YieldStreet Review 2023: What is YieldStreet and How Does It Work?

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Before, you typically needed a lot of capital if you wanted to invest in alternative asset classes like fine art, property, or venture capital.

However, alternative crowdfunding platforms like Yieldstreet are changing this barrier. With  Yieldstreet , you are able to choose diversified portfolio of alternative asset classes starting with only $2,500. The platform also offers direct deals for accredited investors seeking to enhance their portfolios beyond stocks and ETFs.

But investing in alternative asset classes isn’t something you should do lightly. That’s why our Yieldstreet review is covering how this platform works, the good qualities and cons, and pricing to assist you make your decision.

What is YieldStreet

YieldStreet is an alternative investment platform that provides access to investment opportunities in real estate, marine finance, legal finance, and commercial loans. It was founded in 2013 with the goal of making alternative investments accessible to a wider range of people.

Investing in alternative assets, such as real estate or legal finance, has traditionally been limited to accredited investors, or those with a net worth of at least $1 million or an annual income of $200,000. YieldStreet aims to change that by offering investment opportunities to a wider range of investors, including those who may not meet the traditional accredited investor criteria.

The YieldStreet platform is designed to be user-friendly and accessible, allowing investors to view and invest in opportunities with just a few clicks. The platform provides detailed information on each investment opportunity, including a description of the asset, the investment timeline, and the expected return. This information is intended to help investors make informed decisions about their investments.

How does Yieldstreet work?

Where a real estate crowdfunding site might allow multiple investors to purchase a part of a commercial property, earning profit from rent and the eventual sale of the building they partially own, Yieldstreet goes at it the other way around: crowdfunding the debt taken in order to finance an investment—whatever it may be.

They work to connect investors with organizers directly, working to streamline the whole process of funding a project and helping everyone involved to more quickly reach their goals. Their platform is built on the idea of mutual support—many like-minded individuals working together in order to mutually benefit and progress. While these investment opportunities were previously only accessible to the ultra-wealthy, by allowing them to be covered through crowdfunding, more individuals in more diverse financial circumstances are able to grow their wealth, reaching their goals more quickly than they could have on their own.

How to invest with Yieldstreet

Fancy adding some top-notch artistic splodges to your portfolio?

Here’s a breakdown of how to invest with Yieldstreet:

1. Sign up: To begin investing through Yieldstreet, you’ll need to create an account on the platform. The process is simple and can be completed entirely online.
2. Browse investment opportunities: Once you log in, you can browse investment opportunities on the platform—including real estate, art, legal settlements, and more.
3. Invest: If you find an investment that matches your goals and risk tolerance, you’re ready to put down some money. The investment amount can vary, but many come with a minimum of $10,000.
4. Monitor your investments: If you’re coughing up thousands, you’ll want to keep tabs on your assets. Luckily, Yieldstreet will give you regular updates on the performance of your investments and you can track the progress through your Yieldstreet account.
5. Cash out: Yieldstreet investments typically have a fixed term, ranging from several months to several years. Once the investment term is over, you can cash out your investments, receive your returns, and take a trip to Disneyland.

Pros of Yieldstreet

By now we’ve established that Yieldstreet is taking crowdfunded investments to a whole new level, bringing a group of investors into an asset arena they previously couldn’t have participated in. But is Yieldstreet safe?

Let’s dive into the specific benefits and drawbacks of this platform in order to help you more clearly understand whether or not Yieldstreet is a good investment for you. Here are the highlights:

• With Yieldstreet investors in every income bracket are able to access and participate in high-ticket investments, like those in the real estate, legal, art, marine, and commercial asset classes.
• Yieldstreet offers a selection of investment options, including their prism fund, professionally managed portfolios, as well as short-term notes, and individual offerings. Each of these has a different minimum investment.
• The prism fund is relatively accessible at $2,500 and is available to investors regardless of their accreditation status and net worth. Regardless of investment opportunities listed on the site, the prism fund is always open to new Yieldstreet users, or for existing users to buy more shares.
• Since investments on this platform are backed by assets, investors have a layer of additional protection in the event of default.
• The average annual return on Yieldstreet is 9.71% after taxes and fees, though each type of investment option yields a different amount. Short-term notes yield the lowest at 2.6%, prism funds average 8% and individual offerings can be as high as 20%.
• Yieldstreet offers investors both traditional and Roth IRAs.
• The platform does include annual management fees, but they’re relatively low compared to other online investment platforms. Depending on your investment, management fees will vary somewhere between 0% and 2.5%, and others may apply as well—read the fine print on individual investments before proceeding.
• Because of the structure of Yieldstreet, individual investors have the rare opportunity to invest in privately structured credit deals.

Cons of Yieldstreet

While that pros list is robust, there are still some less-desirable aspects of the platform to cover before you’ll be able to make a well-thought-out determination on whether or not this platform is a good fit for you. Here are some potential dealbreakers for you to weigh:

• Investments made on Yieldstreet are highly illiquid—once you put money in, it’s locked up in the investment until it reached its designated completion date. Moreover, Yieldstreet notes in their fine print that investments have the potential to go past their “target durations,” meaning you may be stuck in the investment even longer than you originally agreed to be.
• While the platform touts itself as being accessible regardless of the income of accreditation, the majority of investment opportunities on the site are only available to accredited investors, meaning you’ll need at least $1 million in net worth and proof of a minimum annual income of $200,000 ($300,000 if shared with a spouse) for the last two years in order to participate.
• Although some things, like shares to the prism fund, are available to all investors at all times, there are limited individual offerings listed at any given moment, and some say new listings are not added frequently enough.

Who is Yieldstreet best for?

Yieldstreet is like a VIP club for investors. You’ll need to have accredited investor status (unless you opt for the Prism Fund) and a pretty penny to join.

Here’s what you need to qualify as an accredited investor:

• Have a net worth of at least a million (minus your primary residence).
• Or make $200,000 a year ($300,000 with your spouse) for the past two years and expect to keep it up.

Like with any investment, if you’re willing to take some risks for the chance at big rewards, Yieldstreet is the place for you.

They offer unique asset classes that you may not find on other platforms so you can diversify your portfolio and potentially earn big bucks.

Summary

In conclusion, YieldStreet is an alternative investment platform that aims to make alternative investments accessible to a wider range of investors. The platform provides a range of investment opportunities, a focus on diversification, and access to unique investment opportunities. While investing in alternative assets can come with higher risks, YieldStreet operates in compliance with all applicable laws and regulations and actively manages its investments to help ensure the best possible outcomes for its investors.

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