Yieldstreet Review 2024: Pros, Cons and How It Compares
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Our Take
4.6
The bottom line:
on Yieldstreet's website
Pros & Cons
Pros
Access to real estate, commercial, legal and art investments.
Ability for individuals to invest in private equity.
Cons
Most investments are highly illiquid.
Most investments open only to accredited investors.
Compare to Similar Brokers
Current Product
NerdWallet rating 4.6 /5 | NerdWallet rating 4.2 /5 | NerdWallet rating 4.9 /5 |
Fees 0% - 2.5% management fees; other fees apply. | Fees 0.5% - 1.5% other fees apply | Fees 1% to 1.25% management fees; other fees may apply |
Account minimum $10,000 | Account minimum $5,000 | Account minimum $5,000 |
Promotion None no promotion available at this time | Promotion Earn a special 1% return boost on your first investment | Promotion None no promotion available at this time |
Learn more on Yieldstreet's website | Learn more on EquityMultiple's website | Learn more on RealtyMogul's website |
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Full Review
Yieldstreet launched its first offering in 2015 in litigation finance, which pairs investors with a plaintiff looking to borrow cash to cover expenses before an expected lawsuit settlement arrives. It has since branched out into a variety of offerings, including financing industrial and residential property deals, private equity and fine art.
While most deals are for accredited investors only, Yieldstreet's Alternative Income Fund is open to nonaccredited investors with a minimum investment of $10,000.
In early 2024, Yieldstreet completed an acquisition of Cadre, another online real estate investment platform .
Yieldstreet is best for
Accredited and nonaccredited investors looking to diversify their portfolio.
Investors who are comfortable locking up their cash, sometimes for years.
Investors looking for income-producing investments.
Yieldstreet at a glance
Investor requirements | Most offerings available only to accredited investors. |
Investment minimum | Minimum investment is $10,000. |
Redemption options | Most investments are not considered liquid. Alternative Income Fund offers quarterly distributions and liquidity windows. Other offerings may have terms as short as six months. |
Fees | 0% to 2.5% management fee. Additional fees may apply. |
Investment selection | Asset classes include real estate, private credit, short-term notes, venture capital, private equity and art. |
Website transparency | This is our judgement of how easy it is to find critical information on the Yieldstreet website, including platform fees, account minimum and redemption options (if offered). |
Investment transparency | This is our judgement of how easy it is to find critical information about investment offerings, including investment fees, risks, risk mitigation efforts, the process for vetting investments and how investment returns are distributed to investors. |
Customer support options | Phone support, chat and email. |
Yieldstreet features you should know
Minimum investment: The company says the minimum investment is typically $10,000. This is also the minimum for the Alternative Income Fund, which is open to nonaccredited investors.
Investments offered: Yieldstreet focuses on securing debt investments across a variety of real estate, art, commercial loan and litigation deals.
Each investment offering is featured on the company’s website with important details, including the total offering size, minimum and maximum investment accepted, duration and expected annual investment return. Yieldstreet also details why the company likes the investment, the expenses, risks (and how it is attempting to mitigate those risks) and expected time schedule for repayments. Note that only some investments are available to view before opening an account.
Asset-based investments: Offerings on Yieldstreet are often backed by an underlying asset such as real estate or a legal settlement, which gives the company a way to potentially recoup defaulted loans. Still, the return of your investment is not guaranteed, and all investing involves risk, including the possibility of losing your principal investment.
Fees: Yieldstreet collects an annual management fee that ranges from 0% (for short-term notes) to 2.5%. Yieldstreet may also charge the originator a listing fee.
In some cases, Yieldstreet says it may collect a share of excess returns before sharing with investors — this information is disclosed on the investment offering page if applicable.
Most offerings for accredited investors only: Most investment deals on Yieldstreet are available only to accredited investors. The Securities and Exchange Commission defines these investors as those with a net worth of more than $1 million (not including the value of a primary residence) or annual income in each of the last two years of at least $200,000 for individuals or $300,000 for a couple.
Fund for nonaccredited investors: Yieldstreet's Alternative Income Fund offers investors exposure to more than 20 investments, including real estate and private credit. The fund aims to pay a quarterly distribution to investors, and is more liquid than other offerings — there are quarterly liquidity windows. However, the fund limits the number of shares that can be repurchased in any calendar year, so liquidity is not guaranteed. This is common among alternative investment and real estate platforms.
Offers a self-directed IRA: You can invest in Yieldstreet through an IRA, though the account must be set up with Yieldstreet, which offers its plan through Equity Trust.
Illiquid investments: Once you commit to a Yieldstreet opportunity, the investment can’t be redeemed for the duration of the offering, which can extend beyond the planned “target duration,” Yieldstreet notes. So once your money is in, you’re committed to seeing the investment through. The exception is the Alternative Income Fund, detailed above.
Limited availability of investments: Most deals iare open for investment for a limited period of time on a first-come, first-served basis, so you may walk away empty-handed, even if you come to the site ready to invest.
» Compare before investing: Best real estate crowdfunding platforms
Is Yieldstreet right for you?
Yieldstreet offers individual investors an opportunity to invest in alternative assets, offerings that are usually reserved for hedge funds and institutional investors.
One caution: A rule of thumb is to invest no more than 10% of your portfolio in alternative investments such as the ones Yieldstreet offers. It's generally considered wise to focus the bulk of your portfolio on index funds or mutual funds, which give you broad and diversified exposure to the stock market.
» Ready to start investing? Best online brokers for stock trading
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NerdWallet’s comprehensive review process evaluates and ranks companies that allow U.S. customers to invest in real estate, primarily through non-traded REITs or private equity. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
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For more details about the categories considered when rating brokers and our process, read our full methodology.
on Yieldstreet's website
