In the past, you typically needed lots of capital if you wanted to buy alternative asset classes like fine art, real estate, or venture capital.
However, alternative crowdfunding platforms like Yieldstreet are changing this barrier. With Yieldstreet , you can buy diversified portfolio of alternative asset classes starting with only $2,500. The platform also offers direct deals for accredited investors trying to spice up their portfolios beyond stocks and ETFs.
But purchasing alternative asset classes isn't something you must do lightly. That's why our Yieldstreet review is covering how this platform works, the pros and cons, and pricing to assist you make your decision.
What Is Yieldstreet?
Yieldstreet is just a platform that connects investors with alternative investments across asset classes such as artwork, cryptocurrency, litigation finance, real estate, and consumer finance. The organization began in 2014. Since inception, it's seen over $3 billion funded on the platform and had a 9.71% net annualized return (IRR).
The company's goal is to create alternative investments more accessible and streamlined. You are able to spend money on many different individual deals on Yieldstreet or its Prism Fund, which gives exposure to numerous asset classes.
YieldStreet also lets you create goal-based portfolios, like its income or growth portfolio model, to assist you pick assets that match your investing goals.
How Yieldstreet works
Yieldstreet gives investors the opportunity to take part in crowdfunding for alternative investments on the platform. Crowdfunding is the process of raising smaller amounts of money from a big number of people. So instead of getting anyone invest $50,000, crowdfunding allows 50 individuals to invest no less than $1,000 each to reach the same goal.
Yieldstreet also provides individual investors with opportunities to buy private structured credit deals, which really is a deal where an investor will get a minimum assured return, and the danger from the decline in earnings is protected. These deals usually are only offered to institutional investors or hedge funds, though. The platform secures investments across deals including commercial real estate, art and marine projects.
Investment minimums usually are around $10,000, which may not be best for people who don't have lots of extra money to invest beyond their IRA or brokerage account. At the time of October 2022, over $4 billion has been dedicated to their platform by having an 9.61% net annualized return, based on Yieldstreet.
Additionally it is important to note that a lot of deals on Yieldstreet are only offered to accredited investors, that the Securities and Exchange Commission (SEC) defines as people who have a net worth greater than $1 million — excluding the worth of much of your residence — or an annual income over the past 2 yrs of at the least $200,000 for individuals and over $300,000 for couples. Another option is always to hold certain certificates or credentials, such as Series 7, Series 65, and Series 82 licenses. So until you fit these criteria, you likely won't have the ability to take part in most opportunities on the platform https://centerforworklife.com/opp/real-estate/yieldstreet/.
However, in August 2020 Yieldstreet established the Prism Fund, which can be obtained to non-accredited investors. The minimum investment amount for assets within the Prism Fund is $2,500, which makes it a bit more accessible.
You can join start investing on Yieldstreet's website through Apple ID, email or Google. After choosing your sign-up method, your website will prompt you with some questions to determine if you should be an accredited investor. In the event that you meet up with the criteria, you can start tailoring your Yieldstreet dashboard to your investment preferences and needs.
The professionals of Yieldstreet include wide-ranging usage of alternative investments which can be backed by assets, providing an application of protection in case of default. Cons include the fact a lot of the offerings are only available to accredited investors and you can find only a limited number of investments available. Overall, Yieldstreet makes the absolute most sense for people who have previously exhausted other traditional investment accounts, like brokerage accounts and retirement accounts, and have larger amounts of money to place toward alternative assets.