Yieldstreet Review 2023: Alternative Investments for Your Portfolio

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What is Yieldstreet?

Yieldstreet is an alternative investment platform that provides exposure to a solid, diverse range of funds, assets, and structured notes.

Founded in 2015, they’ve managed $2.2b in alternative investments with a net IRR of 10.58% — almost identical to the S&P’s long-term average of 10.43%

They have several investment options to choose from, including an art-focused fund, thematic/specialized real estate, and a multi-class blend open to non-accredited investors, called the Prism Fund, which we’ll get into later.

Like so many others in this space, Yieldstreet’s vision is to put power back into the hands of everyday investors.

YieldStreet Credentials

As the idea progressed, the number of crowdfunding platforms and P2P campaigns saw a staggering rise. All of them aimed to democratize the investment market and give the typical investor a fair chance. But, how can you figure out if YieldStreet is the perfect platform for you from the lot?

What makes this alternative platform stand out is the popularity and credentials it has bagged since 2015. It has been featured in leading investment magazines such as Forbes, Tech Crunch, and even The Wall Street Journal.

Besides that, it was named as the fastest-growing private company in the US by Inc. In 2018, at the Benzinga Global FinTech Awards, YieldStreet won the “Best Alternative Investment Platform” award. And why not?

The P2P crowdfunding platform has made about 396,000 payments to date and has given back about $398M to investors as investment returns.

After reviewing the platform closely, we found out that the secret of its excellence and reliability lies in its transparent investment policy.

What investments does Yieldstreet offer?

One of the nice aspects of Yieldstreet is the variety of investment opportunities you can access through the service. The platform gives you access to various investment products, depending on your current needs and the amount you want to invest.

Multi-class fund (Yieldstreet Prism Fund)

This multi-asset class fund gives you access to a fixed-income portfolio spread across multiple asset classes — including art, commercial, consumer, legal, real estate, and corporate. Yieldstreet selects the different assets so you don’t have to go through the trouble of picking each one.

This product is available through the Yieldstreet Prism Fund. It comes with a minimum investment of just $500, and you don’t need tons of money or to be an accredited investor to get involved.

Short-term notes

Yieldstreet’s short-term notes are investment vehicles that come in three- to six-month offerings, with interest rates that usually exceed what you can find in CDs and money market accounts.

In order to take advantage of this product, you must put up a minimum investment of $1,500. Unfortunately, you also need to be an accredited investor to invest in short-term notes on Yieldstreet.

Single asset class offerings

Single asset class offerings let you invest in a curated list of offerings spread across multiple alternative asset classes — like supply-chain financing, structure notes, multi-family apartments, and high-end art portfolios. Due to the diversity of these products, it comes as no surprise that each of them comes with varying terms and yields.

To buy single asset class offerings, you need accreditation and a minimum of $10,000 to invest.

Structured notes

This product provides access to thematic notes, which provide recurring coupon payments and protection against equity downside. These products are hybrid securities issued as debt but are linked to underlying stock performance.

This is also for accredited investors and requires a minimum investment of $15,000.

Supply-chain investing

Yieldstreet’s supply-chain financing program allows you to profit from lending programs that provide working capital for global manufacturers and suppliers. Again, this is for accredited investors only.

At the time of writing, there are two offerings to select from. The Supply Chain Financing I option comes with an annual interest rate of 8.5%, a final term of six months, and an offering size of $14.75 million.

You can also select Supply Chain Financing Limited Term I, with an annual interest rate of 9.5%, a final term of 18 months, and an offering size of $10.1 million.

Real estate investing

It’s possible to invest in real estate through Yieldstreet. This could help you generate passive income without having to deal with the hassles that come with owning or managing a property.

Yieldstreet provides access to commercial, residential, and multi-family properties. The company offers returns through income-generating loans backed by either equity investments in real estate properties or real estate itself.

According to Yieldstreet, the company has more than $480 million in real estate investments to date, with $37 million total interest earned and a 9.46% historical net IRR.

How much does Yieldstreet cost?

YieldStreet Risk Management

All investments are subject to risk by nature. Even though YieldStreet cannot be proclaimed to be completely risk-free, there are a few factors by which the platform lowers the risk and protects its investors.

• Firstly, all loans are asset- or collateral-backed. In such cases, even if the borrower defaults on the repayment, your investment is safe.
• Secondly, YieldStreet carefully scrutinizes every candidate before working with them. Usually, they employ a dedicated third-party team to investigate every detail of the organization, including their financial record and reputation.
• Thirdly, they’re more likely to choose originators who have a certain level of experience in investment.

1. Set up your account

The first step is to register with Yieldstreet. This involves providing your basic information — like your name and primary residence.

In addition, you must link your bank account or savings account . Click “sign up” at the bottom of the Yieldstreet home page and go through the registration process. This involves providing basic account information and logging into the platform.

2. Participate in an investment offering

Once you’re up and running on the Yieldstreet app, the next step is to make an investment.

To do that, log in and visit the offerings marketplace. Browse the available offerings, see which you qualify for, and choose one you like.

When you’re ready, click “invest now” and enter the amount you want to put into the fund. In the end, all you have to do is finalize the investment and you’ll be ready to go.

3. Maintain the investment

After you invest, you have to maintain your portfolio within the Yieldstreet platform. Unfortunately, Yieldstreet doesn’t manage investments for customers. Personally, I think this is a good thing because it forces you to take a more active role in investing.

Yieldstreet Review Pros And Cons

Pros

• The platform gives you access to a wider pool of investments than a traditional brokerage, including art finance, litigation finance, and real estate.
• Yieldstreet lets you receive steady interest payout for recurring passive income.
• You can easily diversify your portfolio to reduce risk and increase your earning potential.
• FDIC protection is available on some products for individual investors.

Cons

• Watch out for annual management fees, which can cost hundreds of dollars.
• Investments have reduced liquidity, meaning you won’t be able to easily move money around.
• Some of the products aren’t FDIC-insured.

Who is Yieldstreet best for?

Individual investors without accreditation

Accredited investors