Are you in the market for a lucrative real estate investment but getting overwhelmed with the variety of available options? Perhaps, you have heard of Streitwise, reputed to be a good, low-cost entry into real estate investing. To get an overview of this platform, read this Streitwise review.
Spelled in reference to real estate investment trust (REIT), StREITwise is a REIT company that is a relative market newbie that offers investments with low minimum capital. But is it the right investment platform for you?
We’ll discuss Streitwise’s offerings, drawbacks, prospects, and comparative performance against similar REITs.
How Streitwise Works?
Streitwise is a real estate crowdfunding platform that allows investors to pool their money and invest in properties. This Los Angeles-based company was founded in 2017. To date, they have raised over $100 million from investors.
Streitwise focuses on commercial property, such as office buildings and retail centers. These properties are typically less risky than residential properties and can offer higher returns. The company also offers a variety of investment opportunities, including debt and equities.
It is an excellent choice for those looking for a hands-off investment. Once you’ve invested, the company handles all property management and upkeep. It frees up your quality time to focus on other things.
If you’re considering investing in real estate, Streitwise is worth checking out.
Who is Streitwise For?
Streitwise is the investment you’ve been searching for for a long time. The company wants investors interested in low-risk passive income, recurring cash flow, impressive returns, inflation safety, and portfolio diversification.
It is a suitable real estate investment for various investors, such as:
Are you new to REITs? Don’t worry. With Streitwise, you can invest in a professionally managed portfolio of income-producing real estate without having to go through the hassle of acquiring or managing real estate properties yourself.
- Non-Accredited Small Investors
You can invest through this platform even if you don’t have a net worth of $1 million. If you are a small investor and wish to earn on the side, Streitwise is the best option for you.
- Investors Looking for Diversification
If you wish to diversify your investment portfolio, Streitwise is the right platform for you. With a wide range of real estate offerings and flexible terms, it can help you reach your financial goals.
- Accredited Investors
Accredited investors can trust Streitwise with their money. Being an accredited investor means that a person has over $1 million in wealth (excluding the value of the primary residence) or a salary of over $200,000 per year (or $300,000 with your life partner) for the 2 years before.
Does Streitwise Have Minimal Investment Requirements?
It is simple to set up an investment account on Streitwise. All investors, accredited or not, must furnish and authenticate income and net worth information before investing.
Because of the spending limit, your total investments must be less than 10% of your net worth (excluding your property) and less than 10% of your yearly income.
The minimum investment for this deal is one of the lowest available, starting from $4,835.
What Are the Average Streitwise Returns?
Since 2017, Streitwise has generated a 9.2% annual return on average. That successful track record says volumes about the caliber of management and capability to maximize undervalued assets in emerging markets, even though past performance does not guarantee future success.
What is the Streitwise Pay-Out Schedule?
Investment returns from Streitwise mainly come from dividends paid out 10 days after the end of each financial quarter. Streitwise has recorded an average annual return of 9.1% since 2017. Investors can also opt for a Dividend Reinvestment Program, which they can automate.
Moreover, investors can profit from potential property appreciation, which can increase equities and quarterly dividends. Investors who want to liquidate their holdings don’t have to wait for 5 years like in other REIT platforms. At Streitwise, they can sell their shares after only 1 year through its shares redemption program; they also have the option to sell quarterly.
Streitwise Review: Pros and Cons
Streitwise is undoubtedly a good real estate investment company, though some risks are involved.
If you want to invest in REITs, here is a quick Streitwise review, including its pros and cons:
|Features of Streitwise
|Rating (Out of 5)
|Fees and Costs
|Customer Service Support
- Streitwise offers a minimum investment of $4,835 and additional investments at $500 increments.
- Since its launch in 2017, its yield has been consistent, i.e., 9.1% yearly.
- Unlike other REITs, it only charges 2 different fees, including a 3% deposit-upfront cost and a recurring 2% management fee. Fees are deducted before dividends are given out.
- You can select and use your dividends from the dividend reinvestment plan (DRIP) to buy more REIT shares.
- Through safe stock transfer services, all investment documentation is saved online.
- It uses 40-60% leverage, minimizing investment risk and maximizing flexibility.
- The equity REIT provides both dividend payments and property capital gains.
- The company offers high liquidity. After retaining your investments for a year (minimum) under the plan, you will be able to redeem 90% or more of them because of their Stock Repurchase Plan.
