Living by one stream of income is a high disadvantage. Having a side job is a plus, but nothing beats being money smart. To be money smart involves earning, saving, and investing. A question that comes to mind is how does one go about investing with options, risks, and benefits attached?
With the risk associated with traditional investments (stocks and bonds) stacking up, modern investors should look into alternative investments.
Alternative investments (also called alternative assets) invest in other asset classes aside from cash bonds and stocks. Alternative assets include non-fungible tokens, cryptocurrencies, peer-to-peer lending, contemporary arts, real estate, and many others.
Alternative investments help diversify your portfolio and create a safety net for your investment.
Accessing such assets has become easy, thanks to the advancements in technology. Platforms such as Yieldstreet offer such a service with ease.
This review explores various aspects of the Yieldstreet platform, including its pros and cons, to enable you to decide whether or not you should go for it.
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What is Yieldstreet?
Yieldstreet is an online investment platform founded in 2015 that specializes in alternative investment products such as real estate, shipping vessels, financial instruments, legal settlement, and art. It also crowdfunds loans.
It is a one-stop platform for alternative assets. It allows investors to generate passive income and wealth outside the traditional means, which depend greatly on the ever-inflating economy.
Yieldstreet gives high returns and provides funds for striving businesses and projects.
In previous times, Yieldstreet was only available to accredited investors. Accredited investors are people with a minimum net worth of $1M exclusive of their primary residence or who earn a minimum of $2,000,000 annually. Now, the Yieldstreet Prism Fund is available to all investors of various classes.
How Credible is Yieldstreet?
The alternative finance platform is blooming so fast with various competitors, giving investors a fair chance to make profits. With several options, how do you decide if Yieldstreet is perfect for you?
Yieldstreet is a unique platform that has gained popularity since 2015. It has been featured in top investment magazines such as TechCrunch, Forbes, and The Wall Street Journal. In 2018, YieldStreet won the “Best Alternative Investment Platform” at the Benzinga Global Fintech Awards.
It was also named the fastest-growing private company in the US by Inc. It has also received an A+Renfro from the Better Business Bureau(BBB). It has given back about $398M as investment yields to investors.
YieldStreet is known for its excellence and reliability. It’s also known for its transparent investment policy, created and managed by asset-based loan transaction specialist Michael Weisz.
Yieldstreet Investment Policy
The Yieldstreet investment policy was formulated based on the following points:
- Asset-based Investment only: When seeking funds from Yieldstreet, provide verifiable assets such as real estate, vehicles, and industrial equipment as collateral.
- Experienced Management: All investments are managed by a team of experts in that field to help assuage the risk factors.
- 8-15% Annual Returns: Investors receive a profit of about 8-15% annually.
- Loans are Short Termed: Most investments of Yieldstreet are in loans. These loans are short termed to enable reinvestment and decrease investment risks. The loan lifespan ranges from1 to 3 years.
- Low Stock Market Correlation of Investment: Due to the precarious nature of the stock market, the investment returns of Yieldstreet do not follow that of the stock market. This makes Yieldstreet a safer and low-risk option.
Yieldstreet Investment Offerings
- Real Estate
- Legal
- Commercial
- Art
- Marine
Pros
- It provides investors with a detailed overview of every investment opportunity, mapping out the terms and giving complete information to help investors make informed decisions.
- It has a user-friendly platform. It is easy to use and beginner-oriented. Setting up an account is easy and fast.
- It offers a range of alternative assets which have been carefully selected. These assets include legal settlements, art, and real estate, which gives investors a full dish of options.
- It offers education to investors. Its blog is an excellent investment resource.
- It offers options for accredited investors.
- It has a mobile app available on both iOS and Android phones.
- Investors receive interest payout regularly during the life span of the loan. These payments are made on time.
- It is open to investors of various backgrounds thanks to the Yieldstreet Prism Funds, whose initial investment is as low as $500.
- Stock market immunity.
Cons
- The investment risk is very high. It is suited for investors with large amounts of cash.
- It has higher investment fees. of about $5,000
- It lacks good customer service. Investors are not well informed of the recent updates.
- Once you have invested in a particular Yieldstreet offering, you can’t reinvest further. Your investment is tied for that duration of time.
Other Real Estate Investment Platforms
Conclusion
Yieldstreet is a credible alternative investment platform for accredited investors looking to diversify their portfolios. It has strict investment policies that help reduce risk. No investment is risk-free, and Yieldstreet has been tested and proven to have promising options for investors.