Comparing Yieldstreet and Crowdstreet – Which is Better for Investors?

Jeremy BiberdorfBy: Jeremy Biberdorf

November 12, 2023November 12, 2023

In the alternative investment world, real estate crowdfunding has revolutionized how individuals can grow their wealth. It provides access to markets previously reserved for the affluent few. At the forefront of this transformation are innovative online platforms like Yieldstreet and Crowdstreet. These leaders in the financial tech landscape have democratized property investment. They offer a digital gateway to direct real estate deals that once demanded significant capital and insider knowledge.

Yieldstreet and Crowdstreet each present a unique set of features and services that cater to the modern investor’s appetite. With both platforms acclaimed for their distinctive investment opportunities, one question arises after comparing Yieldstreet and Crowdstreet – Which is better?

This comparative exploration dissects the intricacies of Yieldstreet and Crowdstreet, placing them side by side to unravel their strengths and limitations. Through this analysis, investors will gain insights into which platform aligns best with their investment goals, risk appetite, and financial strategy. It will guide them toward making informed decisions in the expanding realm of real estate crowdfunding.

Understanding Yieldstreet and Crowdstreet

 Yieldstreet Logo

Yieldstreet is a robust platform that extends beyond the traditional stock market. It offers an assortment of alternative investment options. Its main allure lies in providing access to asset classes typically out of reach for the average investor. This includes real estate, marine finance, and legal finance. Designed with a user-friendly interface, it caters primarily to individuals seeking to diversify their portfolios with investments uncorrelated with the stock market. They aim to mitigate risk through a broader investment spread.
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 Crowdstreet Logo

Switching the lens to Crowdstreet, this platform carves its niche within real estate crowdfunding. It allows investors to directly fund commercial real estate projects, which are handpicked and thoroughly vetted. It promises transparency and depth in investment choices. Crowdstreet’s platform is a haven for investors with a clear preference for real estate, offering them a way to invest in high-quality, institutional-grade properties selectively.
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Both platforms cater to accredited investors, a group with significant income or net worth. Yieldstreet appeals to those looking for a mix of alternative assets, while Crowdstreet focuses on those passionate about real estate ventures. Each platform shines in its own right, targeting investors eager to align their investments with specific preferences and long-term financial objectives.

Investment Opportunities Comparison

Regarding the real estate investment landscape, Yieldstreet presents a varied portfolio that includes commercial, multi-family, and single-family properties. Investors may navigate through debt investments secured by real estate. This means they lend money for property-related ventures and earn income from interest payments. Yieldstreet’s offerings stand out for their blend. They present opportunities that span from conservative to more aggressive risk levels. It aims to match the diverse appetites of its investor community.

Turning to Crowdstreet, the platform specializes in commercial real estate. It provides a conduit for investors to partake directly in equity investments. This means that investors can own a share of the property and potentially enjoy the profits from its appreciation and rental income. Crowdstreet takes pride in its stringent selection process, ensuring that only high-caliber investment opportunities make it to the marketplace. Crowdstreet’s emphasis on quality over quantity makes it a destination for those looking to invest in premium commercial properties.

When comparing Yieldstreet and Crowdstreet, one sees a contrast in approach and investment offerings. Yieldstreet’s variety allows for a broader investment strategy, possibly appealing to those looking for diverse real estate-backed debt investments. Crowdstreet, however, may resonate more with investors aiming for a targeted stake in commercial real estate with the potential for substantial returns from property appreciation. The choice between them hinges on the investor’s unique financial goals, risk tolerance, and interest in the type of real estate on offer.

Yieldstreet and Crowdstreet Features and User Experience

Investing platforms are about more than just the opportunities they offer. How they deliver those opportunities through user experience and platform features is equally crucial. Here’s how Yieldstreet and Crowdstreet stand in this regard:

Yieldstreet’s Highlights:

  • Diverse Investment Offerings: It includes an array of assets beyond real estate, like art and marine finance.
  • Educational Resources: It offers resources to help users understand complex investments.
  • Auto-Invest Feature: Yieldstreet allows automatic investment in new offerings based on predefined criteria.
  • IRA Compatibility: It enables investing through a self-directed IRA for tax advantages.
  • Minimum Investment: The platform starts from a relatively accessible point, often lower than Crowdstreet.
  • Management Fees: These vary by offering but typically range from 1-2% annually.
  • Origination Fees: Some investments may include origination fees, which are one-time costs at the start of an investment.

Crowdstreet’s Perks:

  • Curated Deals: Crowdstreet focuses on commercial real estate with a rigorous vetting process.
  • Deal Transparency: It provides detailed information on each investment opportunity.
  • Interactive Webinars: It hosts live sessions where investors can ask sponsors questions.
  • Investor Dashboard: A robust dashboard for tracking investment performance.
  • Mobile Access: While not an app, the website is mobile-friendly for investors on the go.
  • Sponsor Fees: Investors might encounter various fees charged by sponsors, such as:
    • Acquisition or disposition fees are around 2% of the purchase price.
    • Property management fees are typically 3-4% of monthly gross revenue.
    • Construction or development fees for relevant projects range from 3-5%.
  • Asset Management Fees: These ongoing fees return to the sponsor and can be 1-2% of the equity or gross revenue.

Both platforms aim for user-friendliness, with intuitive navigation and structured information that guides investors through the decision-making process. The ease of access is paramount for both, as they streamline complex investment data, making it digestible for investors of varying experience levels.

Whether it’s the click-to-invest simplicity of Yieldstreet or the detailed investment breakdowns of Crowdstreet, both platforms strive to make real estate investment a more accessible and engaging experience.

Conclusion: Comparing Yieldstreet and Crowdstreet – Which is Better?

As we wrap up our comparative journey between Yieldstreet and Crowdstreet, we must remember the diversity of factors we’ve traversed. From investment opportunities and platform features to fees, each element plays a crucial role in informing a savvy investor’s choice.

Yieldstreet shines with its broader spectrum of alternative investments, and Crowdstreet boasts an impressive array of commercial real estate ventures. Understanding the distinctive fee structures of each platform is fundamental to foreseeing your investment journey’s trajectory.

It’s pivotal to conduct thorough due diligence before committing capital to any platform. Reflecting on one’s investment goals is equally important, as is acknowledging that consulting with a financial advisor can be a wise step.

For those poised to embark on their investment voyage with Yieldstreet or Crowdstreet, it’s a click away. You can discover Yieldstreet’s possibilities here or delve into commercial real estate with Crowdstreet here. Let these platforms serve as a springboard to elevate your investment portfolio to align with your financial aspirations.
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Jeremy Biberdorf
Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He's a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.

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