YieldStreet Review (2023): Should You Take Their Investment Advice?

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How Does Yieldstreet Work?

It’s now time to take the Yieldstreet review to more specific details. When examining the best ways to invest,  you need to focus on the starting amount, the risk, the specifics of the investment portfolio, and naturally –the return.

There are two requirements you need to meet in order to get started with Yieldstreet investment.

The first requirement is to have the minimum investment amount for the specific Yieldstreet offering. Minimums typically start at 2500 to 5,000 dollars. The second requirement is for investor accreditation (since Yieldstreet operates under SEC regulations). Those who meet the criteria can begin investing.

Good to Know: All of the available Yieldstreet investments are based on the company’s five main guiding policies:

  1. The debt has to be asset-based.
  2. The investment should have little correlation to the stock market.
  3. Investment asset managers need to be highly experienced.
  4. A debt has to be short-term.
  5. The targeted return that the investment offers need to fall within the eight to 20 percent range.

You can easily scroll through the Yieldstreet investment offerings to see what the website features at the time being. Depending on the specific period, there may be a limited number of options to choose among.

Pros
Many alternative investment choices: While real estate investing is an option that’s available with other crowdfunded debt platforms, at Yieldstreet, you could also invest money in litigation finance, marine vessel acquisition and aviation.
Potentially high yields: The average net internal rate of return is 11.42%. Compare that to the S&P 500, which has an average long-term return of almost 10%.
Asset-based investments: Each investment is backed by collateral, meaning it’s supported by an asset such as real estate or a legal settlement. Collateral provides a bigger safety net. If a loan defaults, Yieldstreet works with the loan’s originator to recoup as much of the principal and outstanding interest as possible, potentially through legal action.
Cons
Expensive fees: Yieldstreet charges 1% to 2% in management fees every year, depending on what you’re investing in and your account. There are also account maintenance fees, listing fees and fund expenses.
No guaranteed return: Even though you could earn a potentially higher return through Yieldstreet compared with traditional investing, you’re also not guaranteed to get any return. Even with assets backing investments through collateral, there’s still a chance that a borrower can default on their loan and you could lose your investment.
No liquidity: These investments are crafted to tie up your money for at least a few months if not a few years. They are purposely non-liquid, which might be a turnoff to investors who prefer to tap into their investments whenever they need money.
Targeted toward accredited investors: The Yieldstreet Prism Fund is for first-time or casual investors, but the company targets accredited investors, or people who have a net worth of $1 million or assets under management of $1 million or more.

Yieldstreet fees and costs

Ninja Column 1Ninja Column 2
IRA account maintenance fees$299 to $399, depending on account balance
Annual fund expenseVaries; per investment
Annual management fee1% to 2%
Prism Fund annual administrative expense0.50%

What Does Yieldstreet Offer?

Yieldstreet focuses on crowdfunded debt, a different kind of investment with an unknown amount of risk.

Most investments, like crowdfunded debt platforms, let you invest in real estate. However, with Yieldstreet, you can also invest in litigation finance, the purchase of a marine vessel, or the aviation industry.

If you invest in legal finance, you may be compensated after an event occurs (sometimes called a settlement event). You can fund someone’s lawsuit, and you’ll receive profits depending on the proportion of your investment after the case is resolved.

Types of Yieldstreet Investment, Fees and Other Considerations

Yieldstreet reviews 2020 are mainly positive and they shed light on the various investment options available.

Alternative Investments

Yieldstreet offers alternative investments. These are debt-based investment options that are secured via some kind of collateral. Thus, you will have access to loans that are backed by a tangible asset. There are three main types of investment – pre-settlement financing, real estate, and post-settlement financing.

Pre-Settlement Financing

This is essentially an advance to plaintiffs during legal proceedings. Pre-settlement financing usually occurs in the beginning of the legal process, before the two parties involved reach an agreement, and sign a settlement.

Post-Settlement Financing

As the name suggests, this type of financing occurs after a legal case has been closed. Post-settlement financing occurs while the plaintiff is awaiting their recovery.

Fees and Charges

Opening your Yieldstreet account is free of charge. There is a management fee on all offerings. It ranges between one and four percent of the offering. An additional fee applies to the loan originator that will be listing on Yieldstreet. The target return is displayed on the website for all of the Yieldstreet offerings.

Payout Frequency

Each type of investment will determine what the payout frequency is going to be. There are two types of payment options – interest only, and interest and principal payments. Investors will receive either monthly or quarterly payment, depending on the specifics.

If the type of investment focuses on a pre-settlement advance, for example, the payment will be event-based. Some of the Yieldstreet reviews mention the fact that the platform isn’t doing a particularly good job in terms of announcing when an event has occurred. Investors did receive money in their bank account but there wasn’t an explanation as to why the payment took place. Thus, it has been verified that Yieldstreet generates returns on investment and that these returns are made available. Some slowness in terms of communication is present but chances are that the issue will be addressed in the future.

What Are The Asset Classes Of Yieldstreet’s Alternative Investments?

  • Real estate 
  • Marine
  • Art
  • Legal
  • Commercial finance

Yieldstreet: Final Verdict

Yieldstreet has many merits. It is a legitimate investment opportunity.

The Yieldstreet team works hard to identify the best investment offerings that produce a high yield. Getting started is also easy, as long as you meet the Yieldstreet qualification requirements.

Is Yieldstreet safe? The answer depends on how you perceive risk and what your tolerance is.

The investment risk varies from one offering to another. While loans are backed by collaterals, there isn’t a yield guarantee. Yieldstreet is an excellent option but it’s probably not the best investment portal for newbies in the field.

Those who already have some experience and who are looking for diversified investment opportunities will most likely appreciate what Yieldstreet has to offer.

Do you have some experience with investment in the legal field or with Yieldstreet? How much did you make through participation in the platform?

Don’t hesitate to share your Yieldstreet experience with us in the comments below.

How to open an account with Yieldstreet

  1. Click the “Sign up now” button below and click “Get started“.
  2. Answer Yieldstreets questions about your investment goals, experience level, portfolio size and which asset classes you’re interested in and select Continue.
  3. Enter your full name, email address and create a password. Select Sign Up.
  4. If signing up as an accredited investor, indicate which criteria you fulfil and select Continue.
  5. Set up an individual account, a Yieldstreet IRA or an entity account for a business or trust.

Eligibility and required information

  • At least 18 years old
  • Valid phone number and email address
  • US residential address
  • Existing US bank account to fund your Yieldstreet account
  • Valid Social Security number
  • Date of birth

Sign up now

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