Yieldstreet is an online crowdfunding platform for experienced traders to further diversify their portfolio with alternative investments like real estate, legal, and art.
Yieldstreet best suits accredited investors seeking further portfolio diversification and wealth-building opportunities. It's not ideal for beginners or risk-averse traders, as investing in real estate and similar investment products carries significant risk and is generally illiquid.
Business Insider's personal finance team compared Yieldstreet to the best real estate investing apps. We found it an industry leader in holistic real estate investing and alternative investment opportunities.
Pros and Cons
Yieldstreet Pros
- Alternative investment opportunities for investors regardless of accreditation status
- Wide range of alternative investment options, including exposure to private equity, legal, art, and real estate
- Mobile trading app
Yieldstreet Cons
- High fees compared to competitors
- Must have an account to view a majority of Yieldstreet's offerings
- Most investments are highly illiquid
- Non-accredited investors are limited to Yieldstreet's Alternative Income Fund
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Pros
Cons
Yieldstreet is best for experienced, high-income/high-net-worth investors, but folks who don't have six figures to invest in should look elsewhere. Yieldstreet is one of the best real estate investing apps for folks interested in real estate and alternative investments.
Yieldstreet- Consider it if: You're a high-net-worth investor interested in diversifying your investments across real estate and other alternative assets.
- Awards: Listed on CB Insights' Fintech 250 ranking as a Top Fintech Startup
Compare Yieldstreet
$10
0.85% for real estate (additional 1% and $125 for IRAs)
Pros
Cons
Fundrise is one of the best real estate investing apps for non-accredited investors looking for affordable crowdfunding investment options. The platform accepts clients regardless of annual income or net worth.
Fundrise- Consider it if: You're looking for an easy and inexpensive way to start investing in real estate.
- Awards: Listed in Forbes Fintech 50 list twice
$5,000 (minimums can also range between $10,000 and $20,000)
Varies; typically 0.5% (EquityMultiple also charges annual administrative expense fee of $30-$70)
Pros
Cons
EquityMultiple is one of the best real estate investing apps for accredited investors. It offers commercial real estate assets, senior debt, equity, and preferred equity.
EquityMultiple- Consider it if: You're an accredited investor looking to invest at least $5,000 into commercial real estate.
$25,000
0% investors; 1-5% fee for sponsors; 0.25% to 2.5% tailored portfolios
Pros
Cons
CrowdStreet is one of the best real estate investing apps for accredited investors who want access to commercial real estate-backed equity and debt investment opportunties.
CrowdStreet- Consider it if: You're an accredited investor with at least $25,000 to set aside for multiple years.
- Awards: Listed on Forbes' Best Startup Employers list for 2021
Overview
Yieldstreet offers a diversified private market portfolio of vetted investment opportunities that prioritize income, capital preservation, and growth. Curated portfolio recommendations are from third-party managers who employ a holistic wealth-building and risk-management approach.
Yieldstreet primarily caters to experienced, accredited investors who can invest large sums of cash in non-traditional investment opportunities like venture capital, private credit, and structured notes. To be an accredited investor, you have to have an income of $200,000 or more or have a net worth exceeding $1 million.
Accredited investors can generate passive income with Yieldstreet's entire collection of alternative asset classes, including the platform's automated fund, Yieldstreet 360 Managed Portfolios, which provides exposure to the private market through risk-adjusted asset allocations.
If you are a non-accredited investor, you are limited to Yieldstreet's Alternative Income Fund, which generates income quarterly through private market investments.
You can contact Yieldstreet's customer support team via online chat, phone call, or email. The company also has a comprehensive FAQs page that explains how the platform works, how to set up an account, manage your portfolio, and raise capital.
Yieldstreet's mobile app has a 4.6/5 rating on the Apple Store and a 4/5 rating on Google Play.
Ways to Invest
With Yieldstreet, you can invest in real estate, art, multi-asset class funds, private equity, transportation, cryptocurrency, venture capital, private credit, legal settlements, and short-term notes. Investment minimums, terms, and IRA eligibility vary by asset type.
When reviewing fund options, Yieldstreet is transparent about what's involved with each investment, the underlying strategy, the total offering size, risks, and expected return. Yieldstreet also pre-vets all investments with its four-step due diligence process.
However, Yieldstreet's fund options are only available for a set period and are first-come, first-served. If you're too slow, you may miss investment opportunities.
You can invest in three asset types that derive different returns:
Equity
This high-return, high-risk asset type primarily generates returns from either price appreciation or the underlying assets' capital gains. For example, the Art Equity Fund V invests in unique artworks from mid-career and (re)emerging artists in the hope that the works will appreciate in value over time. It has a $15,000 minimum investment requirement and a monthly closing cadence over a five-year term.
