One of the most common ways for people to start accumulating wealth is through real estate investments. Traditionally, this means purchasing a rental property. Following that, the profits from one property would be carried over to the next, and so forth.
Most real estate ventures require a large amount of initial money, which is the only drawback. You often need to put down 20%, probably in thousands of dollars, to buy a rental property.
Today, there are crowdfunded real estate platforms that make the process much easier and less expensive!
In this review, a real estate investing platform called Streitwise allows investors to get their hands on private real estate deals.
This review will go over Streitwise to see if it really is the best real estate investing platform out there.
You’ll learn whether real estate is the right online business for you.
And at the end, you’ll find answers to some of the most frequently asked questions regarding Streitwise and real estate in general.
Streitwise is a course that teaches you about real estate investing.
If you’ve read my other articles on real estate investing, you’ll know there are 3 primary ways to invest:
Wholesaling, buy-and-hold, and flipping.
While each has pros and cons, there is a ton of potential for success in investing in real estate.
Real estate has created some of the largest fortunes in world history.
That being said, you should take some time to seriously think about something:
Is now the best time for YOU to get into real estate investing?
Because despite the potential upside, investing in properties or land takes a lot of capital, and is very labor intensive.
That means if you:
- Have less than 3 hours per day, OR
- Aren’t sitting on $20K+ in disposable income
This may not be the best time for you to start investing in physical real estate.
Don’t get me wrong, real estate investing can be an amazing way to protect your assets while generating cash – but there’s a time and a place for it.
But there’s good news!
All you need is a system to generate the cash (& free time) you need to be ready for real estate investing.
My preferred method of getting there is by becoming a Digital Landlord
It takes the benefits of real estate investing, but removes many of the barriers (& annoyances), like:
- Small cash flow on properties
- Having to take out debt
- Dealing with repairs and upkeep
- Dealing with tenants
The cool part is that the income is mostly recurring (AKA semi-passive).
You could make anywhere from $2,000-$10,000+ per month doing it.
You can build it as big (or small) as you feel like, without the annoyances I listed above.
If that sounds interesting, you might want to think about using the Digital Rental Method.
Then, you can take the profits and start investing in physical real estate a year or two from now.
If you wanna see what Streitwise looks like on the inside, keep reading.
Streitwise Review Summary
Streitwise started with a goal to make it easy for anyone to invest in commercial real estate, especially office buildings. And they’ve done a good job of it so far.
Although they haven’t been around for very long, they have a history of more than 9% annualized returns and have had a lot of success. They will maintain their target of 8-9 percent returns.
Their redemption options have also gone above and beyond to make your investments more liquid. However, the penalties are huge in the first few years. In general, unless you have a time horizon of 5 years or more, you should not invest in a real estate venture like this.
What Is Streitwise?
Streitwise can help you diversify your portfolio by adding income-producing real estate properties.
Since 2017, the company’s mission has been to provide everyone, not just high-net-worth individuals, with access to real estate assets.
While they don’t disclose exact numbers, their 2021 prediction states that they were able to maintain their course during the pandemic and achieved the target with investor requests for redemption before 2020.
Streitwise is currently a smaller company, but they have been significantly upgrading its technology to improve the user experience.
The Streitwise website also stated that their thesis remains the same: they trust that purchasing quality, stabilized office buildings in desirable suburban-urban locations at high cap rates will yield outsized risk-adjusted returns over the long term.
Based on their investment thesis, they currently hold a portfolio of buildings around the United States. They also intend to expand into many more properties across the country in the future to continue generating returns for their investors.
Product Features Of Streitwise
$5,000 is the minimum initial investment.
Accredited investor status is not required until your stake in the REIT reaches 10% of your net worth or annual income over the previous two years.
Available investment types: Individuals, corporations, limited liability companies, trusts, and either self-directed IRAs or 401(k) plans can own them.
Redemption policy: For the first full year of ownership, you will be unable to redeem your REIT shares. However, after the first year, you can redeem 90%. After five years of ownership, this figure progressively grows to 100%.
The following is the redemption schedule:
In less than a year: There’s no redemption option.
Between one and two years: 90% of the Net Asset Value (NAV)
Between two and three years: 92.5% of the NAV
Between three and four years: 95% of the NAV
Between four and five years: 97.5% of the NAV
Five years or more: 100% of NAV
Full redemption is also available in case of the stockholder’s death or total disability. You should be informed, however, that you cannot sell your investment on prominent exchanges because it’s a non-publicly traded REIT.
Streitwise Dividend Re-Investment Plan (DRIP): Streitwise allows you to have your dividends used to buy more REIT shares, growing your investment; this is a purely optional feature.
Are REIT (Real Estate Investment Trust) Dividends Taxable?
In 2018, a law was passed that changed some of the tax benefits for companies, people with earned income, and REIT investors (in addition to other changes).
Since the amendment, REIT shareholders can now deduct up to 20% of their dividends from their taxable income. That’s a lot of cash.
Also, read the fine print because there are limits, requirements, and exceptions, just like anything else. A REIT’s depreciation expense, however, can reduce its taxable income.
This is classified as a non-cash expense in accounting and is rather prevalent in real estate investing.
