Real Estate Crowdfunding Mid-2025 Update

Hey everyone! I haven’t written about our real estate crowdfunding investment in a while. There have been some developments. We had some good news and some bad news. Apartments and senior living are doing great.

On the other hand, the office investment isn’t doing so well. We probably will lose a significant percentage of our investment. Read on for more details.

Performance

Here is the performance of all the real estate projects I invested in.

I have 4 active projects and 7 completed projects. Today, I’ll focus on the active investments. You can read more about the completed projects here.

Active projects

CrowdStreet WA apartment – This one is going well. The developer continues to upgrade the apartment and increase the rent to the market rate. They are paying out regularly. Recently, they refinanced and returned $12,000 of capital to the investor. It’s nice to have some money back. I’ll put this into remodeling our home. Mrs. RB40 wants a nicer kitchen… CrowdStreet Chicago office building – This one is in trouble. They finished remodeling, but they are struggling to fill the office space. An office building might have been a good investment before the pandemic, but it’s terrible now. The developer issued a few capital calls because they had to refinance in a high-interest environment. Last I heard, they are converting part of the building into a data center. To do this, they raised capital from a private source and diluted the original investors’ shares. I didn’t send in any money for the capital calls, so I was already diluted. At this point, I just hope they wrap it up and sell the building soon. Hopefully, we can recoup about 50% of our investment. This one went bad during the pandemic and never recovered. Also, the developer is awful with communication and documentation. They still haven’t submitted the K-1 for 2024 yet. I’m waiting for it to finish my taxes. CrowdStreet Senior Living Fund – The fund is doing well. They returned some capital last year (about 10%). Senior living is a good sector. We should exit with good returns in a year or two. CrowdStreet NC apartment – This one is going well. They are paying out regularly.

Wrap Up

All in all, we are ahead with real estate crowdfunding. However, it was a much better investment when the interest rates were low. Now, it’s more difficult to generate good returns because of high interest and high construction costs. The developers have to refinance their construction loans into a permanent loan when a building is completed. The higher interest rate means higher expenses for investors. It’s complicated. I think apartments and senior living are still great, though.

Once these 4 active projects finish, I plan to take a break from crowdfunding and dividend investing for a few years. RB40Jr will start college in 2029, and we want to lower our AGI for FAFSA. RE crowdfunding takes 3-5 years to complete. I don’t want a big payout while my son is in college because it could increase our AGI too much. After he graduates, I’ll come back to RE crowdfunding.

Are you investing in real estate? What’s your strategy?

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