Learn about Streitwise and all of that they have to offer for investors in this review!
Increase your wealth-building potential by diversifying your investments. This can be done through brokerage or real estate investments. It can be intimidating to step into a new field so most people tend to stray away from routes like investing and real estate.
However, more people have been entering the real estate market with the help of platforms such as Streitwise and new regulations from the SEC. Earn passive income through free cash flow, higher and more diversified returns and a hedge against inflation by getting started today.
If you’re interested in more platforms like Streitwise then be sure to check out our posts for Fundrise, Diversyfund, Landa, Groundfloor, Happynest and Crowdstreet. In addition, you can see all investment service offers here.
What is Streitwise
Not to be confused with a crowdfunding company or marketplace, Streitwise offers customers a non-traded, private real estate investment trust (REIT). The REIT already owns several leased commercial real estate properties. When you choose to invest in a REIT such as Streitwise, you are earning money two ways: through dividends from the investment (rent payments) and any appreciation in the underlying value of the commercial real estate itself (when a property is sold).
|Account Fees||3% upfront, 2% annually|
|Time Commitment||12 months|
|Accounts Supported||Individual, trusts, self-directed IRAs & 401(k)s|
|Offering Type||Equity, direct ownership|
|Property Types||Office & mixed-use|
|Regions Served||St. Louis, Indianapolis, targeted secondary markets|
|Dividend Distribution||Quarterly via check or direct deposit|
|Dividend Target||8-9% for 2020|
Unlike other REITs, Streitwise a private fund, not a publicly-traded REIT. Secondly, Streitwise is one of a handful of companies that is available to both accredited and non-accredited investors.
Streitwise focuses on buying commercial real estate assets and owning them for the long term. They look for deals in secondary markets that are strategically located close to transportation, amenities and established employers and industries.
Streitwise’s REIT is completed managed in house by an experienced team of experts. This means that it is free of unaffiliated third parties and completely transparent. Additionally, they keep debt leverage low to reduce risk and ensure stability. By selling their shares directly online, Streitwise is able to charge a fraction of the fees that other Reits charge.
As a private-REIT investor, you get benefits such as tax incentives, quarterly earnings in the form of dividends, and lower long-term capital gains tax rates when properties are sold. On top of that, you get a new 20% tax deduction of pass-through income.
Streitwise deals with 100% passive investing, this means that management makes all the decisions and handles all of the documents. As an investor, you will have no say in which commercial properties you invest in.
In addition, there is also only one REIT consisting of a few commercial properties located in two geographic areas. This results in little diversification by both asset type and location. Lastly, the investment is not liquid. Meaning that your funds will be tied up for at least a year before you have the option to cash out quarterly.
If you’re considering an entrance into the world of commercial real estate then take a look at Streitwise. The company is transparent about how they work. This helps build a sense of trust between you, the client, and the company.
For more ways to save money, then take a look at our full list of different ways to Save money today! Browse our available Discounted Gift Cards and save even more money with the Best Cash Back Shopping Portals! If you’re interested in checking out Streitwise’s competition take a look at platforms such as Fundrise, DiversyFund and CrowdStreet, which have different investment options, minimums and fee structures.
(Click here to learn more about the platform)
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