Credit
For lower returns and risk, this asset type is primarily focused on short-term investments for increased liquidity. It derives returns from income generated from a contractual stream of cash flows. For example, the Short Term Note Series CXXVIII provides monthly interest payments over a nine-month term for a $10,000 minimum investment.
Other
Returns from investments that derive from both contractual income and price appreciation/capital gains. For example, the ST Income Notes Diversified Portfolio XLVI is a diversified portfolio of three different income notes that each reference different underlying stocks with varying characteristics to help mitigate the risk of investing in each underlying asset. It has a $15,000 minimum investment requirement and a nine-month term.
Remember that you'll be subject to a lock-up period before getting your capital back from Yieldstreet, which can significantly limit your liquidity. A lock-up period is a window during which investors cannot sell or redeem shares of a specific investment. Depending on the investment, this can range from three months to five years.
Most funds show a positive return. However, Yieldstreet is clear that not every investment works out, so thoroughly review the risks involved when deciding if it makes sense for your investment goals.
Yieldstreet Alternative Income Fund
The Yieldstreet Alternative Income Fund (formerly the Yieldstreet Prism Fund) is the only investment option available for all investors regardless of accreditation status. This diverse private market fund is designed to generate income through quarterly distributions. The minimum investment is $10,000.
The fund combines 30+ income-generating alternative asset classes — including private credit, real estate, and money market funds — for broad market exposure and capital appreciation.
While the Alternative Income Fund works like a mutual fund in many ways, there are some important differences. Your investment is not highly liquid. That means you can't just sell your shares if you need the cash for something else. If you invest in this fund, it's important to understand that your funds are tied up for several years outside planned quarterly distributions.
Investors in Nebraska and North Dakota do not have access to this fund.
Yieldstreet 360 Managed Portfolios
Accredited investors can invest in the platform's automated Yieldstreet 360 Managed Portfolios for exposure to private market investments, including private credit, private equity, and real estate. Core investments of the 360 Managed Portfolio are provided from third-party asset managers Carlyle, StepStone, and Goldman Sachs.
For a $25,000 investment minimum, you can invest in one of the following portfolio strategies:
- Income: This strategy focuses on generating income with a lower return/risk asset allocation. It primarily invests in the Carlyle Tactical Credit Fund (88%), the Goldman Sachs Real Estate Diversified Income Fund (10%), and cash (2%).
- Balanced: This moderate return/risk strategy focuses on generating income with capital appreciation. It invests in Carlyle Tactical Credit Fund (43%), StepStone Private Markets (45%), Goldman Sachs Real Estate Diversified Income Fund (10%), and cash (2%).
- Growth: A higher return/risk strategy that focuses on capital appreciation by investing in StepStone Private Markets (54%), Carlyle Tactical Credit Fund (34%), Goldman Sachs Real Estate Diversified Income Fund (10%), and cash (2%).
After one year, you can start taking distributions. On your Yieldstreet dashboard, you get access to monthly statements, NAV updates, and in-depth quarterly insights of your portfolio's performance.
Yieldstreet IRA Accounts
Yieldstreet partnered with IRA custodian Equity Trust so investors can add private market investments to self-directed IRAs for higher returns and decreased market volatility. More than 85% of Yieldstreet's alternative investment products, including select real estate funds, private credit, structured notes, and private equity, are IRA eligible.
You can open a self-directed IRA (traditional, Roth, SEP, or SIMPLE) directly through Equity Trust or Yieldstreet. Equity Trust's concierge team can also handle retirement plan transfers and rollovers. Yieldstreet is also offering a reduced account fee (as little as 0.09% annually) for members.
Fees
Yieldstreet requires a $10,000 minimum to start investing. Annual management fees range from 0% to 2.5%, depending on what you're invested in.
Yieldstreet's Alternative Income Fund has a total annual expense ratio of 3.74%, a 1% annual management fee, an estimated annual leverage expense fee of 1.22%, a subsidiary 1.02% tax expense, a maximum annual administrative expense fee of 0.5%, and an adjusted annual expense ratio of 2.8%.
Yieldstreet 360 Managed Portfolios requires a $25,000 minimum investment. It charges a flat 1.25% advisory fee and nearly 0.175% in expenses.
Equity Trust self-directed IRA requires a $500 minimum investment.
Trustworthiness and Security
Yieldstreet secures your account and personal information through site-wide data encryption with a minimum of 128-bit encryption. Account-level and transaction-level security measures can detect potential fraudulent activity and prevent account takeovers. Identity information (including SSN, Trust Agreements, and government ID) is stored by Yieldstreet's third-party providers, Footprint and Plaid, for Know Your Customer (KYC) purposes. KYC is a verification process used by financial institutions to identity clients and prevent fraudulent activity.