- They have a substantial investment strategy based on low-cost markets offering good quality and valuable property. Streitwise also targets certified tenants as they generate higher cash flow.
- Currently, the company has limited diversification.
- As the company is still growing and relatively new, it offers less investment history.
The Streitwise review suggests that this platform is excellent for accredited and non-accredited investors who want a passive way to invest in real estate.
Is Streitwise for Me?
Streitwise is an online real estate investment platform that helps investors earn monthly dividends by investing in commercial properties. But is it right for you?
Streitwise offers a unique opportunity to invest in commercial real estate without the hassle of traditional methods. You can review properties and choose to invest in those that fit your investment goals. Plus, everything is managed online, so you can track your progress and monitor your investments from anywhere.
Streitwise is a nice way to diversify your portfolio, as investing in multiple properties can spread your risk. And because Streitwise makes it easy to invest small amounts of money, it’s an excellent option for beginning investors.
Of course, there are some risks associated with any investment, and real estate is no exception. The value of commercial properties can go up or down, and there’s always the possibility that a tenant will default on rent or damage the property.
However, Streitwise does its best to mitigate these risks by carefully vetting properties and tenants before they’re listed on the platform.
All things considered, Streitwise is an excellent option for anyone looking to invest in commercial real estate. With its ease of use and built-in protections, Streitwise is a safe and sound way to grow your wealth.
If you’re looking for an alternative to Streitwise, there are a few different options, such as:
Fundrise is one of the best real estate investing platforms. Based in Washington, DC, it offers a wider range of options, including residential and mixed-use projects. It delivers solid results to the investors even in times of faltering.
For more information, read our full Fundrise review.
2. M1 Finance
M1 Finance takes care of your every financial need, from investing and banking to borrowing and spending.
Using our referral link, you can get a $10 bonus upon signing up. You can create a personalized strategy that M1 will automate for you, so it’s easier!
Read our complete M1 Finance review for more details.
If you are a small investor or new to investing and seeking a low-cost robo-advisor, SoFi Automated Investing is a decent option. The portfolios are constructed using inexpensive ETFs, and you won’t have to pay an annual management charge.
The best benefit is that you don’t need big bucks; you only need $1 to get going.
Acorns is a financial service that allows users to invest spare change from daily purchases into a diversified portfolio of stocks and bonds.
What sets Acorns apart from other companies is its commitment to customer service. And because they’re a technology-based company, it can offer lower fees and commissions than traditional financial institutions. Here’s more information on our complete Acorns review.
Get your $20 bonus when you sign up now.
Frequently Asked Questions (FAQs) – Streitwise Review
Is Streitwise Safe?
Streitwise is an excellent option for real estate investors who want access to professionally managed REITs. However, it may not work well with beginners since you need to meet the minimum investment amount of $5k before you can start investing through Streitwise.
What Is Streitwise’s Dividend History?
Streitwise has been generating strong, passive income cash flow for investors since its inception. From 2017 to now, it has returned an average of 9.2% through 21 quarters, with the latest payout at 8%.
How Does Streitwise Compare With Fundrise?
At this moment, Streitwise only deals in commercial real estate, such as warehouses and office buildings.
Contrarily, Fundrise offers a far wider range of investment options, as they also include the residential real estate market, like apartment buildings, besides their commercial real estate.
Conclusion – The Streitwise Review
While still a relatively new market player, Streitwise has chalked up some favorable reviews with their steady returns, low investment minimum, data transparency, and experienced management team.
Ultimately, your choice of investment rests on your financial goals and personal style as an investor. Make sure to do more research and compare Streitwise with other platforms to determine which one suits you.
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Founder of Spark Nomad, Radical FIRE, Journalist
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Education: Bachelor of Economics at Radboud University, Master in Finance at Radboud University, Minor in Economics at Chapman University.
Over 200 articles, essays, and short stories published across the web.
Experience: Marjolein Dilven is a journalist and founder of Spark Nomad, a travel platform, and Radical FIRE, a personal finance platform. Marjolein has a finance and economics background with a master’s in Finance. She has quit her job to travel the world, documenting her travels on Spark Nomad to help people plan their travels. Marjolein Dilven has written for publications like MSN, Associated Press, CNBC, Town News syndicate, and more.