Streitwise sponsored this post. All opinions expressed are mine.
You know if you’ve visited this site that I am a big fan of diversifying investments to maximize wealth-building potential. Real estate is one of the many investment options.
Real estate investing is a daunting and expensive venture if you don’t know where to begin. Thanks to updated SEC regulations and crowdfunding marketing, more people can now get involved in real estate investing.
The best option is to invest in private real estate investments trusts (REITs), such as the one offered by StREITwise.
REITs offer investors the opportunity to own shares and get all of the benefits associated with real estate investment without having to own, manage, or maintain physical property.
While you may have a few options, Streitwise’s private REIT for commercial real estate is the best choice.
Table of Contents
How private REITs work
About Streitwise
Streitwise Real Estate Investing
Streitwise: How to invest
The Advantages and Disadvantages Of Streitwise
Final Thoughts
How private REITs work
Private REITs, unlike publicly traded REITs you may add to your brokerage or 401k account, are not traded.
It’s a higher-risk investment because the asset is not liquid enough to be sold immediately. These investments usually have terms that specify when you will get your money back.
This is not meant to scare anyone away but to make them aware that any investment, including REITs, comes with risks.
You should also remember that you are investing in real estate for the long term. You should not expect to become rich overnight or see huge returns.
You can get some amazing benefits from private REITs like Streitwise.
How to generate passive income
Returns that are higher and more diverse
Help hedge against inflation
Investment in REITs offers tax advantages
About Streitwise
Streitwise, a Los Angeles-based company, began operating in late 2016. The company offers REITs to individual investors.
At first glance, you might mistakenly think that the company is a crowdfunding platform for real estate. Streitwise, a REIT that offers many advantages over its competitors, is a simple way to invest in real estate.
REITs are also equity REITs.
This means that you will not only receive a portion of any capital appreciation, but also any dividends generated by the property’s cash flow.
Historical Performance
Streitwise’s historical performance is impressive.
What kind of returns can investors expect?
Streitwise has been a private REIT since 2001. They have historically paid out dividends that averaged 10%. This is how it compares with other assets of similar nature:
Dividend Yield Comparison
Regulated and secure
You want to make sure that any platform you use for investing is legal and provides you with the information and security you need. Streitwise does a fantastic job in this area.
Streitwise is regulated by Securities and Exchange Commission under Regulation A+. This regulation, part of the JOBs Act (Jobs Act), requires their team to adhere to strict reporting requirements.
They’ve also partnered with top technology companies and stock transfer agents to streamline the investment process, and ensure the security and authenticity of your personal data.
It may sound like a lot technical jargon but keeping your personal and financial information secure is a top priority.
Streitwise Real Estate Investing
When you are investing your money, it is important to make sure that the company with which you have partnered has a sound investment strategy.
Streitwise’s goal is to manage and acquire a portfolio of investments that are value-oriented.
They also select properties where they can find tenants with good credit who will pay their rent on time, and provide a steady and consistent source of dividends.
How do they select properties?
The company selects properties based on certain features such as:
Property near transportation
Nearby amenities include restaurants, shops and other local services.
Near established industries and employers
Focus on non-gateway markets with fair prices for higher dividends
The majority of what is above will make sense. However, you may be confused about the final one.
Streitwise selects properties that are owned by REITs in excellent locations. However, they may not always be located in the most popular cities or areas where people want to live.
Investors can still invest in good properties and earn high returns.
Streitwise: How to invest
Streitwise makes it easy to invest and set up a new account.
Streitwise currently allows investment from individuals, businesses, trusts and self-directed IRAs/401(k).
Streitwise requires a minimum investment of $1,000. After that, you may invest in increments of $500 or more, depending on your goals.
You can find out what they are currently offering when you’re ready to invest. You will see what is available to invest in. You can read about the REIT in detail and get some detailed analysis.
Their latest offer is a $1000 REIT that includes a $44mm three-building office park in St. Louis featuring Panera Bread’s HQ and a $32mm building with retail on the ground floor in a wealthy suburban area of Indianapolis.
Both accredited and nonaccredited investors are eligible to participate in the offerings (with certain restrictions based on their net worth).
The offer is also open to residents living outside the USA and most SDIRA custodians.
Streitwise is developing a pipeline of opportunities. They intend to create a portfolio of commercial offices in markets that they believe have favorable risk-return characteristics. These properties will be included in their offering. Here you can find more information on these properties, including financial data and media.
Fees
Understanding the fees is important for any investment platform. This can have a significant impact on your wealth and returns.
Streitwise charges a 3% upfront fee as well as a 2% ongoing management fee. Both are taken before the dividend distribution.
In the previous quarter, they distributed 10% annualized to investors, and this amount was net of fees.
Remember that other REITs can charge as much as 15% for upfront fees, asset-management fees, acquisition fees or disposition fees, financing costs, performance fees or other expenses.
Streitwise’s fee structure is simple and transparent, resulting in lower fees for their investors.
What You Can Do to Get Paid
You can earn quarterly dividends as a Streitwise investor.
With REITs, dividends are not guaranteed, but Streitwise’s track record shows that it has paid 10% annualized quarterly dividends since 2017.
Dividends can be paid by bank transfer or check, or reinvested (a popular choice).
Investors can also benefit from the long-term appreciation of equity.
Dividend Yield
The Advantages and Disadvantages Of Streitwise
You’ll always have advantages and disadvantages with an investment platform. No platform or formula is perfect, but the positives should always outweigh any negatives.
What you can expect when investing with Streitwise
Benefits
Both accredited and non-accredited Investors are eligible.
Individual accounts, trusts and self-directed IRAs can all benefit from these plans.
Target dividends of 8-9% are a strong performance compared to historical dividends of 10%.
Dividends may be deposited in your bank account or reinvested.
Researching property thoroughly and making very specific investments.
Comparable to private REITs, fees are low.
Disadvantages
Your funds are not liquid. They must be held for an entire year before you can withdraw them. Many real estate platforms require you to be tied down for several years, or pay high fees. Streitwise, on the other hand, is better.
Private REITs have lower fees, but compared to the other types of investments they are still quite high.
There are not many property investment options available at the moment.
Final Thoughts
You should always do your research to understand the way that any company handling your money will be.
Streitwise’s transparency in how they operate and make money is something I appreciate. It is important to trust that your money is working for you.
Streitwise offers accredited and non-accredited clients the opportunity to invest in Streitwise’s private REIT, and gain access to commercial real estate.
