Considering a solid addition to your investment portfolio? Look no further than Streitwise. Unlike typical real estate crowdfunding platforms which come with increased risk, Streitwise offers an attractive option – a non-traded public real estate investment trust (REIT) that has consistently delivered high dividends and the promise of capital growth.
To draw a comparison, the returns from this REIT mirror the long-term results of the S&P 500. It’s an ideal choice for those keen on diversifying their investments beyond just stocks, and introducing commercial real estate into their equity mix. The behavior of commercial real estate as an asset class often diverges from stocks, sometimes offering profitable returns when stock markets dip.
A Closer Look at Streitwise
This online real estate venture, established in 2017, is behind the sponsorship of the real estate investment trust. It’s essential to understand that it isn’t one of the myriad real estate crowdfunding platforms. Instead, when you invest in Streitwise, you’re essentially entering an equity REIT domain. The benefits? Apart from a consistent dividend flow, investors can also revel in the capital appreciation when properties are eventually sold, without the hassle of direct property management.
A REIT is comparable to a mutual fund but centers on commercial properties, ranging from office spaces to large residential complexes. These properties, spread across varied markets, mainly focus on generating income. Additionally, investing in a REIT also offers specific tax benefits.
Streitwise’s REIT stands apart because it isn’t listed on any exchange. However, every property under the trust is directly owned. As an investor, your shares in the REIT translate to indirect ownership of these properties.
Investment Process with Streitwise
Upon investing, you’ll acquire shares of the REIT’s common stock priced at $10.19 (subject to quarterly change). Starting with a base investment for 500 shares, you can further boost your stake in increments of $500. Currently, the REIT encompasses two primary commercial properties, and the dividends have been impressive since its inception, consistently hovering between 8.4%-10% annually.
Costs and Eligibility with Streitwise
While Streitwise levies a 2% annual management fee, dividends have consistently been dispensed after deducting this cost. Unlike many platforms that necessitate an accredited investor status, Streitwise remains more accessible. You only need this status for more substantial investments.
Streitwise’s Investing Strategy
Boasting a combined experience of 40 years, Streitwise’s founders have made an indelible mark in real estate investments. Their dual role, as managers and direct investors, instills a greater sense of responsibility in their investment choices. They primarily focus on strategically located properties with established tenants, while avoiding exorbitantly priced markets and maintaining modest leverage. The general aim is to hold onto a property until its value peaks, post which it’s either sold or reinvested.
Features and Registration Details
The minimum kick-starting amount is $5,000, with scope for increments. Streitwise also offers a dividend reinvestment plan. Their secure platform, coupled with a comprehensive customer support system, ensures a smooth investing experience. Registration is a straightforward process, with US citizens and residents, as well as international investors, having the option to join.
Pros and Cons of Streitwise
Advantages:
- Open to both accredited and non-accredited investors.
- Minimum investment starts at $5,000.
- Comparable returns to the S&P 500.
- Solid investment strategy focusing on high-yield markets.
- Partners have a personal stake in the REIT, ensuring careful management.
- Higher liquidity compared to other platforms.
Drawbacks:
- Limited diversification with only one REIT and two properties.
- Relatively new in the market.
- Restricted liquidity, typical of real estate investments, but with redemption options post a year.
Is Streitwise Worth It?
Given the current buoyant stock market, it’s the opportune moment to introduce variety into your portfolio, and commercial real estate stands out as a prime choice. Streitwise offers not only consistent dividends but also capital appreciation potential. With a modest starting investment, tax benefits, and sound investment strategy, Streitwise emerges as a front-runner in the commercial real estate investment domain. The liquidity feature further bolsters its position, making it a lucrative option for seasoned and novice investors alike.
