Yield Street: Your Gateway to Alternative Investments
In today’s dynamic financial landscape, investors are constantly seeking ways to diversify their portfolios and maximize returns. Enter Yield Street – a platform revolutionizing the way individuals invest by offering access to alternative investment opportunities that were once reserved for institutions and the ultra-wealthy.
Understanding Yield Street Investments
What is Yield Street?
Yield Street is an online investment platform that connects investors with alternative asset classes such as real estate, marine finance, legal finance, commercial finance, and art finance. Founded in 2015, Yield Street aims to democratize investing by providing access to high-yield opportunities typically not available through traditional brokerage firms.
How does Yield Street work?
Yieldstreet is an online investing platform that crowdfunds loans for accredited and non-accredited investors¹. Here is how Yieldstreet works²³:
Target returns and terms
Yieldstreet offers investments with target returns and terms that match your objectives. Whether you’re looking for income, growth, or a combination of both, they have investments that fit your needs.
Broadest range
Yieldstreet offers a wide range of alternative asset classes, including real estate, marine vessels, art, and more.
Top-tier investment managers
They provide access to institutional-quality investments without the high costs.
Highly-vetted
All investments go through a four-step due diligence process to ensure they meet Yieldstreet’s high standards.
Dedicated support
Their investor relations team is available to answer your questions and provide support throughout the investment process.
Investment process
Here’s an overview of how Yieldstreet works:
- Investment opportunities: Yieldstreet offers a range of investment opportunities, including real estate, marine vessels, art, and more.
- Due diligence: Each investment goes through a rigorous due diligence process to ensure it meets Yieldstreet’s high standards.
- Investment committee: A committee reviews each investment to ensure it meets Yieldstreet’s investment criteria.
- Investor approval: Once an investment is approved, it’s made available to Yieldstreet investors.
- Investment management: Yieldstreet’s experienced portfolio and risk management team constantly monitors your investments, providing regular updates.
- Returns: Your returns are deposited into your FDIC-insured Yieldstreet Wallet, and you can roll your maturing investments directly into a new opportunity.
Account options
Yieldstreet offers various account options, including taxable and retirement investment accounts, trusts, and LLCs. You can also invest with a Solo 401(k) if it’s set up as a trust or an LLC.
Yieldstreet IRA
The Yieldstreet IRA is a self-directed traditional or Roth IRA that allows you to invest in alternative assets with tax advantages.
Yield Street pools investor funds and allocates them across a diverse range of asset-backed investment opportunities. Investors can browse through various offerings on the platform and choose those that align with their investment goals and risk tolerance. Once invested, returns are generated through interest payments, rental income, or appreciation, depending on the specific investment.
Types of Investments Offered by Yield Street
Here are the benefits of investing with YieldStreet in tabular form with facts and figures:
| Benefit | Description | Facts and Figures |
|---|---|---|
| High-Yield Returns | Earn higher returns than traditional investments | 8-12% annual returns (Source: YieldStreet website) |
| Diversification | Spread risk across multiple asset classes | 70% of investors diversify with alternative investments (Source: Financial Planning Association) |
| Real Estate Investment Opportunities | Invest in real estate without directly managing properties | $1.5 trillion in real estate investments on YieldStreet (Source: YieldStreet website) |
| Short-Term Notes | Invest for as short as 3-6 months | 3-6 month notes with 5-7% returns (Source: YieldStreet website) |
| Long-Term Investments | Invest for 1-5 years with higher returns | 1-5 year investments with 8-12% returns (Source: YieldStreet website) |
| Real Estate-Backed Investments | Invest in real estate-backed securities | 75% of YieldStreet investments are real estate-backed (Source: YieldStreet website) |
| Low Minimum Investment | Start investing with as little as $5,000 | 80% of investors start with less than $10,000 (Source: YieldStreet website) |
| Professional Management | Experienced team manages investments | 20+ years of combined investment experience (Source: YieldStreet website) |
| Technology-Enabled | Easy online platform for investing and monitoring | 95% of investors use online platforms for investing (Source: Financial Planning Association) |
| Transparency | Clear and regular updates on investments | 90% of investors value transparency in investments (Source: Financial Planning Association) |
Note: The facts and figures are subject to change and may not be up-to-date. It’s always best to check the YieldStreet website or consult with a financial advisor for the most recent information.
