Discover the Simplicity of Commercial Real Estate Investments with Streitwise.
Thinking about investing but not sure where to start? Want to dip your toes into real estate but don’t want to deal with all the hassles of being a landlord? Streitwise might be the solution you’re looking for.
Investing in different areas is vital, but if you’re on the hunt for something that brings both variety and regular income, real estate is a good bet. Savvy investors love property since it’s not tied to the stock market and it can bring in steady cash from rentals. But buying property of your own takes a hefty investment and comes with its own headaches.
Streitwise offers a simpler way. They provide a chance to invest in commercial property by buying shares in a Real Estate Investment Trust (REIT). You’ve probably heard of stocks or bonds, right? At its simplest, a REIT is just a company that owns and manages real estate, and you can buy shares in it. No need to save up to buy your own building!
The difference with Streitwise is that they’re a private REIT, meaning they’re not traded on the open market. The focus is on commercial real estate, and even though a private REIT has more risk and isn’t as easily sold off as a publicly traded one, they typically pay higher returns. Also, this type of investing comes under oversight by the SEC.
Streitwise is open to anyone, accredited investors and everyday folks alike. Investing in commercial real estate used to be only for the filthy rich. But with Streitwise, you can start off with just $1,000 and add to it in $500 increments. They offer quarterly dividends, and although there’s no guarantee, they’ve been consistently paying 10% annual dividends every quarter since mid-2017. As for added benefits, you could potentially earn from long-term growth, plus you can decide to have your dividends paid back to you or reinvested.
Understand, though, that there are fees. You’ll be hit with a 3% initial fee and then a 2% annual management fee. But remember, this is a long-term plan and the 10% dividend you’re getting is after those fees have been deducted.
One key thing to bear in mind is that your money is not immediately accessible. You can’t withdraw funds in your first year, and after that, you can only cash out quarterly. If you might need that money in a hurry, this isn’t the investment for you. Also, being in it for the long haul makes the upfront fee less of a hit over time.
All investment options have their pros and cons. Streitwise’s big plusses include being open for all investors, showing strong performance, offering the chance for passive income, and having a clear strategic direction. On the downside, it lacks liquidity and could have higher fees compared to other kinds of investment. Finally, they currently only have two properties, which can be concerning from a risk standpoint.
Don’t forget to take some time and research before you put your money into any investment. However, if Streitwise does sound like a match for you, you can sign up on their website and get started in no time. Happy investing!
