CrowdStreet, an online marketplace for direct equity investment in commercial real estate (CRE), announced on Wednesday the launch of its investor-friendly approach to investing qualified retirement account funds into commercial real estate offerings.
According to CrowdStreet, the new option makes it easier than ever for investors to access CRE investments with their self-directed IRAs (SDIRA), which in return reduces their investment exposure to a volatile stock market and achieving more independence in managing their investments. CrowdStreet explained:
“An SDIRA is an individual retirement account where the investor is in total control of the investment decisions and transactions. SDIRAs can invest in real estate, private market securities and a wealth of other lucrative possibilities not available to traditional IRAs and 401(k)s. Though the securities and investments are in the investor’s control, they are held in an account administered by a qualified custodian.”
Speaking about the option, Ian Formigle, Vice President of Investments at CrowdStreet, stated:
“With tax season in full swing, this is the time of the year investors evaluate how they are doing with investments, and think about ways to make their portfolios work smarter for their retirement future. The ability to use retirement funds, which might otherwise be sitting idly or making marginal returns on stocks and bonds, gives investors the financial freedom to diversify their portfolio in an asset class that has historically outperformed stocks and bonds.”
Founded in 2013, CrowdStreet describes itself as a premium provider of online commercial real estate investment marketplace, technology, and professional services that connects investors and CRE firms in order to maximize wealth.