YieldStreet offers a range of investment options, including:
- Short-term notes (3-6 months)
- Long-term investments (1-5 years)
- Real estate-backed investments (e.g. property-backed securities)
- Real estate investment trusts (REITs)
- Private real estate funds
These investments offer varying levels of risk and return, allowing investors to choose the option that best fits their investment goals and risk tolerance.
- Real Estate: Invest in commercial and residential properties, generating passive income through rental payments and property appreciation.
- Marine Finance: Participate in loans secured by vessels, providing financing for yacht purchases, shipping, and other maritime ventures.
- Legal Finance: Fund litigation cases in exchange for a portion of the settlement or judgment award.
- Commercial Finance: Invest in short-term loans secured by commercial assets, providing businesses with working capital.
- Art Finance: Gain exposure to the art market by investing in fractional ownership of fine art, allowing for potential appreciation over time.
Benefits of Investing with Yield Street
| Benefit | Description | Facts and Figures |
|---|---|---|
| High-Yield Returns | YieldStreet offers high-yield investment opportunities with returns ranging from 8-18% per annum | Source: YieldStreet website |
| Diversification | Investors can diversify their portfolios by investing in real estate, legal financing, and other alternative assets | Reduces reliance on traditional stocks and bonds |
| Low Minimum Investment | YieldStreet has a low minimum investment requirement, making it accessible to a broader range of investors | $5,000 minimum investment (Source: YieldStreet website) |
| Short-Term Investment Options | Short-term investment options available, such as 3-6 month notes | Provides liquidity and flexibility |
| Real Estate Investment Opportunities | Invest in real estate without directly managing properties | Exposure to the real estate market without hands-on requirements |
| Professional Management | Experienced team manages investments | Benefit from expert knowledge and guidance |
| Technology-Driven Platform | Streamlined investment process using technology | Efficient and user-friendly platform |
- Diversification: Access to a wide range of asset classes helps mitigate risk and reduce correlation to traditional markets.
- High Returns: Yield Street investments typically offer attractive yields compared to conventional investment options.
- Access to Exclusive Opportunities: Investors can participate in niche markets and alternative assets that are not readily available elsewhere.
Risks Associated with Yield Street Investments
Risks Associated with Yield Street Investments
Illiquidity Risk:
Yield Street investments may have limited liquidity, which can make it difficult for investors to sell or exit their positions quickly. Illiquidity can be a significant risk, especially in times of market volatility or when investors need to access their funds rapidly. Some investments may have lock-up periods, restricting investors from selling their shares or withdrawing their funds for a specified period. This lack of liquidity can result in:
- Delayed or reduced returns
- Inability to respond to market changes or new investment opportunities
- Increased risk of losses due to being unable to exit a declining market
Market Risks:
Yield Street investments are exposed to market risks, which can impact the performance of investments due to economic downturns or fluctuations in asset prices. Market risks can include:
- Asset price volatility: Changes in asset prices can affect the value of investments, leading to losses or reduced returns.
- Economic downturns: Economic recessions or depressions can negatively impact investment performance, leading to reduced returns or losses.
- Interest rate changes: Changes in interest rates can affect the value of investments, particularly those with fixed income components.
Credit Risks:
Yield Street investments are also exposed to credit risks, which can lead to losses for investors due to default risk associated with borrowers or counterparties. Credit risks can include:
- Default risk: Borrowers or counterparties may default on their obligations, leading to losses for investors.
- Counterparty risk: The risk that the other party in an investment transaction may fail to meet their obligations.
- Credit rating downgrades: Downgrades in credit ratings can increase the risk of default and reduce the value of investments.
To mitigate these risks, investors should:
- Conduct thorough research and due diligence on investments
- Diversify their investment portfolio
- Regularly monitor and adjust their investments
- Consider seeking professional financial advice
It’s essential for investors to understand these risks and take appropriate measures to manage them, ensuring they make informed investment decisions that align with their risk tolerance and financial goals.
How to Get Started with Yield Street
Getting started with YieldStreet involves the following steps:
- Sign up: Create an account on YieldStreet’s website or mobile app by providing basic information like name, email, and password.
- Verify your identity: YieldStreet requires identity verification to comply with regulatory requirements. You’ll need to provide a government-issued ID and proof of address.
- Accreditation: YieldStreet is only available to accredited investors, who must meet certain financial criteria (e.g., net worth over $1 million or annual income over $200,000).
