Yieldstreet Review 2022: Is Alternative Investing Right for You? – GOBankingRates | Candle Made Easy

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Fast recording: Yieldstreet is an alternative investment platform that securitizes art, real estate, short-term debt, structured notes and supply chain finance. The company is breaking down the barrier to investing in some high-dollar markets by allowing investors to buy shares in art and other assets for as little as $500. The platform has some disadvantages. Alternative investments are relatively illiquid, and the minimum investments in some of the company’s funds are $10,000 or more, which is unaffordable for many investors.
  • Assets Available
  • liquidity
  • fees
  • Accessibility

How did we calculate that?

advantages

  • Relatively inexpensive exposure to quality alternative assets
  • Reasonable fees typically range from 1% to 4% per year
  • Engaging in real estate, art, legal and supply chain investments
  • Asset-backed investments offer protection against payment defaults

Disadvantages

  • Some funds have high minimum investments
  • Alternative investments are not very liquid
  • Many options are only open to accredited investors

Yieldstreet overview

Yieldstreet’s alternative investment platform offers investors an easy way to add private assets to their investment portfolios. The company acquires artworks, real estate and other alternative assets and creates mutual funds around them. It sells portions of the assets to investors who share in the assets’ appreciation and ability to generate income.

Investors have access to a variety of assets on the platform including art, supply chain assets and structured notes. The company also offers the Prism Fund, a multi-asset class fund that offers access to all assets covered.

Minimum investments start as low as $500 but can go up to $10,000 or more with certain funds. Some funds are available to all investors, but the majority of funds on the platform are only available to accredited investors.

The fees on the platform are reasonable. The company charges between 1% and 4% annually of the amount an individual invests in return for its management services.

main features

The most important aspects to consider before signing up for Yieldstreet’s services are listed below.

Assets Available

Yieldstreet offers a wide range of assets to choose from including:

  • Property: The real estate offer on the platform includes investments in single and multi-family houses as well as commercial and industrial real estate developments.
  • Art: Yieldstreet’s art offerings allow investors to own shares in high-quality works of art. However, most minimum art fund investments are $10,000 or more.
  • Short term notes: Short-term debt offerings have a target annual yield of 4%.
  • Structured Notes: Yieldstreet’s structured debt categories include technology, consumer and diversified portfolios. Minimum investments in these portfolios are $15,000 or more.
  • Supply chain: Investors can tap supply chain portfolios. However, the minimum investments are $10,000 or more.

Yieldstreet also offers the Prism Fund, which includes assets from each of the fund categories above. Investor accreditation is not required to tap into the multi-asset portfolio and the minimum investment is only $500.

liquidity

Alternative investments are generally illiquid, meaning that once made, these investments are difficult to convert back into cash. The illiquidity stems from the fact that alternative investments do not have a large secondary market.

There is no secondary market on the Yieldstreet platform and investors receive payments through monthly distributions. The company’s website states that optional liquidity could be available in June 2021, but that deadline has passed and it still doesn’t mention any other liquidity features. Investors should avoid investing money they don’t like keeping locked up for long periods of time.

fees

Yieldstreet charges an annual management fee that varies from fund to fund. Most annual management fees are between 1% and 4% of the amount invested. Yieldstreet explains the fees in the fund’s description on its website.

Accessibility

All investment opportunities on Yieldstreet are accessible to accredited investors, but the average person will have accessibility issues. Most of the funds on the platform have minimum investments of $10,000 or more, and few are available to non-accredited investors.

Good to know

Alternative investments are illiquid, including those on platforms that offer secondary markets. Never invest money that you need in the short term in assets such as art, real estate or fine wines.

Competing Options

Investors who are not accredited and want more options should check out Yieldstreet’s competitors below.

masterpieces

Masterworks is an alternative investment platform focused on the sale of securitized works of art. The platform does not require investor accreditation to buy shares and there is no single minimum investment amount required – the minimum investment depends on the painting. In addition, Masterworks offers a secondary market to combat the liquidity issues associated with investing in alternative assets.

vintage

Vint is an alternative investment platform that provides access to securitized fine wines. The platform securitizes collections of high quality wine bottles, allowing investors to tap into the stable returns of the wine market with the certainty of Securities and Exchange Commission regulations. Shares start at just $25 and there are no annual fees.

How to sign up

Follow the steps below to sign up for Yieldstreet:

Started

  1. Click on the pink “Sign In” button in the top right corner of the company’s website.
  2. Sign up with Google, Apple or your email address.
  3. Answer a few short questions about yourself.

Once you have completed all the steps, you can start investing on Yieldstreet.

Is Yieldstreet right for you?

Yieldstreet is best suited for high net worth, accredited investors as the vast majority of the listings on its platform are only available to accredited investors and require high minimum investments.

Final recording

Yieldstreet is a great way for accredited investors to diversify their investment portfolios. However, smaller retail investors are likely to be better served by one of the company’s competitors.

Yieldstreet FAQ

It is normal to have questions about an investment product before investing. Below you will find the answers to some of the most frequently asked questions.
  • Can you lose money with Yieldstreet?
    • All investments involve risk, and Yieldstreet is no exception. For example, if you invest in a real estate fund focused on a commercial complex and the complex’s tenants fail to pay their rent, the fund may default, resulting in a partial or total loss of your investment.
    • Investors should do their research before making any investment on the Yieldstreet platform or anywhere else to reduce their chances of taking losses.
  • What is Yield Street Investing?
    • Yieldstreet is an alternative investment platform that offers access to assets such as art and real estate. The company invests in high-quality works of art and real estate and sells shares in the assets to investors. Investors then participate in the price increase and the income generated by the investments.
  • Is Yieldstreet a REIT?
    • Yieldstreet is an investment platform, not a real estate fund. However, the company offers various funds that act as REITs. Investors buy shares in real estate portfolios and participate in the income generated when tenants pay rent on the assets within the portfolios.
  • How can I contact Yieldstreet?
    • Investors can contact Yieldstreet by phone at 844-943-5378 or by email at investment@yieldstreet.com. The Company does not offer a “Contact Us” page or live chat feature on its website. However, it does offer a chat feature with its Virtual Associate.
  • Is Yieldstreet better than Masterworks?
    • Yieldstreet offers access to a broader range of asset classes, while Masterworks only offers access to art. However, most funds on Yieldstreet are prohibitively expensive and require investor accreditation. Therefore, Masterworks is a better option for investors interested in art investments.

Editor’s Note: This content is not provided by Yieldstreet. Any opinion, analysis, review, rating, or recommendation expressed in this article is solely that of the author and has not been reviewed, approved, or otherwise endorsed by Yieldstreet.

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About the author

Joshua Rodriguez is a personal finance and investing writer with over 10 years of experience. He is the founder of CNA Finance. His work has been featured in US News & World Report, Money Talks News, and several other mainstream media outlets.

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