Discover How Streitwise Uncomplicates Your Journey into the World of Commercial Real Estate Investment.
Looking to dip your toes into the world of real estate investing? Streitwise might be a good start for you. Real estate investment can be tricky, but it offers some pretty attractive advantages like diverse investment options and a steady stream of passive income. However, it also comes with a significant hassle if you’re a landlord. Even if you were interested, you’d need a hefty amount of money to begin. So, how about an alternative?
Streitwise is one such option, offering a simpler, less hands-on approach, ideal for people who don’t want the stress of managing properties. It works through a Real Estate Investment Trust or REIT – basically, a company that owns profitable real estate. You can become a part-owner just by purchasing their shares, giving you all the pros of property investment without actually owning one. But here’s the twist – Streitwise is a private REIT, focusing on commercial real estate.
Private REITs, unlike public ones, aren’t traded openly, making them less fluid than their public counterparts. They are often riskier but also yield better returns. With Streitwise, there is a drawback that getting your investment back isn’t instant. However, it can be a great fit for those looking for sizable profits and willing to wait.
So, what about Streitwise in particular? They’ve decided to pour their resources into non-primary markets – locations that aren’t real estate hotspots but still have potential. They’ve been targeting cities like St. Louis, MO, and Carmel, IN. They’re not just aimed at the wealthy, but the average investor too who can get started with a minimum investment of $1,000. You can further invest in $500 multiples. While they’ve been known to deliver a 10% annualized return every quarter since 2017, bear in mind that no dividends are promised.
Here’s the fun part; they accept investment from everyone – individuals, companies, trusts, and even self-directed IRAs or 401(k)s. You can choose to get your dividends either by a check, bank transfer or you could choose to reinvest them.
Remember, like all good things, there are certain overheads. Streitwise charges a 3% upfront fee while starting and a 2% annual management fee. Compared to other REITs, that’s relatively low. Plus, the 10% yield they’ve managed is post-fee.
As is often the case with private REITs, your money is locked for at least the first year. Post that, you have the option to liquidate your investment quarterly. So, if you’re looking at a short-term plan, this might not be for you.
Now, while Streitwise sounds promising, it does come with limitations – they lack liquidity and currently own just two properties, which can mean a higher risk factor. Also, the high fees might be a turn-off for some investors. However, if a long-term plan is what you are after, Streitwise’s clear roadmap, accessibility to all investor types, honest historical performance, and accommodating investment requisites might be just what you’re looking for.
In any case, do your homework thoroughly before you invest. If Streitwise feels like the right fit, head over to their website and click on “start investing” to open your account in minutes. Happy investing!