This is a sponsored post written by me on behalf of Streitwise. All opinions are 100% mine.
When it comes to investing in real estate, the average investor usually thinks of rentals or property flips. Other real estate opportunities are generally out of the range of most people’s bank accounts.
Still, not everyone can afford to buy a property to rent or flip. After all, the initial investment is significant, and the returns are likely months, or even years, away.
Now, if you can come up with an initial investment amount of about $5,000, you can invest in real estate. Average investors can grow wealth through real estate investing with Streitwise.
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What to Know About Streitwise
Streitwise isn’t like crowdfunding real estate platforms that usually act as the go between for investors and real estate companies. Instead, Streitwise is an REIT, or real estate investment trust.
They pool your money with that of other investors so everyone benefits. But at the same time, they cut out the middle man because they both own and manage the investment properties.
That’s good news for you as the investor. More of the profits are passed on, allowing you to grow wealth through real estate investing.
The other great thing Streitwise does to ensure profitability is to carefully choose investment properties. Tenants are cautiously chosen using several criteria to reduce the risk of loss to investors.
Why Choose Streitwise?
There are several good reasons to invest in real estate through Streitwise.
1. They Believe in What They Are Selling
One of the first signs a company believes in what it sells is when it invest in its own product. Streitwise sponsors have invested over $5 million dollars in their own company to grow wealth through real estate investing.
2. They are High Performing
The returns you can expect when investing in real estate through Streitwise are high. Since the second quarter of 2017, investors have received ten percent of dividends after the deduction of fees.
That’s virtually unheard of with many private real estate investment companies. Private REITs often provide dividends of less than half of what Streitwise can get you. In fact, in comparison, Streitwise could earn you over 40 percent more profit than investing elsewhere.
Keep in mind that returns are not guaranteed for future quarters. For Q2 2020, Streitwise paid out 8.4 percent in dividends, showing their strength in maneuvering through the current pandemic.
3. They Charge Low Fees
Setup fees charged by Streitwise are capped at three percent, regardless of the success of their fundraising success. Other sponsors pass higher fees on to you if they don’t reach their fundraising goals.
Additionally, ongoing asset management fees are a flat two percent. And finally, transactions fees, which can be quite high with other companies, are zero with Streitwise. That’s right, zero.
All of that means more money in your pocket from your investment. There are no hidden fees, just higher profits for you to enjoy.
4. They Work to Find Good Deals
While some REITs focus on using the latest and greatest technology, Streitwise looks for good real estate deals.
As I mentioned earlier, one of the ways Streitwise works to find good deals is by choosing reliable tenants. Another is by choosing properties in strategic locations near transportation, amenities, and other established businesses.
Quality construction and moderately priced markets are other key criteria when choosing properties. Their current offering is at 55 percent leveraged with $76 AUM, and they’re actively seeking new acquisitions to add to the offering at similar numbers.
5. They Have Experience
The three founding sponsors of Streitwise have over 40 years of combined investment experience. Furthermore, they’ve conducted more than $5.4 billion in property transactions.
That’s a good track record and should make the average investor less nervous about investing with them.
6. They are Open to Non-Accredited Investors
Accredited investors are people or businesses who have met the requirements of the Securities and Exchange Commission, or SEC.
Those requirements include having a net worth of over $1 million, or earning $200,000, or more, during each of the last two years. If you’re married, the income amount raises to $300,000. You also have to prove you will make equally that much in the current year.
Why does any of this matter? Many REITs are only available to accredited investors. That limits opportunities for the non-accredited, average investor to grow money through real estate investing.
Fortunately, Streitwise is open to non-accredited investors too, like you and me. This affords us the ability to grow wealth through real estate investing at a faster rate than some other investments.
7. Initial Investments are Low
You don’t have to have tons of money to invest in an REIT with Streitwise. Shares are around $10 each, and there is a minimum of 500 shares for your first purchase. After that, there’s no minimum to buy additional shares.
Bottom Line
As you can see, there are many reasons Streitwise beats other REITs and real estate platforms. While they’ve only been around since 2017, they have a pretty good track record for returns so far.
If you want to diversify your investments and break into real estate, Streitwise can help. You can get started with a minimal initial investment and grow your wealth through real estate investing.
Would you like to get started investing in real estate? Is a lack of money holding you back?
I’m John Schmoll, a former stockbroker, MBA-grad, published finance writer, and founder of Frugal Rules.
As a veteran of the financial services industry, I’ve worked as a mutual fund administrator, banker, and stockbroker and was Series 7 and 63-licensed, but I left all that behind in 2012 to help people learn how to manage their money.
My goal is to help you gain the knowledge you need to become financially independent with personally-tested financial tools and money-saving solutions.
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