Streitwise review
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 9.5% 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.- Choose Streitwise if you’re in the market for real estate investments with a low minimum deposit.
- Look elsewhere if you’d prefer a diverse real estate portfolio with a long investment history.
2%
Annual fee
8% to 9.5%
Average return
How does Streitwise work?
Streitwise is a non-publicly traded real estate investment trust (REIT) that specifically invests in commercial real estate. Each investor is a partial owner of the properties the trust buys. The trust then pays out quarterly dividends to its shareholders, which come with potential tax implications.
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.
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 $2,522.50 minimum investment offers a path for people looking to diversify their investment portfolio.
Fees and costs
Streitwise starts you off with a 3% upfront fee on your initial deposit of about $2,500 — the cost of 250 shares. Then you’ll pay an ongoing annual management fee of 2%, which is withdrawn before the dividends are paid out.
Pros and cons
Streitwise has many features that help it stand apart in the online REIT field. But its short history and small size could be a detriment to some investors.
Pros
- Low entry amount. The $2,522.50 minimum investment is a lower threshold than other REITs, which makes Streitwise more accessible for casual investors.
- Consistent yield. Streitwise has posted a historical average 9.5% annualized dividend since its inception in 2017. And that’s after all fees are deducted.
- Equity REIT. This allows your investment to immediately grow capital appreciation and allows for regular dividend income.
Cons
- 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 real estate investing platforms
See how Streitwise stacks up against other investment platforms.
How do I sign up?
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 or tap Get Started or scroll down to read more information.
- Input the required information in the encrypted page that pops up.
Eligibility
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.
Required information
You’ll need to enter the following details during the onboarding process:
- 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
How do I contact Streitwise support?
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.
- Phone: 310-288-1026
- Online chat: Available 24/7 with a chatbot
Streitwise reviews and complaints
As of May 2021, 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.
Bottom line
Streitwise is a new online REIT that’s open to almost anyone and has consistently paid out 8% to 9.5% 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.
