real estate risks such as market fluctuations and property-specific issues, with no guarantee of returns and potential for capital loss.
Investing on Rally carries risks, including fluctuating investment values and no guaranteed selling price. The unique nature of collectible assets also introduces specific risks. Detailed risk factors are outlined in each asset's Offering Circular or Private Placement Memorandum, available in the asset's "Legal" section for investor review.
CrowdStreet investments are generally illiquid, with capital committed for several years until a potential liquidity event, such as a property sale or refinancing, without a secondary market for early exit.
Rally's platform offers liquidity through Live Trading, allowing investors to buy and sell shares in real-time during market hours via the PPEX ATS, after a 90-day lock-up period. Shares must be held for 5 business days before resale, with brokerage services provided by Dalmore Group, LLC, a FINRA and SIPC member.
CrowdStreet has a historical 17.9% Realized IRR and a typical 3.1-year hold period for investments, with returns varying based on equity shares, debt interest, or hybrid terms, and property sales.
Rally's historical returns on collectible assets range from 1.35% to 84% over holding periods of 2 to 6 years. These all-time returns reflect the varied performance of different assets within this timeframe.
CrowdStreet investments typically have a hold period of 3.1 years on average, with some ranging from 3-5 years and others up to 10 years, reflecting a long-term investment horizon.
Investments on Rally typically have a 2 to 6-year horizon, suited for medium to long-term growth. A 90-day lock-up period post-Initial Offering restricts immediate trading, emphasizing a strategic, longer-term investment approach.
Individuals must be accredited U.S. residents with valid identification to invest on CrowdStreet, while entities need U.S. accreditation, taxation, and verification, subject to CrowdStreet's approval.
Rally is open to U.S. residents over 18 with a Social Security number, bank account, ID, and address in the contiguous United States, who pass KYC and AML checks.
Assets on CrowdStreet may experience volatility due to economic shifts, interest rate changes, and local market trends, affecting property values and investment returns.
The collectible assets on Rally, such as collector cars and memorabilia, exhibit volatility due to factors like consumer preferences, rarity, and market demand. Unlike traditional investments, their values can fluctuate unpredictably, reflecting the speculative nature of the collectibles market.
CrowdStreet's offerings are regulated by the SEC and subject to regular audits for compliance, ensuring adherence to legal standards for securities and real estate investments. However, details on specific audits and regulations are not publicly disclosed.
Rally operates under strict regulatory oversight, offering securities regulated by the SEC and partnering with FINRA and SIPC-member broker-dealers, ensuring investor protection. Its operations and assets are regularly audited for compliance, financial accuracy, and asset authenticity.
CrowdStreet's properties are typically insured against physical damage, but this does not cover market risks or guarantee full property value protection. Investors should note that insurance mitigates, but doesn't eliminate, all investment risks.
Rally protects its collectible assets with comprehensive insurance to cover damages or losses, ensuring investor interests are safeguarded against unforeseen circumstances.
CrowdStreet investors may receive distributions, typically on a quarterly basis, based on the cash flow and profitability of their investments, but these are not guaranteed and depend on the specifics of each project.
Rally primarily offers returns through capital appreciation rather than dividends, with investors benefiting from selling shares at a higher price than the purchase price, based on the asset's value increase over time.
Investors on CrowdStreet typically receive their money back after a liquidity event like a property sale, based on the timeline of the specific project's business plan. Real estate investments are illiquid, so funds cannot be withdrawn on demand.
Investors can get their money back by selling shares on Rally after the 90-day lock-up period, during market hours, via the app. Success in selling depends on market demand. Shares must be held for at least 5 business days before they can be resold.
CrowdStreet investments may include sponsor-determined fees such as acquisition, asset management, and property management fees, along with performance-based carried interest.
Rally charges no commissions or management fees on investments. Initial offerings include a sourcing fee detailed in each asset's offering circular. Instant Cash transfers incur a 1.5% fee with a $0.25 minimum, added to the transfer amount, but new users enjoy a 14-day fee waiver.
CrowdStreet issues Form K-1 or other relevant tax documents to investors for annual tax reporting, with the advice to consult a tax advisor for proper tax treatment of investments.
Rally issues 1099 tax documents to investors who sell shares or receive dividends, available in their Portfolio by March of the following year. Investors with active investments receive monthly statements, typically updated by the first week of each month, with new investments reflected within two months.