Yieldstreet has an A+ rating with the Better Business Bureau.
In 2022, the SEC filed charges against Yieldstreet for allegedly failing to disclose important information to investors, resulting in a significant loss of funds. Yieldstreet neither admitted nor denied these allegations but settled the lawsuit on September 12, 2023, paying a penalty of over $1.9 million in fees. Yieldstreet also agreed to pay a cash fund of up to $6.2 million to affected investors.
Alternatives
Here's how Yieldstreet compares to similar platforms.
Fundrise
$10
0.85% for real estate (additional 1% and $125 for IRAs)
Pros
Cons
Fundrise is one of the best real estate investing apps for non-accredited investors looking for affordable crowdfunding investment options. The platform accepts clients regardless of annual income or net worth.
Fundrise- Consider it if: You're looking for an easy and inexpensive way to start investing in real estate.
- Awards: Listed in Forbes Fintech 50 list twice
Similar to Yieldstreet, Fundrise is a top real estate investing platform offering a similar selection of asset classes. But that's where the similarities end. Unlike Yieldstreet, which offers a wide range of alternative investments like art and cryptocurrency, Fundrise only offers real estate, venture capital, and private credit.
Fundrise is primarily for non-accredited investors who want to further diversify their stock portfolios with electronic REITs and similar funds. You only need $10 to start investing with Fundrise.
Although Yieldstreet technically accepts non-accredited investors, they'll be limited to Yieldstreet's Alternative Income Fund.
Accredited investors interested in building wealth and diversifying their investment portfolios across various alternative investments should consider Yieldstreet over Fundrise.
However, non-accredited investors and beginner real estate investors are better off with Fundrise. Fundrise caters to less-experienced real estate investors through its low investment minimums and fees.
CrowdStreet
$25,000
0% investors; 1-5% fee for sponsors; 0.25% to 2.5% tailored portfolios
Pros
Cons
CrowdStreet is one of the best real estate investing apps for accredited investors who want access to commercial real estate-backed equity and debt investment opportunties.
CrowdStreet- Consider it if: You're an accredited investor with at least $25,000 to set aside for multiple years.
- Awards: Listed on Forbes' Best Startup Employers list for 2021
Yieldstreet and CrowdStreet both offer a wide range of alternative investments. CrowdStreet is best for wealthy and sophisticated real estate investors interested in investing in single-sponsor funds, individual deals, and managed portfolios. CrowdStreet has a high $25,000 minimum investment.
If you are accredited and an expert real estate investor, CrowdStreet offers a greater number of resources, offerings, and investment flexibility.
Yieldstreet is a better fit if you have less experience in real estate investing or seek exposure to other alternative investments like art and private credit.
Similarly, if you are a non-accredited investor, Yieldstreet is best; Crowdstreet is exclusive to accredited investors. Although Yieldstreet mainly caters to accredited investors, anyone can still invest in the Alternative Income Fund for broad market exposure and quarterly distributions.
Why You Should Trust Us
We examined Yieldstreet using Business Insider's rating methodology for investing platforms to compare and examine account types, pricing, investment options, and overall customer experience when reviewing investing platforms. Platforms are given a rating between 1 and 5.
Real estate investing platforms offer multiple assets, trading tools, fees, and other resources. Some platforms are better for more advanced or active investors, while others may better suit beginners and passive investors. Yieldstreet was evaluated, focusing on how it performed in each category.
Business Insider's Overall Yieldstreet Rating
| Feature | Insider rating (out of 5) |
| Fees | 3.50 |
| Investment selection | 4.50 |
| Access | 3.00 |
| Ethics | 4.00 |
| Customer support | 4.50 |
| Liquidity | 3.00 |
| Overall score | 3.78 |
FAQs
Is Yieldstreet safe?
Yieldstreet is a safe and legitimate real estate and alternative investment platform that protects accounts and user information through data encryption software and KYC protocols. However, real estate investing is a high-risk investment with the potential for large losses.
What are the fees on Yieldstreet?
Fees on Yieldstreet vary depending on the funds you choose to invest in, but minimum investment generally ranges from $10,000 to $25,000, with annual management fees from 0% to 2.5%. Yieldstreet is transparent about its fee structure, so you can review each fund before investing.
Can I invest in Yieldstreet if I'm not an accredited investor?
Yes, you can invest in Yieldstreet if you're not an accredited investor. Although Yieldstreet primarily caters to accredited investors, non-accredited investors can invest in its Alternative Income Fund for a minimum of $10,000.
