Yieldstreet Review 2022: Is Alternative Investing Right For You?

GOBanking Rates Score

Quick take: Yieldstreet is an alternative investment platform that securitizes art, real estate, short-term notes, structured notes and supply chain finance. The company breaks down the barrier to investing in certain high-dollar markets by allowing investors to buy stocks in art and other assets for as little as $500. The platform has some drawbacks. Alternative assets are relatively illiquid, and minimum investments in some company funds are $10,000 or more, which is prohibitive for many investors.
  • Assets available
  • Liquidity
  • Costs
  • Accessibility

How did we calculate this?

Advantages

  • Relatively inexpensive exposure to high-value alternative assets
  • Reasonable fees generally range from 1% to 4% per year
  • Exposure to real estate, art, legal and supply chain investments
  • Asset-backed investments provide default protection

The inconvenients

  • Some funds have high minimum investments
  • Alternative investments are illiquid
  • Many options are only open to qualified investors

Yield Street Overview

Yieldstreet’s alternative investment platform offers investors an easy way to add private assets to their investment portfolios. The company buys art, real estate and other valuable alternative assets and creates investment funds around them. It sells shares of the assets to investors who share in the asset price appreciation and income generating capabilities.

Investors have access to a variety of assets on the platform, including art, supply chain assets, and structured notes. The company also offers Prism Fund, a multi-asset class fund that provides access to all covered assets.

Minimum investments start at just $500, but can go up to $10,000 or more on specific funds. Some funds are available to all investors, but the majority of funds on the platform are only available to accredited investors.

The fees on the platform are reasonable. The company charges annually between 1% and 4% of the amount invested by a person in exchange for its management services.

Main characteristics

The most important aspects to consider before signing up for Yieldstreet services are listed below.

Assets available

Yieldstreet offers a wide range of assets to choose from, including:

  • Real estate: Real estate offerings on the platform include investments in single and multi-family homes and commercial and industrial real estate developments.
  • Art: Yieldstreet’s art offerings allow investors to own shares of high-value works of art. However, most minimum investments in art funds are $10,000 or more.
  • Short-term notes: Short-term note issues have a target annualized return of 4%.
  • Structured notes: Yieldstreet’s structured note categories include technology, consumer and diversified portfolios. Minimum investments in these portfolios are $15,000 or more.
  • Supply chain: Investors can tap into supply chain wallets. However, minimum investments are $10,000 or more.

Yieldstreet also offers Prism Fund, which includes assets from each fund category mentioned above. Investor accreditation is not required to tap into the multi-asset portfolio, and the minimum investment is just $500.

Liquidity

Alternative investments are generally illiquid, which means that it is difficult to turn these investments into cash once they have been made. The illiquidity comes from the fact that alternative investments do not have a large secondary market.

There is no secondary market on the Yieldstreet platform and investors receive payment through monthly distributions. The company’s website says optional liquidity might be available in June 2021, but that deadline has passed and there’s still no further mention of liquidity features. Investors should avoid investing money that they are not comfortable keeping locked up for an extended period of time.

Costs

Yieldstreet charges annual management fees that vary from fund to fund. Most annual management fees are between 1% and 4% of the amount invested. Yieldstreet outlines the charges in the fund description on its website.

Accessibility

All investment opportunities on Yieldstreet are accessible to accredited investors, but the average person will have accessibility issues. Most of the funds on the platform come with minimum investments of $10,000 or more, and few are available to investors who are not accredited.

Good to know

Alternative investments are illiquid – even those on platforms that offer secondary markets. Never invest the money you will need in the short term in assets like art, real estate or fine wine.

Competing options

Non-accredited investors who want more options can consider looking into the Yieldstreet competitors listed below.

masterpieces

Masterworks is an alternative investment platform focused on the sale of securitized works of art. The platform does not require investor accreditation to purchase shares, and there is no minimum investment amount required – the minimum investment depends on the paint. Additionally, Masterworks offers a secondary market to help combat the liquidity issues associated with investing in alternative assets.

Wine

Vint is an alternative investment platform that provides access to securitized fine wine. The platform secures premium wine bottle collections, allowing investors to tap into stable returns in the wine market with the peace of mind offered by Securities and Exchange Commission regulations. Shares start at just $25 and there are no annual fees.

How to register

Follow the steps below to sign up for Yieldstreet:

Begin

  1. Click the pink “Register” button in the upper right corner of the company’s website.
  2. Sign up using Google, Apple or your email address.
  3. Answer a few short questions about yourself.

Once you have completed all the steps, you can start investing on Yieldstreet.

Is Yieldstreet right for you?

Yieldstreet is best for accredited high net worth investors, as the vast majority of offerings on its platform are only available to accredited investors and require significant minimum investments.

Final grip

Yieldstreet is a great way for accredited investors to diversify their investment portfolios. However, smaller retail investors will likely be better served by one of the firm’s competitors.

FAQs

It’s normal to have questions about an investment product before diving in. Check out the answers to some of the most frequently asked questions below.
  • Can you lose money with Yieldstreet?
    • All investments involve risk, and Yieldstreet is no exception. For example, if you invest in a real estate fund focused on a shopping complex and the tenants of the complex fail to pay their rent, the fund may default, resulting in a loss of some or all of your investment.
    • Investors should do their research before making any investment on the Yieldstreet platform or elsewhere to reduce their risk of incurring losses.
  • What is Yieldstreet Investing?
    • Yieldstreet is an alternative investment platform that provides access to assets such as art and real estate. The company invests in high-value works of art and real estate and sells shares of the assets to investors. Investors then share in the price appreciation and income generated from the investments.
  • Is Yieldstreet a REIT?
    • Yieldstreet is an investment platform, not a real estate investment trust. However, the company offers various funds that act as REITs. Investors buy shares in real estate portfolios and share in the revenue generated when tenants pay rent on the assets in the portfolios.
  • How do I contact Yieldstreet?
    • Investors can contact Yieldstreet by calling 844-943-5378 or emailing [email protected] The company does not offer a “contact us” page or live chat functionality on its website. However, it offers chat functionality with its virtual partner.
  • Is Yieldstreet better than Masterworks?
    • Yieldstreet offers access to a wider range of asset classes while Masterworks only offers access to art. However, most funds on Yieldstreet are prohibitively expensive and require investor accreditation. Thus, Masterworks is a better option for investors interested in investing in art.

Editorial Note: This content is not provided by Yieldstreet. Any opinions, analyses, criticisms, evaluations or recommendations expressed in this article are those of the author alone and have not been reviewed, endorsed or otherwise endorsed by Yieldstreet.

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