Yieldstreet vs Crowdstreet
If you’ve been looking to get into a real estate investing platform then no doubt you would have heard of Yieldstreet and Crowdstreet.
Let’s take a closer look at the two below:
|Yieldstreet Is Better For:||Crowdstreet Is Better For:|
|Non-Accredited Investors||Accredited Investors|
|Low Price||No Fees|
|Long-Term Investments||Medium-Term Investments|
|Liquid Investments||Illiquid Investments|
|Moderate Risk Tolerance||High-Risk Tolerance|
|Knowledgeable Investors||Novice Investors|
Each platform offers unique features that will help you grow your investments and become a better investor.
Want to diversify with alternative investments, including real estate? Then, Yieldstreet is for you.
CrowdStreet is better suited for accredited investors who want to invest in high-quality commercial real estate projects.
There’s a little more to it than that though. Knowing which is best for you all depends on what type of investor you are.
Keep reading to find out more.
Let’s look at some comparisons:
|Minimum Investment>||$2,500 / Growth & Income REIT $5,000||$25,000|
|Available Assets||Real Estate Properties, Legal Finance, and Asset-Based Investments||Residential Properties, Office Buildings, and Tailored Real Estate Portfolios|
|Horizon Considered>||5+ Years||3 - 5 Years|
|Fees||1 – 4% Annual Management Fee||0% Investor Fee, 1 - 5% Property Sponsor Fee|
|Best Use||Private Market Investments||Commercial Properties|
|Promotion||Start Here||Start Here|
|Modest Money Overall Rating|
Yieldstreet VS Crowdstreet: Determining Factors?
Here are some things to keep in mind before choosing a real estate crowdfunding platform.
Factor 1: Minimum Investment
Every investor must consider the minimum investment required when looking for new opportunities. You don’t want to automatically be priced out of an attractive deal based on the minimum investment alone.
When it comes to Yieldstreet vs Crowdstreet, the minimum investment differs drastically.
Yieldstreet Is Preferable To Crowdstreet
- Yieldstreet requires an upfront investment of $2,500. That’s 10x lower than Crowdstreets’ minimum $25,000.
- Yieldstreet is available to investors of all economic statuses, accredited or non-accredited.
Yieldstreet: Minimum Investment
Investors of all accreditation levels can purchase the Yieldstreet Prism Fund and the Growth & Income REIT. A $2,500 initial investment is required to participate in the Yieldstreet Prism Fund.
The Growth & Income REIT requires a $5,000 initial commitment.
Yieldstreet has set reasonable minimum and maximum investment levels to attract as many accredited and non-accredited investors as possible.
Although the minimum upfront investment may differ based on many variables. They commonly start at $10,000.
Crowdstreet: Minimum Investment
The minimum real estate investment required for most deals on the Crowdstreet Marketplace is $25,000. Based on the investment option, this minimum is likely to change.
That’s no small chunk of change. So, is Crowdstreet worth it?
If you have $25,000 to invest, we believe it is.
Factor 2: Ease Of Use
There are many moving parts to real estate investment trusts (REITs). If information slips through the cracks or isn’t delivered clearly enough, it could ruin a customer’s investment experience.
Crowdstreet Is Preferable To Yieldstreet
- Crowdstreet has a fast sign-up process and easily accessible information on its website.
- When compared to Crowdstreet, Yieldstreet is geared towards more experienced investors who already understand the ins and outs of investing.
Crowdstreet: Ease Of Use
You can create a Crowdstreet profile quickly with only one email. Because Crowdstreet’s platform is only available to accredited investors, you must provide evidence that you’ve been accredited by the SEC before investing.
Once you’ve done that, the online platform features an easy-to-use scroll-down menu where you can select investments and customize a portfolio to your liking.
Read the full Crowdstreet review here.
Yieldstreet: Ease Of Use
Yieldstreet requires you to complete a brief survey indicating your familiarity with alternative investments as the first step in the registration process.
They will then determine if you are an accredited or non-accredited investor by confirming your identity and keeping track of your economic status.
The whole procedure is very time-consuming but worth it.
Factor 3: Performance
The performance history of an investment platform is very important when choosing between two competitors.
So how do they stack up?
Crowdstreet is a good place to invest if you’re looking for high returns with a track record of delivering on its promises.
Of the 709 investments offered by Crowdstreet since its inception, 153 have been fully realized, resulting in an average internal rate of return (IRR) of 18%, and a 1.55-time profit margin.
Since Yieldstreet was founded in 2017, it has funded alternative investments worth over $3 billion, with an average interest of 9.71% per year for individuals, and promising up to 25% annual returns.
Rental properties are usually evaluated using historical performance but they don’t guarantee future results.
Yieldstreet vs. Crowdstreet: The Bottom Line
Crowdstreet’s good returns on commercial real estate but high minimum investment makes it a better choice for accredited investors.
It’s worth mentioning that nonaccredited investors can still invest in Crowdstreet funds.
Yieldstreet’s Prism Fund allows nonaccredited investors to invest in non-traditional assets with a minimum of $2,500.
This makes it a great choice for beginner investors. You can read a full review of Yieldstreet here.