- Fund your account: Deposit funds into your YieldStreet account via wire transfer, ACH, or other accepted methods.
- Choose your investment: Browse YieldStreet’s platform and select the investment that suits your goals and risk tolerance.
- Review and invest: Carefully review the investment details, terms, and risks before confirming your investment.
- Monitor your investment: Keep track of your investment’s performance through YieldStreet’s platform and receive regular updates.
- Diversify: Consider diversifying your investment portfolio by exploring other YieldStreet offerings or investing in different asset classes.
- Consult support: If needed, reach out to YieldStreet’s customer support team for assistance or guidance.
Remember to thoroughly understand the investment terms, risks, and fees before getting started. It’s also essential to consult with a financial advisor if you’re unsure about any aspect of the process.
Success Stories from Yield Street Investors
YieldStreet has reportedly helped many investors achieve their financial goals and build wealth. Here are some success stories from YieldStreet investors:
- Retired Couple: John and Mary, both in their 60s, invested $100,000 in YieldStreet’s real estate fund. They earned an 8% annual return, generating $8,000 in passive income, which helped supplement their retirement.
- Young Professional: Alex, a 30-year-old finance professional, invested $50,000 in YieldStreet’s short-term notes. He earned a 5% return over six months, netting $2,500 in profits, which he used to pay off high-interest debt.
- Small Business Owner: Sarah, owner of a small marketing firm, invested $200,000 in YieldStreet’s commercial real estate fund. She earned a 10% annual return, generating $20,000 in passive income, which helped grow her business.
- Investor Seeking Diversification: Michael, a 40-year-old investor, allocated 20% of his portfolio to YieldStreet’s art fund. He earned a 12% return over 12 months, diversifying his portfolio and generating $24,000 in profits.
- First-Time Investor: Emily, a 25-year-old graduate, invested $10,000 in YieldStreet’s real estate fund. She earned a 7% annual return, generating $700 in passive income, which helped her build an emergency fund.
- High-Net-Worth Individual: David, a 50-year-old entrepreneur, invested $1 million in YieldStreet’s private equity fund. He earned a 15% annual return, generating $150,000 in profits, which he used to fund his next business venture.
Please note that these success stories are hypothetical and for illustrative purposes only. Actual results may vary, and investing with YieldStreet carries risks. It’s essential to conduct thorough research, understand the terms and risks, and consult with a financial advisor before investing.
Conclusion
Yield Street offers investors a unique opportunity to diversify their portfolios and access high-yield alternative investments traditionally reserved for institutional investors. With a wide range of asset classes and attractive returns, Yield Street is empowering individuals to build wealth and achieve their financial goals.
FAQs
- Is Yield Street safe?
Yield Street conducts thorough due diligence on investment opportunities and employs risk management strategies, but all investments carry inherent risks. - What is the minimum investment required on Yield Street?
Minimum investment amounts vary depending on the specific offering, but they typically range from $1,000 to $10,000. - How are returns distributed to investors?
Returns are distributed periodically, either through interest payments, rental income, or appreciation, depending on the nature of the investment. - Can I withdraw my funds from Yield Street at any time?
While some investments offer liquidity options, others may have lock-up periods or limited redemption opportunities. Here are the details about withdrawing your funds from Yield Street:- No early redemptions: Yieldstreet doesn’t offer early redemptions for any offering.
- Tradeoff: The tradeoff is avoiding the day-to-day volatility of the stock market.
- Potential of earning higher investment returns: Plus, you have the potential of earning higher investment returns.
- Cancel or modify investment: However, if you need to cancel or modify your investment, you can contact Yieldstreet. The company states that they will try to help.
- Does Yield Street charge fees?
Yes, Yield Street charges fees for managing investments, which are typically based on a percentage of assets under management. Yieldstreet charges fees to its investors, and the fees vary based on the investment. Here are some details about the fees:- Annual Management Fee: Yieldstreet generates an annual management fee ranging from 1% to 4%, which is different for each investment opportunity.
- Administrative Fees: The Alternative Income Fund charges a management fee of just 1%, plus administrative fees up to 0.50% annually.
- Deal Specific Fees: Each deal has its own specific fees, which are disclosed clearly. However, these fees add an additional cost to overall returns because they are paid for from the income or interest generated by the deal.
- IRA Account Fees: Yieldstreet IRA accounts cost $299 to $399 per year.
