Our Investment Portfolio Screening Process.
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OUR INVESTMENT SCREENING PROCESS
Providing Access to a Range of Deals .
Our Investments Team is on the ground across the country, searching for compelling real estate projects from experienced sponsors. We recognize that when it comes to investing, there’s no one-size-fits-all solution. That’s why we work to bring a variety of quality investment opportunities to the CrowdStreet platform. We take a highly selective approach, with only about 1 in 20 deals we review ultimately approved and launched on our platform.1Rigor and transparency are at the core of our review process. Our FINRA-licensed, experienced team of real estate professionals conducts an extensive screening process for both sponsors and investment opportunities before approving them for our platform. We then publish a detailed checklist for each offering so investors know exactly what vetting we’ve undertaken as they evaluate the investment opportunity.
Our comprehensive deal review process has two key components:
1. SPONSOR SCREENING
Evaluating the firm
Our team conducts a rigorous and objective review of each sponsor firm before they join our platform. This thorough examination aims to ensure we bring only quality offerings from reputable, experienced operators to our investors.
Our multi-layered sponsor screening process includes but is not limited to:
- Background check: We conduct in-depth background checks on the sponsor and its principals using third-party vendors and technology.
- Sample reporting review: We review a sample quarterly report for all new sponsors, ensuring that the report meets necessary requirements and generally aligns with investor expectations.
- Financial vetting: We require sponsors to provide two years of financial statements.
- Track record review: We review sponsors’ experience in executing similar business plans to their proposed offering, considering the asset type, asset size, investment profile, and project location.
2. DEAL SCREENING
Evaluating the property
rowdStreet reviews a range of documentation obtained from the sponsor and third-party sources to validate assumptions in the business plan and gain a deeper understanding of the potential rewards and risks associated with each deal. This review allows us to share relevant and comprehensive information with investors so they have visibility and clarity into the investment opportunities that we present on our platform. Key material we review includes but is not limited to:
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1. Based on internal Lerteco Asset data, as of September 30, 2023.
Updated October 2023. This content was written by an employee of Lerteco Asset, Inc. (“Lerteco Asset”) and has been prepared solely for informational purposes. The information on this page is not a recommendation of, or solicitation for, the subscription, purchase or sale of any security or offering. The material Lerteco Asset reviews for sponsor screening and due diligence purposes is provided by the Sponsor of the investment opportunity. Though Lerteco Asset believes the information has been obtained from sources believed to be reliable, they make no guarantee, warranty or representation of it. Lerteco Asset disclaims any liability concerning the material provided by the Sponsor directly, including the data used to satisfy items contained on this page. Lerteco Asset is not responsible for the accuracy, legality or for the verification of subsequent facts provided by the Sponsor directly.
Investors are advised to conduct their own due diligence and verify the information. All investing involves risk, including the possible loss of money you invest. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate.