Yieldstreet Review: Invest in Alternative Assets
Yieldstreet is a popular financial service that can help both generate passive income streams and diversify your investments. These are two initiatives that become increasingly important as you continue to invest and grow your portfolio.
Keep reading our Yieldstreet review to learn more about what the platform is, what it has to offer, and how Yieldstreet can help take your investing game to the next level.
- Access to a wider pool of investments than a traditional brokerage
- Steady interest payout for recurring passive income
- Diversify your portfolio to reduce risk
- Annual management fees can cost hundreds
- Investments have reduced liquidity
- Some products aren't FDIC-insured
What Is Yieldstreet?
Yieldstreet is an alternative investing platform focused on generating passive income streams for its users.
Opening a Yieldstreet account allows you to go beyond traditional asset classes like stocks and mutual funds and access alternative investment opportunities — like fine art, marine finance, and commercial and residential real estate.
Since launching in 2015, Yieldstreet has secured $278.5 million in total funding. Today, the company remains independent and operates out of its headquarters in New York City.
Yieldstreet has over $1.9 billion invested in its platform, with $1.2 billion in returned principal and interest payments, along with a net internal rate of return (IRR) of 10.75%.Get Started With Yieldstreet
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.
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 $1,000. 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.
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.
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.
Yieldstreet also offers an individual retirement account (IRA) option for long-term, tax-friendly growth. This can be a great way to diversify your retirement portfolio with alternative asset classes.
While IRAs typically charge fees for making alternative investments, you won’t have to pay any transaction fees through Yieldstreet.
The company provides access to both a traditional and a Roth IRA. And if you already have checkbook control in another IRA or want to do a rollover, the company offers conversion support for that purpose.
A Yieldstreet IRA is technically a self-directed IRA, which enables you to hold assets that can’t be held in traditional and Roth IRAs.
Signing Up and Getting Started
While some financial services apps make you jump through hoops before you can invest, this isn’t the case with Yieldstreet.
Registration is quick and painless, and you should be able to jump onboard and start investing relatively quickly.
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.Get Started With Yieldstreet
Yieldstreet doesn’t charge transaction fees. However, the company collects a management fee for all of its offerings, which ranges between 1% and 4% annually.
In addition, you have to pay annual flat expenses on a per-investment basis. These can vary from one product to the next, depending on the legal structure of the offering.
Alsom be aware that the company charges listing fees on some individual offerings.
Using the Yieldstreet Mobile App
Yieldstreet is fully accessible over both an Android device and an iPhone.
Users on both systems report the app is easy to use and navigate, providing simple mobile management for on-the-go investing. Overall, Yieldstreet is a safe and secure mobile app that you can feel comfortable using.
Of course, you can also access Yieldstreet through any internet browser if you prefer to manage your investments on your laptop or desktop.
Customer Service and Support
There are a few different ways to contact Yieldstreet if you need assistance.
The easiest way is to call the Yieldstreet support team at 844-943-5378. You can also email the company at [email protected]
Yieldstreet provides basic customer support and should be able to walk you through any issues that you experience when using the service. As an online-only service, the platform doesn’t have any physical branch locations.
So if you’re looking to invest somewhere that enables you to sit down with a human in real life, you’ll probably want to look elsewhere.
Yieldstreet Promotions for 2022
Before you sign up for Yieldstreet, be sure to check out some of the promotions the platform is running so you can get more value from the experience.
Yieldstreet and Mint promotion
Currently, Yieldstreet is running a limited-time cross-promotion with Mint by Intuit. If you happen to be using Mint to manage your finances — or if you’re looking for a new money management platform — you should check out this deal.
Mint users can access up to $500 by signing up for Yieldstreet and making a deposit. Options include a $50 bonus if you deposit at least $1,000, a $250 bonus if you deposit at least $5,000, and a $500 bonus if you deposit at least $10,000.
