{"id":1559,"date":"2023-04-26T15:02:09","date_gmt":"2023-04-26T15:02:09","guid":{"rendered":"http:\/\/www.autofinancechase.com\/?p=1559"},"modified":"2023-07-20T05:06:28","modified_gmt":"2023-07-20T05:06:28","slug":"yieldstreet-review-2023-alternative-investments-for-your-portfolio","status":"publish","type":"post","link":"https:\/\/www.autofinancechase.com\/index.php\/2023\/04\/26\/yieldstreet-review-2023-alternative-investments-for-your-portfolio\/","title":{"rendered":"Yieldstreet Review 2023: Alternative Investments for Your Portfolio"},"content":{"rendered":"

Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase or sign up through my links, at no cost to you.<\/em><\/p>\n

What is Yieldstreet?<\/h3>\n

Yieldstreet is an alternative investment platform that provides exposure to a solid, diverse range of funds, assets, and structured notes.<\/p>\n

Founded in 2015, they\u2019ve managed $2.2b in alternative investments with a net IRR of 10.58% \u2014 almost identical to the S&P\u2019s long-term average of 10.43%<\/p>\n

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\u2019ll get into later.<\/p>\n

Like so many others in this space, Yieldstreet\u2019s vision is to put power back into the hands of everyday investors.<\/p>\n

YieldStreet Credentials<\/h3>\n

As the idea progressed, the\u00a0number of crowdfunding platforms and P2P campaigns\u00a0saw 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?<\/p>\n

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.<\/p>\n

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 \u201cBest Alternative Investment Platform\u201d award. And why not?<\/p>\n

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

After reviewing the platform closely, we found out that the secret of its excellence and reliability lies in its transparent investment policy.<\/p>\n

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What investments does Yieldstreet offer?<\/h3>\n

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.<\/p>\n

Multi-class fund (Yieldstreet Prism Fund)<\/h4>\n

This multi-asset class fund gives you access to a fixed-income portfolio spread across multiple asset classes \u2014 including art, commercial, consumer, legal, real estate, and corporate. Yieldstreet selects the different assets so you don\u2019t have to go through the trouble of picking each one.<\/p>\n

This product is available through the Yieldstreet Prism Fund. It comes with a minimum investment of just $500, and you don\u2019t need tons of money or to be an accredited investor to get involved.<\/p>\n

Short-term notes<\/h4>\n

Yieldstreet\u2019s 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.<\/p>\n

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.<\/p>\n

Single asset class offerings<\/h4>\n

Single asset class offerings let you invest in a curated list of offerings spread across multiple alternative asset classes \u2014 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.<\/p>\n

To buy single asset class offerings, you need accreditation and a minimum of $10,000 to invest.<\/p>\n

Structured notes<\/h4>\n

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.<\/p>\n

This is also for accredited investors and requires a minimum investment of $15,000.<\/p>\n

Supply-chain investing<\/h4>\n

Yieldstreet\u2019s\u00a0supply-chain financing program\u00a0allows you to profit from lending programs that provide working capital for global manufacturers and suppliers. Again, this is for accredited investors only.<\/p>\n

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.<\/p>\n

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.<\/p>\n

Real estate investing<\/h4>\n

It\u2019s possible to\u00a0invest in real estate\u00a0through Yieldstreet. This could help you generate passive income without having to deal with the hassles that come with owning or managing a property.<\/p>\n

Yieldstreet provides access to commercial, residential, and multi-family properties. The company offers returns through income-generating loans backed by either equity\u00a0investments in real estate\u00a0properties or real estate itself.<\/p>\n

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.<\/p>\n

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How much does Yieldstreet cost?<\/h2>\n
One thing to note about Yieldstreet is that when looking at its estimated returns, they include their fees. This means that you don\u2019t have to do the math yourself, but it is important to know that Yieldstreet charges its users fees.<\/div>\n
Typically, Yieldstreet charges a management fee of about 0% to 2.5% on all offerings on an annual basis.<\/div>\n
Other than the minimal management fees associated with Yieldstreet, creating and funding an account on the platform is completely free of charge. That said, you must have a minimum investment of $2,500 to get the ball rolling with Yieldstreet\u2019s Prism Fund.<\/div>\n
<\/div>\n
Fees<\/strong><\/div>\n
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Yieldstreet charges a management fee between 1 \u2013 4% for individual investments. There are no fees for short-term notes.<\/p>\n

The fees charged by Yieldstreet are on-par with other private investment platforms.<\/p>\n

All targeted returns listed by Yieldstreet are quoted net of listing and management fees, but not the flat rate annual expenses.<\/p>\n

The flat rate annual expense fee is charged on each investment and is deducted from your first interest distribution; this fee varies per investment and is applicable for each investment.<\/p>\n

There are no fees to sign-up for the Yieldstreet platform.<\/p>\n

I wish Yieldstreet was clearer that the returns are net of management fees, but not the flat rate annual expenses. This is a little misleading and could easily confuse potential investors.<\/p>\n

While it\u2019s listed in the offering documents, I\u2019m sure plenty of individuals overlook the flat rate expenses.<\/p>\n