Yieldstreet Review [2023]: A Comprehensive Guide to Alternative Investments
Yieldstreet is revolutionizing the world of alternative investments, offering a platform that provides access to a diverse range of asset classes. This review aims to provide a comprehensive analysis of Yieldstreet, its pros and cons, and how it compares to other alternative investment platforms.
What is Yieldstreet?
Yieldstreet is an online platform that connects investors with a variety of alternative investment opportunities. 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.
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
How Yieldstreet Works
Investment Process
Yieldstreet's investment process involves sourcing deals, conducting due diligence and underwriting, and structuring the deals. The platform's stringent vetting process helps to minimize risks and identify high-potential investments.
Platform Features
Yieldstreet offers a user-friendly interface, with features such as multiple account types, investment minimums, and transparent fee structures. The platform also provides online tools and resources to help investors make informed decisions.
Benefits of Investing with Yieldstreet
Investing with Yieldstreet offers several advantages, including:
Access to alternative investments: Yieldstreet provides a gateway to a variety of alternative investments that are typically not available through traditional investment channels.
Portfolio diversification: Yieldstreet's diverse range of asset classes allows investors to spread their risk across different investments.
Targeted returns and income streams: Yieldstreet investments have the potential to generate attractive returns and regular income streams.
Transparent investment process: Yieldstreet offers a high level of transparency regarding its investment process and fees.
Risks and Considerations
Like any investment, there are risks associated with investing in Yieldstreet, such as:
Illiquid investments: Alternative investments may be less liquid than traditional investments like stocks and bonds.
High minimum investment requirements: Yieldstreet may require higher minimum investments than other platforms.
Performance risk: The performance of Yieldstreet investments may not meet expectations.
Yieldstreet Performance and Track Record
Yieldstreet has a strong track record, with historical returns averaging between 8-15% per annum. The platform's default rates and loss ratios are also relatively low, demonstrating the effectiveness of their due diligence process.
Yieldstreet Competitors
Fundrise
Summary: Fundrise is a leading real estate crowdfunding platform that offers diversified real estate investment opportunities.
Pros and Cons:
Pros: Low minimum investment, diversified offerings, and strong historical performance.
Cons: Limited to real estate investments, relatively illiquid.
Yieldstreet Comparison: Yieldstreet offers a broader range of asset classes than Fundrise, making it a more suitable option for investors seeking greater diversification. However, Fundrise may be a better option for those specifically interested in real estate investing.
Roofstock
Summary: Roofstock is an online marketplace for buying and selling single-family rental properties.
Pros and Cons:
Pros: Access to a large inventory of rental properties, transparent pricing, and a user-friendly platform.
Cons: Focused solely on single-family rental properties, requires more hands-on management compared to other investment platforms.
Yieldstreet Comparison: Yieldstreet provides a more diverse range of investment opportunities across multiple asset classes, while Roofstock focuses on single-family rental properties. For investors seeking a more passive approach to alternative investments, Yieldstreet may be a better fit. However, Roofstock could be a good choice for those interested in direct ownership of rental properties.
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
Yieldstreet is a unique platform that provides investors with access to a wide range of alternative investments. Its diverse offerings and transparent investment process make it an appealing option for those looking to diversify their portfolios and potentially achieve higher returns. It is essential, however, to carefully consider the risks associated with alternative investments and to conduct thorough research before investing.