Streitwise is an online real estate investment platform that aims to provide investors exposure to a portfolio of primarily cash flowing properties located in markets where they feel the risk-return characteristics are favorable. They are a real estate investment trust, whose goal is to provide a professionally managed, diversified portfolio consisting primarily of high-quality office properties. Streitwise is sponsored and managed by Tryperion Partners. Tryperion Partners has acquired and managed over $750 million in commercial real estate properties in the last decade alone.
How you make money
Streitwise is an online real estate investment platform that aims to provide investors exposure to a portfolio of primarily cash flowing properties located in markets where they feel the risk-return characteristics are favorable. By investing in a Streitwise REIT, you earn income from the distribution of dividends and potential appreciation of the underlying properties. Dividends are paid on a quarterly basis. Once you are an investor you can opt into dividend reinvestment. Streitwise investors can also now invest using Bitcoin or Ethereum, along with standard options such as ACH (bank), check, or wire. They have now had 17 straight quarterly distributions that hit at their target return range, with every dividend payout over 8%. Their target return indefinitely is 8-9% net of fees.
How Streitwise makes money
Streitwise applies 3% of your invested funds toward organizational and offering costs. This one-time amount does not reduce the shares you own.
Their Sponsor is paid a 2% annual management fee and is reimbursed for acquisition and operating expenses. For the on-going 2% fee, that’s taken out of the distribution and all returns quoted are net of fees. Their fund does not charge acquisition fees, servicing fees, special servicing fees, financing fees, or disposition fees.
Is it safe?
The Streitwise principals have over 40 years of combined real estate investing experience and over $5.4 billion in transactions, across market cycles. The three founding partners of Streitwise have a total of over 500,000 shares ($5 million total) invested in the REIT so their values are aligned with yours. They are not investing or administering investment in properties managed by unaffiliated third-parties. They are real estate investors first, using Streitwise as a means of raising capital, not a technology platform to raise money to invest in other groups’ real estate investments. What that means in terms of bankruptcy protection is that there is no “site” that can go bankrupt through which you would lose the ability to administer the investment. The risk that your investment would be subject to a bankruptcy would apply to a bankruptcy of the REIT itself or the Manager/Sponsor, in which case a standard market bankruptcy process would apply.
All investment documents are processed electronically on their website through technology and stock transfer agent services provided by FundAmerica and Computershare. These are both established and secure SEC-compliant platforms. This allows for an efficient and seamless investment process, while ensuring the authenticity and security of your information. Once your investment is processed and funds are received, you will be emailed a confirmation and your subscription agreement.