YieldStreet is an alternative, asset-based investment marketplace platform created to provide access to investments which were once only available to an elite few.
It allows you to build a collateral backed, diversified portfolio of high-yield, asset-based investments that were previously only available to accredited investors.
How Does It Work?
According to YieldStreet.com, its co-founder Milene Mehere wanted to find investment opportunities outside the stock market with real collateral and attractive yields, but realized these opportunities were nearly impossible to access because they required high minimum investments and long holding periods.
Co-founders Michael Weisz and Dennis Shields had built successful careers in identifying and funding worthy borrowers but realized that the inefficiencies of conventional capital limited their ability to fund many deserving borrowers.
Together, the three of them decided to get to work on an online marketplace that connected accredited and non-accredited investors to solid asset-based investment opportunities.
Types of Investments Offered by YieldStreet
YieldStreet promises their investors that they expertly vet all opportunities available through their platform. Their strict due diligence process and five-point investment philosophy means that they decline the overwhelming majority of investment opportunities reviewed by their company, and that only the strongest opportunities are approved.
Minimum investments through YieldStreet typically range between $10,000 to $15,000. Investors seeking alternative investments can utilize YieldStreet in several different asset classes including real estate, litigation, commercial, and consumer finance.
Of all the alternatives opportunities YieldStreet offers, litigation is perhaps the most common. In litigation, for example, plaintiffs may require only be able to meet their living expenses while awaiting the litigation of their cases through pre-settlement financing.
In this case, someone with a physical or personal injury lawsuit pending receives an advance from the finance company. Pre-litigation portfolios may contain anywhere from 50 to 300 different cases.
The second most common investment alternative available through YieldStreet is real estate. They are generally urban properties which are down cycle resilient. These types of investments are also said to have a low loan to value (LTV) ratio.
Law firm loans are another type of alternative investment offered by YieldStreet. It assists contingency law firms in funding ongoing court cases as they must wait until the end of the cases before receiving their portion of the settlement.
As an investment company, YieldStreet does not really offer their customers any kind of a Refund Policy. First and foremost, all customers of this investment platform must be aware that any money they invest does have the opportunity to be lost, even when working with a company that works hard to vet all their opportunities.
When it comes to getting your money back from an opportunity you have invested in, this will be entirely dependent on the specific investment itself. Some investments require that investors keep their money invested for longer periods of time, such as one year, while other investments will have shorter periods of time for divestment.
Customer Service Contact Info
Customers who have questions, concerns, or complaints they would like to direct to their Customer Service team can contact them by phone at 844-943-5378 or by email at [email protected] The company lists its physical address as 300 Park Avenue 15th Floor, New York, NY 10022.
Competitors and Alternatives?
If you are an accredited investor, there are many different online investment companies that will work with you to find new investing opportunities that meet your needs, whereas it is more difficult for non-accredited investors.
There are now quite a number of companies that provide opportunities for alternative investments. Here are just a few of them. Dream Funded was founded in the United States to connect investors with quality startup companies. Seed Invest, also launched in the U.S., allows individuals to invest into highly vetted startups.
Crowd2Fund is a private company in the United Kingdom which provides access to simple finance options and investment opportunities at extremely competitive rates. Katipult is another private company option, this one based in Canada, which offers crowdfunding investments.
Before embarking on your investment journey, there are a few important considerations. While YieldStreet does offer investment opportunities once available only to the super rich, there are still risks involved. Due to the nature of collateral-based investments, the risks are a bit less than those of which are non-asset-based.
Much of the risks depend upon the asset class and your personal portfolio decisions. Once this is understood, there are numerous investment opportunities with high yields available to nearly all types of investors.
Bear in mind that this should be considered a passive income stream. It isn’t wise to invest all your money into any type of investment without active and effective income. Remember, you may receive wonderfully high yield returns, but there is also the possibility of loss.
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