Yieldstreet Review [2023]: A Comprehensive Guide to Alternative Investments

Updated: Oct 2

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Key Features of Yieldstreet:

Provides a platform for investing in alternative assets.
Offers a diverse range of asset categories, including real estate, marine finance, legal finance, and art.
Accessible to accredited investors.
Investments usually have a term between 1-5 years.
Provides an intuitive interface and a mobile app for ease of use.
Regular updates on investment performance.
Has a vetting process for investment opportunities.

Pros of Yieldstreet:

Allows for portfolio diversification with a wide range of asset categories.
Opportunities for potentially high returns.
Provides a high level of transparency about potential investments.
The platform's interface is user-friendly, with a good mobile app.
Active communication with investors regarding investment performance.

Cons of Yieldstreet:

Only available to accredited investors.
Minimum investments can be relatively high, which might be a barrier for some investors.
Illiquidity of investments - most investments do not have a secondary market, meaning investors generally must hold to term.
The platform charges management fees and other costs, which could impact overall returns.

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In the increasingly sophisticated financial world, alternative investments are making waves. More and more investors are looking for opportunities beyond traditional stocks, bonds, or mutual funds. This is where Yieldstreet comes into play, a leading player in the realm of alternative investments.

This Yieldstreet review will offer a comprehensive analysis of the platform, walking you through its mechanics, pros, cons, and everything in between. If you're asking, "Is Yieldstreet legit?" or "How does Yieldstreet work?", stick around, this article will answer all your questions and more.

What is Yieldstreet?

Yieldstreet is an alternative investment platform that offers a diverse range of asset classes, from real estate to art and litigation finance. With the goal of democratizing access to high yield potential investments, Yieldstreet is designed for accredited investors seeking to diversify their portfolios.

The platform was founded in 2015 by Milind Mehere and Michael Weisz, who had a vision of creating a marketplace for alternative investments that could help investors achieve portfolio diversification and access higher returns.

The beauty of these alternative assets is that they are generally uncorrelated to standard market fluctuations, offering a layer of protection during economic downturns. That said, it's crucial to remember that with high potential returns come high risks. Understanding the Yieldstreet alternative assets, doing your due diligence, and figuring out if it aligns with your risk tolerance is a vital step for any investor considering Yieldstreet investments.

The platform is primarily aimed at seasoned investors, but with this comprehensive Yieldstreet review, we aim to simplify it, making Yieldstreet for beginners an achievable prospect.

Now that we've laid the groundwork, let's dive into the specifics of Yieldstreet. What exactly are its key features, and how do they stack up against other alternative investment platforms? Let's find out!

Asset Classes Offered

Yieldstreet offers a diverse range of asset classes, including:

Real estate: Commercial, multifamily, and residential properties
Marine finance: Ship acquisitions, financing, and leasing
Art finance: Art loans and investments in fine art collections
Legal finance: Litigation financing and legal settlements
Commercial loans: Business loans and other debt investments
Private Credit: Think, short term/payday loans, only a little less seedy
Venture Capital: Just like the mysterious pros of Silicon Valley
Crypto: The news-worthy money of the future

: The news-worthy money of the future

Key Features

Unveiling the various layers of Yieldstreet, you’ll find a plethora of unique features that make it an attractive platform for alternative investing. Here's a closer look at some of them:

Investment Options

The true strength of Yieldstreet lies in its diversity of offerings. The platform provides access to a variety of investment categories, including real estate, commercial, consumer, legal, and art finance. Each investment category has its own risk and return profile, and the level of risk can vary significantly depending on the specific deal. In this regard, it's crucial to ask, "What are Yieldstreet returns like?" and assess them against your financial goals and risk appetite.

Due Diligence and Vetting Process

Yieldstreet takes a rigorous approach to vetting investment opportunities. The team conducts thorough due diligence, scrutinizing every detail of the investment offerings before making them available to investors. This process seeks to mitigate the risk of default and ensure that only high-quality investment opportunities make it to the platform.

Investment Minimums and Liquidity

Yieldstreet investments have varied minimum investment amounts, usually starting from $10,000. This makes it accessible to a wide range of investors, not just the ultra-wealthy. However, liquidity can be a concern, as these are typically long-term investments, and the secondary market for selling your stake is still developing. Therefore, considering the Yieldstreet minimum investment and the platform’s liquidity is crucial before diving in.

Transparency and Reporting

In terms of transparency, Yieldstreet offers a robust reporting system, providing investors with comprehensive details about their investments. From performance data to periodic updates, everything is at the investors' fingertips. This transparency further cements Yieldstreet's legitimacy.

The above features paint a comprehensive picture of Yieldstreet's platform, highlighting its potential benefits and the inherent risks of alternative investments. In the next section, we'll explore the user experience and navigate through the platform's layout.

User Experience and Platform Navigation

When it comes to investing, especially in alternative assets, a user-friendly experience is crucial. Yieldstreet has made significant strides in this area.

Registration and Onboarding Process

Signing up for Yieldstreet is fairly straightforward. After filling out your basic information, you need to verify your status as an accredited investor. Once that's out of the way, you're ready to browse through Yieldstreet's range of alternative investments and pick the ones that suit your financial goals.