Yieldstreet referral program
The Yieldstreet Invitation Program rewards customers who successfully get their contacts to sign up. The company will pay you $100 per contact, with a cap of $2,000 per calendar quarter (i.e., 20 total qualifying new accounts).
So if you have a large network of people, it may be in your interest to reach out and see if they’re interested in signing up for Yieldstreet. This can be a great way to make some extra money, which you can then turn around and invest.
As a word to the wise, it’s a good idea to make sure you like Yieldstreet before recommending it to friends, family members, or colleagues. After all, your reputation is on the line.
In general, it’s best to only recommend services that you can personally vouch for — especially when recommending them to people in your network.
Yieldstreet Review Pros and Cons
- 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.
- 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.
Alternatives to Yieldstreet
If you’re looking to invest in alternative assets, there are alternative platforms to Yieldstreet that you should check out.
Fundrise is an investing platform specifically for real estate investing and REITs. This is a great option if you want to invest in commercial real estate without having to actually buy the building yourself. The company charges lower fees than average and offers a user-friendly app that is easy to learn.
PeerStreet is another great app to consider if you’re looking to invest in real estate but don’t want the hassle of managing a property. This platform lets you invest in borrower loans, which allow you to make money as renters make payments.
Cadre makes mobile real estate investing a breeze. This is an excellent option for accredited investors looking for tax-friendly opportunities.
Vinovest is a unique platform that lets you invest in fine wine. The company will research, select, acquire, and securely store wine on your behalf.
You can access the wine online or in real life at any time. This is a simple and intuitive way to invest in high-end alcohol.
Frequently Asked Questions
Can you lose money with Yieldstreet?
All investing carries a risk, and Yieldstreet is no exception. For example, a borrower may default on a loan, which could cause you to lose money.The general rule of thumb is to treat investing like gambling. In other words, don’t invest if you can’t afford to lose the money.
If you are unsure about your financial situation, consider talking to an investment advisor before putting money into a platform like Yieldstreet or any other type of broker.
Is real estate a smart investment?
The short answer is that it depends. Properties can range in quality, and it isn’t always easy to know which are worth buying and which you should pass on.
One of the nice parts about using a real estate crowdfunding platform is it saves you from having to research properties on your own. You can invest indirectly, reducing a great deal of risk.
What is an accredited investor?
An accredited investor is someone who can trade restricted securities. The Securities and Exchange Commission (SEC) considers accredited investors capable of trading without any federal protection.
It’s possible to qualify as an accredited investor if you have an annual income of at least $200,000 for two consecutive calendar years and are on track to match that amount in the current year. Alternatively, you may be recognized as an accredited investor if you have a net worth of more than $1 million.
Should I invest in alternative investments?
Only you can make this decision. It largely depends on the state of your financial portfolio.
Alternative investments can add risk to your portfolio. At the same time, they can also help you diversify and profit off different types of investments. Just keep in mind that buying alternative investments can be very difficult. It typically requires advanced subject matter expertise.
For example, if you invest in classic cars, you need to know about motor vehicles. If you invest in art and collectibles, you have to know what you’re doing or you might purchase a fake or stolen painting by accident — or something that has no value.
When you invest through a platform like Yieldstreet, you don’t have to worry quite as much about whether your investments are solid. The company handles the backend work for you. This saves time and reduces risk while increasing the chances your investments deliver the returns you’re aiming for.
The Bottom Line
Investing in alternative assets and expanding beyond the stock market can be an exciting way to increase your net worth and add greater diversification to your investment portfolio.
As a leading alternative investment platform, Yieldstreet can help you generate monthly high-yield distributions. Since there are plenty of investment options and financial products to consider, this is a popular platform for accredited and non-accredited investors alike.
But remember: Yieldstreet investments are still somewhat risky and illiquid. Make sure you know what you’re getting into before putting money down.
Whether or not Yieldstreet is a good match for your needs as an investor, I’m counting on you to make smart decisions on the road to financial freedom. Good luck!