Yieldstreet Review

Previously, you typically needed plenty of capital if you wanted to purchase alternative asset classes like art work, real-estate, or venture capital.

However, alternative crowdfunding platforms like Yieldstreet are changing this barrier. With  Yieldstreet , you are able to invest in a diversified portfolio of alternative asset classes starting with only $2,500. The platform also offers direct deals for accredited investors seeking to enhance their portfolios beyond stocks and ETFs.

But investing in alternative asset classes isn't something you should do lightly. That's why our Yieldstreet review is covering how this platform works, the professionals and cons, and pricing to assist you make your decision.

What Is Yieldstreet?

Yieldstreet is just a platform that connects investors with alternative investments across asset classes such as artwork, cryptocurrency, litigation finance, real-estate, and consumer finance. The organization began in 2014. Since inception, it's seen over $3 billion funded on the platform and had a 9.71% net annualized return (IRR).

The company's goal is to make alternative investments more accessible and streamlined. You can spend money on a variety of individual deals on Yieldstreet or its Prism Fund, which provides exposure to varied asset classes.

YieldStreet also lets you create goal-based portfolios, like its income or growth portfolio model, to assist you pick assets that match your investing goals.

How Yieldstreet works

Yieldstreet gives investors the chance to take part in crowdfunding for alternative investments on the platform. Crowdfunding is the method of raising smaller levels of money from a big number of people. So instead of getting one person invest $50,000, crowdfunding allows 50 visitors to invest a minimum of $1,000 each to attain the same goal.

Yieldstreet also provides individual investors with opportunities to purchase private structured credit deals, which is really a deal where an investor will receive a minimum assured return, and the danger from a decline in earnings is protected. These deals are usually only available to institutional investors or hedge funds, though. The platform secures investments across deals including commercial real-estate, art and marine projects.

Investment minimums are usually around $10,000, which may possibly not be best for those who don't have plenty of extra money to invest beyond their IRA or brokerage account. At the time of October 2022, over $4 billion has been dedicated to their platform by having an 9.61% net annualized return, in accordance with Yieldstreet.

It is also important to note that a lot of deals on Yieldstreet are merely available to accredited investors, that your Securities and Exchange Commission (SEC) defines as people with a net worth in excess of $1 million — excluding the worthiness of your primary residence — or an annual income over the past two years of at the least $200,000 for individuals and over $300,000 for couples. Another option is always to hold certain certificates or credentials, such as for example Series 7, Series 65, and Series 82 licenses. So unless you fit these criteria, you likely won't be able to take part in most opportunities on the platform.

However, in August 2020 Yieldstreet established the Prism Fund, which is available to non-accredited investors. The minimum investment amount for assets within the Prism Fund is $2,500, rendering it a tad bit more accessible.

You can join start investing on Yieldstreet's website through Apple ID, email or Google. After choosing your sign-up method, the website will prompt you with some questions to find out if you're an accredited investor. If you meet the criteria, you can start tailoring your Yieldstreet dashboard to your investment preferences and needs.

Bottom line

The good qualities of Yieldstreet include wide-ranging usage of alternative investments which can be backed by assets, providing an application of protection in the event of default. Cons include the truth that all of the offerings are merely ready to accept accredited investors and there are merely a limited number of investments available. Overall, Yieldstreet makes the absolute most sense for those who have previously exhausted other traditional investment accounts, like brokerage accounts and retirement accounts, and have larger levels of money to put toward alternative assets.