Streitwise is an online real estate investing platform that makes it possible for almost anyone to invest in commercial real estate properties.
The company promises impressive dividend yields, low fees, retirement account options, and the ability to generate passive income through professionally managed real estate investments.
This post is going to tell you everything you need to know about Streitwise so you can make the call on whether or not it’s the right place for you to grow your nest egg.
You’ll also learn about the qualification requirements, the pros and cons of investing with them, how their customer service works, and more.
What is Streitwise?
Streitwise was founded in 2017 and is owned by Tryperion Partners. The company’s goal is to significantly lower the barrier of entry to commercial real estate investing. With as little as $1,000, you can invest in a professionally managed portfolio of commercial rental properties.
The company’s name might throw you off at first, so let me break it down for you. It’s pronounced “streetwise.” The name is a play on the acronym, REIT, which stands for real estate investment trust. In case you were wondering, a REIT is an actively managed, revenue-generating portfolio of real estate investments that investors can buy into.
How Does Streitwise Work?
The way that Streitwise works is simple: Once your investment account is funded, you’ll automatically receive a portion of shares based on how much money you invest. At the time of this writing, shares are around $10, which means that a $1,000 investment will get you roughly 100 shares.
These funds are projected to grow as the firm anticipates it’s property values to increase over time. However, as with most investments, there’s risk involved, too. If Streitwise’s properties go down in value, so do the value of your shares. In an age where more and more people are working from home, it’s tough to predict what will happen to the commercial real estate market.
With all this in mind, let’s take a look at how this real estate investment platform works so you can determine whether Streitwise would serve as a welcome addition to your portfolio.
Here are some of the main benefits that you’ll get from investing with Streitwise:
Lower fees. Streitwise appears to charge lower fees than its competitors, which could lead to a greater return for investors. Whenever you’re investing in an asset, be sure to check out what fees are charged. The last thing you want is to put money into something that eats up more of your capital than the average investment.
Direct Ownership. When you invest with Streetwise, your money is going to the actual property owners as opposed to a middleman. As a result, you’re more likely to pay lower fees and enjoy a better ROI.
Tax-advantaged. Your investments in Streitwise are considered non-traded real estate investments by the IRS (or REITs), which means you won’t get double taxed on any gains. Huzzah!
Experienced Management. Streitwise’s founders collectively have over 40 years of investing experience. To date, they’ve notched over $5 billion in real estate transactions on their belts.
Revolving Investment Options
Revolving Investment Options. At the time of this writing, Streitwise has two investment options available to new investors:
- 1st Streit Office Inc. This Class A office property is located in the Sunset Hills district of St. Louis and provides corporate office space for major brands like Wells Fargo, Nationwide Insurance, and Panera Bread.
- Allied Solutions Building. This is a mixed-use office and retail building located in Carmel, Ind., which is an affluent suburb of Indianapolis. The property is valued at over $32 million and features over 142,000 square-feet of Class A office and retail space. Check out this video to learn more.
Self-Directed IRA. If you have a rollover IRA from a past job, or a self-directed IRA from your current employer, you may be able to invest with Streitwise and enjoy the tax benefits that come with retirement investing. The only downside here is that your cash will be tied up until retirement; if you need to withdraw it before then, you’ll likely have to pay a fee.
Dividend Reinvestment Plan
Dividend Reinvestment Plan. If you’re gung-ho about increasing your REIT holdings as fast as possible, you might want to opt into Streitwise’s Dividend Reinvestment Program. If approved, you can elect to have your dividend earnings automatically reinvested in more Streitwise shares.
Streitwise charges a 3% up-front fee on funds deposited and a 2% assets under management fee, billed annually. For the full details, check out their offering circular. (This is a 200-plus page document, but if you have questions, their agents can walk you through it.)
A major bonus to the Streitwise platform is that it’s available to both accredited and non-accredited investors. They even cater to international clients, so if you’re an overseas investor who wants to get in on U.S. real estate, this might be your best chance.
Accredited investors can invest as much as they want in the platform. If you’re wondering, accredited investors are individuals who earn over $200,000 annually, couples who earn over $300,000, or those who have a net worth of over $1,000,000 (not counting their primary residence).
If you’re not an accredited investor, you can still open up an account and buy shares. However, you may be limited to investing only up to 10% of your annual income.
This doesn’t seem like too bad of a deal, though, because this type of account should only be one piece of your long-term, diversified investment portfolio. It’s also better than nothing!
Signing Up and Getting Started
To sign up for Streitwise, click the blue Start Investing button on the top right corner of your screen or the Get Started Today button in the middle of your screen.
Next, you’ll be asked to enter your name, email address, how much money you want to invest, and how you plan to fund your new account.
After that, enter your address, phone number, Social Security number, and date of birth.
At the next step, Streitwise asks whether or not you’re an accredited investor. If you are, you’ll have to declare why you consider yourself to be accredited. If you’re not an accredited investor, enter your estimated annual income and net worth. It’s pretty straightforward.
Next, it’s time to enter your bank account information, which you will use to deposit funds.
Once that’s done, you’ll be asked to digitally sign a legal agreement to complete the application process.
After signing the agreement, Streitwise will initiate the funds transfer. Congrats! You’re now on your way to earning passive income through crowd-funded commercial real estate. What a great addition to your portfolio!
Overall, Streitwise feels like a secure place to manage investments. The company partners with several leading technology and cybersecurity providers to ensure that your data and funds are safe from harm.
Streitwise is also regulated by the SEC, which means that they’re thoroughly vetted and have to follow strict compliance protocols. Rest assured this isn’t some sort of scam.
To contact Streitwise, give them a call at 310-907-5527 from Monday through Friday, 8 a.m. to 5 p.m. Pacific Time. If those hours don’t work for you, you can send them an email whenever you’d like.
Check out their contact page for more details about how to get in touch with Streitwise.
Pros and Cons
- Low barrier of entry with a $1,000 minimum investment
- Lower risk than buying single commercial properties on your own
- Funds are invested directly with the property owner, as opposed to a middleman
- Non-accredited investors and international investors can participate
- Decent dividend yields can help you unlock passive revenue streams
- Investments may reduce in value due to fluctuations in the real estate market
- Only two investment properties available at the time of this writing
- $1,000 buy-in might be too hefty for some
Alternatives to Streitwise
The crowdfunding real estate investment market is booming these days, but the space is relatively new. Truth be told, there aren’t a ton of established companies out there.
Some of the more popular alternatives to Streitwise are:
Is Streitwise For You?
If you’re eager to get in on the crowdfunded real estate action, but don’t have $5,000 or more saved up, Streitwise might be a good place for you to test the waters.
It’s also a solid platform for non-accredited investors because some of the bigger real estate investing platforms—like CrowdStreet, for example—are ONLY available to accredited investors.
Remember that all investments carry risk and you never want to put all your eggs in one basket. Balancing REIT investments with other assets—like stocks and bonds—can be a great way to diversify your portfolio and protect your capital from market fluctuations.
Here’s to making the right decisions on your path to financial freedom!