Alternative asset classes are available including real estate and art, but most offerings are limited to accredited investors.
It offers a spectrum of alternative asset classes, but high illiquidity and investment minimums may be a turn off for active traders.
- Consider Yieldstreet if you’re seeking long-term investments in alternative asset classes.
- Look elsewhere if you’re an active trader.
7% to 15%
How does Yieldstreet work?
Yieldstreet’s platform offers investors the opportunity to invest in a variety of alternative asset classes, like art, marine, legal, commercial, real estate and more. Investors can browse the Yieldstreet marketplace for individual investment offerings, short-term notes or invest in the Yieldstreet Prism Fund, a four-year fund directly managed by Yieldstreet that contains a diversified basket of investment classes.
Investors earn passive income by backing a fixed-term investment that pays interest. Terms range from six months to five years and interest is paid monthly, quarterly, or as a lump sum alongside the principal at maturity.
Most of Yieldstreet’s offerings are limited to accredited investors with the exception of its Prism Fund, which is available to anyone.
What is an accredited investor?
To be considered an accredited investor, you must meet one of the following criteria set by the Securities and Exchange Commission (SEC):
- You earned over $200,000 in each of the last two years and expect the same for this year.
- You and your spouse earned over $300,000 in each of the last two years and expect the same for this year.
- You have a net worth of at least $1 million, alone or together with your spouse, excluding the value of your primary residence.
How easy is it to use?
Multiple Google Play and Apple App Store reviews mention challenges verifying their identity during the application process, citing ID verification errors and delayed responses from customer support.
After downloading the app from Google Play or the Apple App Store, expect to provide basic personal and financial information, like your residential address, employment status and Social Security number. If you plan to invest in Yieldstreet’s single asset class offerings, be prepared to verify your accredited investor status by uploading a 1040, W2, K1 or 1099 form.
Sign up issues aside, users report that Yieldstreet’s user interface is relatively easy to navigate — although multiple app crashes have been reported.
Who is Yieldstreet best for?
The investments offered on Yieldstreet’s marketplace may be potentially well-suited to:
- Accredited investors. Yieldstreet’s fund is open to any investor, but most of its marketplace offerings are limited to accredited investors.
- Buy-and-hold investors. Investors should be prepared to stick with a Yieldstreet investment for at least six months.
While its Prism Fund is the platform’s only non-accredited investor-friendly offering, accredited investors will find a selection of asset options in Yieldstreet’s online investment marketplace. Minimums start between $1,000 to $5,000, depending on the asset, and interest is paid monthly or as a lump sum with the loan principal at maturity.
Investors seeking stocks, ETFs or any other asset more typically found on self-directed trading platforms will need to look elsewhere — Yieldstreet’s investments start with terms of six months, with some funds that span years.
Pros and cons
- Asset diversification. Yieldstreet gives investors the opportunity to diversify across a variety of asset classes, including art, real estate and commercial offerings.
- IRAs. In addition to its Prism Fund and single asset class offerings, Yieldstreet also offers a variety of IRA accounts, including Traditional, Roth and SEP IRAs.
- Illiquid. Investors must be prepared to commit to a Yieldstreet investment for at least six months.
- High minimums. Depending on the product, Yieldstreet’s investment minimums range from $1,000 to $5,000.
- Accredited investors. While anyone can invest in its Prism Fund, Yieldstreet’s individual investment offerings are limited to accredited investors.
Pricing and fees
Yieldstreet’s investment offerings can be divided into three major categories: individual investments, short-term notes and the Yieldstreet Prism Fund.
Yieldstreet’s single asset class marketplace is only open to accredited investors. It offers a variety of individual investments across a spectrum of asset classes, including consumer, commercial, real estate, art, marine and legal assets. Interest is paid monthly or as a lump sum alongside the investment principal at the time of loan maturity.
|Investment duration||6 months – 5 years|
|Distribution schedule||Monthly interest or single payment of principal and interest at maturity|
|Yieldstreet management fee||1% – 2%|
|Open to non-accredited investors||No|
Also open to accredited investors are Yieldstreet’s short-term notes, an investment product with 180-day terms that offer the opportunity for monthly interest payments. Investment minimums sit at a more manageable $1,000, and Yieldstreet states that it doesn’t charge any fees for its short-term notes.
|Investment duration||Up to 6 months|
|Distribution schedule||Monthly interest|
|Yieldstreet management fee||$0|
|Open to non-accredited investors||No|
Yieldstreet Prism Fund
The Yieldstreet Prism Fund is managed by Yieldstreet and open to accredited and non-accredited investors alike. This four-year fund was opened in March 2020 and terminates in March 2024. The fund’s holdings are spread across multiple asset classes, including art, real estate, commercial and legal assets.
|Fund termination date||March 2024|
|Annual management fee||1%|
|Annual administrative expense fee||Up to 0.5%|
|Open to non-accredited investors||Yes|
Is Yieldstreet legit?
Yieldstreet was founded in 2015 and is headquartered in New York City. As of December 2020, it isn’t a Better Business Bureau (BBB) accredited business and has no complaints on the Consumer Financial Protection Bureau (CFPB).
Yieldstreet is a registered investment advisor with the US Securities and Exchange Commission (SEC). Its banking services are provided by Evolve Bank & Trust, a member of the Federal Deposit Insurance Corporation (FDIC).
Yieldstreet reviews and complaints
Yieldstreet feedback is limited, and of the reviews we could find, investor sentiment is mixed. It lacks BBB accreditation but receives an A+ rating. It scores an average 1.75 out of 5 stars on the BBB after four customer reviews. It only has one review on its Trustpilot page and no complaints on the CFPB.
Even the mobile app feedback is a mixed bag. On Google Play, the app receives 3.8 out of 5 after 79 reviews. But in the Apple App Store, the app scores 4.4 out of 5 after 170 ratings.
Investors complain of non-performing investments falling into default, resulting in a loss of principal and earnings. The platform has also been accused of reaching out to investors who publicly posted negative feedback to withdraw their criticism. On the flip side, investors also report positive experiences of profitable deals that resulted in competitive returns.
How do I sign up?
Kickstart the sign-up process on Yieldstreet’s website:
- From Yieldstreet’s homepage, select Get started.
- Answer Yieldstreet’s questions about your investment goals, experience level, portfolio size and which asset classes you’re interested in and select Continue.
- Enter your full name, email address and create a password. Select Sign up.
- If signing up as an accredited investor, indicate which criteria you fulfill and select Continue.
- Enter your phone number and residential address. Click Continue.
- Set up an individual account, a Yieldstreet IRA or an entity account for a business or trust. To set up an individual account, you’ll need to provide your birthdate and Social Security number.
How do I contact Yieldstreet support?
Connect with Yieldstreet support by:
- Email. Send an email to email@example.com for a reply from the customer support team within one to two business days.
- Live chat. Speak to a member of the Yieldstreet team through the live chat feature on its website weekdays from 9 a.m. to 6 p.m. ET.
Compare with other real estate investing platforms
For self-directed trades, compare your platform options by features and fees to find the account that best meets your needs.
There are unique investment classes up for grabs on Yieldstreet’s marketplace. But many of its offerings are highly illiquid and only open to accredited investors.
Before you sign up, review your investment options across different platforms to find the account that best meets your goals.