User Interface and Ease of Navigation on the Platform

The Yieldstreet platform boasts a clean, intuitive interface, making it easy for users to navigate through various sections. Whether you're a seasoned investor or a beginner exploring Yieldstreet for beginners, the user-friendly design will undoubtedly make your journey smoother.

Availability of Mobile Apps and Their Features

For those who prefer to manage their investments on the go, Yieldstreet offers a mobile app available for both iOS and Android devices. The app mirrors the functionality of the website, providing full access to your portfolio, investment options, and real-time updates.

Customer Support Options and Responsiveness

Yieldstreet understands the importance of prompt customer support. Users can reach out via phone or email for any queries or issues. Moreover, the platform offers a comprehensive FAQ section that covers most of the basic questions about Yieldstreet investments, fees, and more.

We've explored the user experience and platform navigation of Yieldstreet. Let's now dive into the costs associated with using Yieldstreet, another critical consideration for any investor.

Fees and Costs

While Yieldstreet offers an exciting array of alternative investment opportunities, it's crucial to understand the platform's fee structure before diving in. Click here to link directly to their fees and costs page.

Overview of the Fee Structure on Yieldstreet

Yieldstreet charges management fees that typically range between 1% and 2% annually, depending on the type of investment. These fees are for the ongoing administration and management of the investments.

Investing always comes with a cost. The key is to ensure that the potential returns justify these costs. The next section of our Yieldstreet review will cover the pros and cons of the platform.

Yieldstreet Pros and Cons

Like any investment platform, Yieldstreet has its strengths and weaknesses. Understanding the Yieldstreet pros and cons can help you make a more informed investment decision.

Benefits of Investing through Yieldstreet

Diverse Portfolio Options: Yieldstreet provides access to a broad array of alternative investments, from real estate to art finance, litigation, and more.
Thorough Due Diligence: The platform conducts extensive vetting processes for its investments, offering an additional layer of reassurance for its investors.
Transparent Reporting: Yieldstreet provides investors with detailed reports about their investments, performance updates, and an easy-to-navigate dashboard.

Drawbacks or Limitations of Using Yieldstreet as an Investment Platform

Limited Liquidity: The investments on Yieldstreet are generally illiquid, meaning it may not be easy to sell your investment if you need to access your capital quickly.
High Minimum Investments: With a minimum investment starting at $5,000, it may be prohibitive for some retail investors.
Accredited Investors Only: Yieldstreet primarily caters to accredited investors, potentially limiting accessibility for some individuals.

Comparison of Yieldstreet with Other Alternative Investment Platforms

When compared to other platforms, Yieldstreet stands out for its unique investment offerings and rigorous vetting process. However, compared to some other platforms, Yieldstreet's high minimum investment and limited liquidity could be drawbacks.

Understanding the pros and cons of Yieldstreet can help guide your decision-making process. Next, let's explore some real user feedback and reviews to glean further insight into the Yieldstreet experience.

You can check out my reviews of Fundrise, Crowdstreet, and Roofstock to see how they stack up.

How to Get Started with Yieldstreet

Account Opening Process

To begin investing with Yieldstreet, follow these steps:

Create an account: Sign up on the Yieldstreet website, providing your personal information and verifying your identity.
Fund your account: Link your bank account and transfer funds to your Yieldstreet account.
Select and invest in deals: Browse available investment opportunities, review the details, and invest in those that align with your investment goals.
Monitor your investments: Track the performance of your investments through the Yieldstreet dashboard.

Conclusion

To wrap up this comprehensive Yieldstreet review, let's recap some of the key points:

Yieldstreet offers an intriguing platform for accredited investors interested in diversifying their portfolio with alternative assets. With a robust array of offerings like real estate, art finance, and litigation, it provides unique investment opportunities not typically available to individual investors.

The platform also prides itself on transparency, providing detailed investment information, updates, and performance data. However, these benefits come with certain caveats, including relatively high minimum investments and limited liquidity.

The user feedback is generally positive, pointing to the platform's varied investment options and robust vetting process as key advantages. However, potential investors should also consider common concerns like liquidity and high minimum investment requirements.

Final Assessment of Yieldstreet as an Alternative Investment Platform

So, "Is Yieldstreet legit?" The answer is a resounding yes. It's a credible platform that opens the door to a diverse range of alternative investments. But like any investment, it's not without risk. Its offerings are best suited to accredited investors with a good understanding of these risks and a long-term investment outlook.

Recommendations for Investors Considering Yieldstreet

If you're an accredited investor looking for alternative investments and you're comfortable with the associated risks, Yieldstreet could be a great platform to explore. Remember to consider the Yieldstreet pros and cons, and make sure the potential returns justify the fees and the illiquidity risk.

Our Yieldstreet review has covered a lot of ground, but as always, the final investment decision lies in your hands. It's important to do your due diligence and consider your financial goals, risk appetite, and investment horizon before diving in.

Remember, investing is not a sprint but a marathon. It's about building wealth over the long term. And with Yieldstreet's unique alternative investment offerings, you might find a few routes that align with your investment journey.