Yieldstreet

Yieldstreet

4.4

(9 Reviews)

Lending

Yieldstreet

Yieldstreet

4.4

Lending

Yieldstreet is an investment platform that makes exclusive private market loans available to the masses. Diversify from traditional investments and boost returns with higher yield.  3 - 18% target returns. 400k+ users. $4B+ funded on the platform.

Highlights

Auto Track Available

4.5% - 12%

Asset Class Return1Y

#21 Rank

In Lending30d

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Invest from

$2.5K

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Yieldstreet Review

autor

Jessica Martel90 days ago

Diversify your investment portfolio and generate passive income – here’s everything you need to know about investing with Yieldstreet.

Claim up to $500 today!

Visit Website

Overview

Generate passive income with alternative investments and diversify your portfolio with investments starting at $500. Yieldstreet is a crowdfunding alternative investment platform that helps you invest in a wide range of asset-backed investments. Unlike most other crowdfunding platforms that focus on a particular type of asset class, Yieldstreet offers a variety of equity deals and asset-backed debt investments such as real estate investment loans, accounts receivable financing, fine art, loans backed by artwork, and litigation finance.

Things to Know

  • You make money on

    Interest & Capital appreciation

  • Fees

    1%

  • Min Investment

    $2,500

  • Payout frequency

    Monthly

  • Term of investment

    3-48 months

  • Target Return

    3% - 18%

  • Liquidity

    Moderate

  • Open to

    All Investors

  • Mobile Application

    iOS, Android

Top Perks

  • 12.44% net annual return

  • Short duration (3 months to 5 years)

  • Access to innovative income-generating products

How you make money

With Yieldstreet, you are lending money to borrowers and therefore earn frequent interest payments on your invested (or loaned) principal. Yieldstreet provides investors access to alternative investments, typically with low correlation to the stock market. They work with experienced originators who provide a loan for a project (or need) that is collateralized by an underlying asset from the associated borrower, such as a real estate property, legal settlement or shipping vessel. Their offerings currently focus on a number of alternative asset classes, including Real Estate, Legal Finance, Commercial and Consumer Finance, and Art Finance and have an IRR of 10.61% since 2015. Beside their individual offerings, as an accredited investor you have the ability to also invest in their short term notes.

 

If you are a unaccredited investor you can still participate with Yieldstreet's Prism Fund. With a single investment, the Yieldstreet Prism Fund allows you to build a fixed-income portfolio, spread across multiple asset classes selected by Yieldstreet. Currently, the Fund has holdings in five asset classes: Art, Commercial, Legal, Real Estate, and is also invested in Corporate preferred bonds. Distributions are made to investors quarterly. As of September 16, 2020, the weighted average yield of the Fund's assets, excluding cash and cash equivalents, was 9.29%.

How Yieldstreet makes money

The displayed and advertised target return for all offerings on the Yieldstreet platform are net of their management and listing fees.

 

Yieldstreet collects an on average 1-2% management fee on all offerings from investors annually. These fees are disclosed on the individual offering pages for each investment opportunity. In certain circumstances, Yieldstreet may also charge the originator a listing fee.  

 

There are also flat annual fund expenses investors are responsible for per investment (these are paid from initial interest distributions from your investment) that vary slightly depending on the legal structure of the offering (either SPV or BPDN structure).

Is it safe?

Yieldstreet has been in business since 2015 and has a community of over 225,000 members who look to alternative investments as a way to diversify their investment portfolios outside of the stock market. To date, Yieldstreet has returned over $600 million in principal and interest payments to their investors. Yieldstreet seeks to minimize risk, for example, with collateral-backed financings and sometimes personal guarantees, as described in the offering documents prepared for each investment. Yieldstreet’s specialized teams evaluate each opportunity within their respective asset class. Since inception, out of the $15B of transactions they've vetted, only $2.5B has passed their selective process to make it on to the platform. In 2020 alone, only 4% passed their process.

 

Yieldstreet is a registered investment advisor (RIA) with the SEC and makes private offerings pursuant to Regulation D 506(c), and subject to state regulation. As an RIA, Yieldstreet complies with specific SEC rules and regulations. Each SPV’s financials are audited annually by a third-party auditor, Richey May & Co., and the audit reports are made available yearly to investors in each individual investment.

 

Yieldstreet vets all prospective borrowers heavily but there is always a risk that a Borrower simply fails to repay amounts due or otherwise comply with their obligations. Despite that risk, you should be able to confidently invest with Yieldstreet thanks to their strong history, intensive vetting process, and their SEC compliance.

  • Established

    2014

  • Country Available

    US Only

  • Assets Managed

    $500M

How You're Taxed

Income Tax

Income Tax

Profits earned from P2P Lending are taxed at ordinary income tax rates. This means that profits are added to your total income for the year.

You can receive income from P2P lending tax free if you invest using certain accounts.

Reviews

4.4
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Reviews (9)
L

Lon

Works great so far, but I've really only transferred some money into our savings account at this point. Hopefully the rest of the app is just as well designed and as easy to use...

B

Bloodlord

👍

J

James

Way more asset classes than their competitors and a clean and professional experience throughout.

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