What is CrowdStreet's offer acceptance policy?
Each investor's offer receives a timestamp as soon as they complete their documents and CrowdStreet allows these investors to access funding instructions in that order.
If the offering becomes oversubscribed, investors who don’t complete their documents promptly will be moved to a waitlist, while the investors who’ve completed documents have the opportunity to fund.
Ultimately, not all investors who submit offers will be able to invest in an offering that is oversubscribed. Investments will be finalized on a first-to-fund basis from among the offers where investors completed documents soonest.
What does it mean when an offering is oversubscribed?
An offering becomes oversubscribed once the total offers submitted exceed the equity allocation.
Why does CrowdStreet oversubscribe offerings?
Sponsors require a high level of certainty that committed capital will ultimately convert to invested capital, and they require absolute certainty that 100% of required equity funds by the time of closing.
For this reason, CrowdStreet typically accepts offers until around 110% of the total equity allocated to Marketplace investors is reached. This to account for investor attrition. Once this number is reached, the offering is removed from the Marketplace and no more offers can be submitted.
Can one investor's large offer displace the smaller offers of other investors?
No, CrowdStreet has adopted a Global Allocation Policy to ensure that we’re able to deliver on our commitment to democratize access to commercial real estate investing.
For oversubscribed offerings with an equity allocation for CrowdStreet investors of $5 million or more, investors are capped at a maximum investment size of $250,000.
For oversubscribed offerings with an equity allocation for CrowdStreet investors of less than $5 million, investors are capped at a maximum investment size of $100,000.
If you submit a large offer in an offering that is oversubscribed, CrowdStreet reserves the right to reduce your offer to the maximum investment size noted for each previous scenario, and will notify you by email.
How can I maximize my chance of participating in an offering that is likely to become oversubscribed?
Offers will be pre-approved within a few hours of the investment window opening (usually at 5:00 PM PST). When your offer is pre-approved, you will receive an email inviting you to complete your documents. CrowdStreet grants investors access to funding instructions in the order in which they complete their documents (as opposed to the order in which they click the "Invest Now" button). Therefore, complete your documents promptly to maximize your chance of participating in the offering. Ultimately, investments will be finalized on a first-to-fund basis.
For a list of tips to help you prepare to participate in a high-demand offering, refer to this article: How to increase chances of participating in a high-demand deal.