This REIT offers a low-cost entry into real estate investing, but its small size might not suit all investors.Streitwise, is a real estate investment trust that offers a gateway into the world of real estate investing. Its consistent dividends are around 8% to 10% and it has low and transparent fees. But it has only been around since 2017, so it doesn’t offer much market history to base future projections.
Minimum deposit to open
8% to 10%
Who is Streitwise best for?
Consistent dividends and company transparency might make Streitwise a good real estate investment for many types of investors.
- Newcomers to REITs. The low fees and transparent real estate investments might be attractive for people just starting out in real estate investing.
- Small investors. Nonaccredited investors with less than $1 million in net worth or less than $200k annual income can still buy into Streitwise.
- Investors looking to diversify. The $1,000 minimum investment offers a path for people looking to diversify their investment portfolio.
How does Streitwise work?
Streitwise specifically invests in commercial real estate. As a real estate investment trust, each investor is a partial owner of the properties the trust buys. The trust then pays out quarterly dividends to its shareholders.
Streitwise’s investment strategy is to avoid risk. It aims to invest in properties with longevity and creditworthy tenants in nongateway markets. This means it targets growing commercial locations in low-priced areas.
What are the benefits of Streitwise?
Streitwise has many features that help it stand apart in the online REIT field.
- Low entry amount. The $1,000 minimum investment is a lower threshold than other REITs, which makes Streitwise more accessible for casual investors.
- Consistent yield. Despite only being in business since 2017, Streitwise has posted a 10% annualized dividend.
- Equity REIT. This allows your investment to immediately grow capital appreciation and allows for regular dividend income.
- Transparent fees. There’s a 3% upfront fee on your initial deposit and then a 2% ongoing management fee, withdrawn before the dividends are paid out.
What to watch out for
Its short history and small size could be a detriment to some investors.
- Short investment history. With only a few years under its belt, Streitwise doesn’t offer much historical footing — though the real estate investment industry overall is quite stable.
- Lack of real estate diversity. The REIT portfolio is just two locations: an office park in St. Louis, Missouri and a building and parking garage in Carmel, Indiana — though it’s looking to expand.
- Five-year wait for 100% redemption. There’s an initial one-year lockout period on redeeming your funds. Redeem after the first year for 90%, with an increase to 100% starting in the fifth year.
Compare with other investment platforms
Streitwise reviews and complaints
As of October 2020, the Better Business Bureau gives Streitwise an A+ rating, though it’s not an accredited BBB business. Partly due to its young history, there are no complaints or reviews on either the BBB’s website, Trustpilot or the Consumer Financial Protection Bureau.
It generally has a positive reputation online, with no complaints about customer service or a lack of transparency.
How do I get started?
You can get started on Streitwise by visiting its website on either your computer or phone.
- Go to the Streitwise homepage and click on Start Investing on the top menu.
- Click on Invest Today or scroll down to read more information.
- Input the required information in the encrypted page that pops up.
- Full legal name
- Email address
- Investing as a company, trust, individual or IRA
- Investment amount
- Number of shares
- Select ACH or wire transfer for funding
Streitwise is open to both accredited and nonaccredited investors. Though, nonaccredited investors may only invest up to 10% of either total net worth or annual income.
Streitwise customer service
Its preferred method of communication is email, and has no phone numbers listed on its website. For general inquiries, you can submit a contact form on their website and a representative will email you information.
- Online chat: Available 24/7 with a chatbot
Streitwise is a new online REIT that’s open to almost anyone and has consistently paid out 8% to 10% dividends. It’s selective in its markets, though its small property portfolio and short operating history could turn away some investors. Low minimum investment amounts help make it accessible for newcomers to REITs. To find the right real estate investment for you, compare other online providers.