Aside from the large tax savings, there are a few other things you should know regarding taxes with Streitwise, particularly when it comes to dividend distribution:
Any dividends paid from profits are taxed at the same rates as dividends paid from stocks or other investments.
Dividends from capital gains (when an investment is sold for a higher price than purchased) will be taxed at the long-term capital gains rate. Take note of this if you are receiving dividends from a REIT that is performing well.
Returns of capital dividends are not usually taxed. A capital dividend is when a corporation pays you dividends from shareholders’ equity or paid-in capital rather than from the firm’s earnings. This is a wonderful bonus because your tax liability will be smaller, allowing you to maximize future capital gains.
While great tax software like TurboTax will usually handle these complexities for you, it’s always a great idea to know what you’re in for regarding taxes and REITs. You may avoid this by opening a tax-exempt account (such as an IRA) with Streitwise and allowing your earnings to grow tax-free.
How Does Streitwise Work?
Streitwise requires a $5,000 start-up cost before you can use it. After that, you will receive 500 shares in return for an investment of around $10 per share.
Unlike many other real estate crowdfunding platforms, this platform does not require users to be accredited investors. The platform is accessible to investors of all net worth and expertise levels. But the company requires that your investment in the REIT not be more than 10% of your net worth or income from the past two years. (Net worth or earnings may be sole or joint.)
You can invest more than 10% of your income or net worth, but you must be an accredited investor.
Because Streitwise pays dividends–averaging roughly 10% per year from 2017 through 2019—you will get payments quarterly, net of investment fees. The following is a dividend history:
One of the major benefits of investing with Streitwise is that the three founders who administer the REIT have put over $5 million of their own money in the trust. That is, they have a direct vested interest in the fund’s effective administration.
Streitwise invests in commercial properties, which they aim to hold for ten years or until property values reach an acceptable level, at which point they will sell. The sale proceeds will then be dispersed to investors or invested in a new property.
Currently, the REIT has two commercial properties. The Panera Bread Headquarters is 290,000 square feet spread across three St. Louis, Missouri buildings. The Allied Solutions Building, a 142,000-square-foot mixed-use commercial building in Carmel, Indiana, is the second.
Streitwise focuses on properties that match the following requirements:
Value-oriented investments. This considers strategic location with surrounding amenities, established employment, quality construction, and long-term occupancy.
Tenants with a good credit history. They are looking for more established business tenants, such as Verizon, IBM, and Edward Jones.
Markets that do not use a gateway. This is achieved by shunning high-cost coastal locations in favor of more modestly priced markets with greater dividend returns.
Leverage is limited. To reduce the risk associated with real estate leverage, the corporation aims to keep debt levels to no more than 60% of the value of any property held.
These four investment techniques are designed to limit risk while improving dividend income and long-term capital appreciation.
Pricing And Fees At Streitwise
Streitwise charges two fees. When you make your initial deposit, you will pay a 3% upfront charge. Following that, you will pay a 2% yearly management fee, which will be deducted from your dividend income.
If dividends are paid at a rate of 12% for the year, your net return will be 10% after deducting the 2% annual management fee.
How To Register With Streitwise
To open an account with Streitwise, you must either have a bank account in the United States or be able to conduct a wire transfer. Both US citizens and foreign nationals can use the site. Anyone living outside of the United States who can make a wire transfer can invest.
You must supply the following information to open an account:
- Full name
- E-mail address
- Verify your investor status (individual, corporation, LLC, etc.)
- Indicate whether the investment is individual or joint.
- The size of your investment
- Address
- Contact information
- Social Security Number
- Birthdate
You will next be asked to specify whether you are an accredited or unaccredited investor, and you will be required to disclose both your income and net worth.
To begin investing, you must first fill out an ACH authorization form, which connects your bank account to the Streitwise investment platform. This will necessitate providing your account’s name, type, and the routing and personal account numbers associated with it.
The Computershare Investor Center will be used to purchase Streitwise shares. You’ll also be able to log in, track your portfolio, and view account statements. If you choose, you can also enroll in the Streitwise DRIP program from there.
Streitwise Safety
FundAmerica and Computershare provide stock transfer agent services that process investment documentation electronically. Both firms offer safe and SEC-compliant systems.
Mobile Accessibility
The iOS version of Streitwise is now available.
Customer Service
Monday to Friday, 9:00 a.m. to 5:00 p.m. Pacific time, customer service is available by phone, live chat, and email.
Streitwise FAQs
Here are some of the frequently asked questions about Streitwise:
Is It Possible For Non-Accredited Investors To Invest In Streitwise?
Yes, however, non-accredited investors are limited to investing no more than 10% of their net worth or yearly income, whichever is greater.
Are Real Estate Investment Trusts (REITs) Tax-Efficient?
Yes, investors can deduct up to 20% of their REIT dividends through pass-through deductions. They are also not subject to double taxation, and their tax liability can be lowered further through depreciation deductions.
What Is The Minimum Investment With Streitwise?
Streitwise increased their minimum investment amount from $1,000 (100 shares) to $5,000 (500 shares).
Is It Possible To Reinvest Your Streitwise Dividends?
Yes, Streitwise has an easy-to-enroll dividend reinvestment program. However, for IRA accounts, the enrollment paperwork must be signed by a custodian representative.
Can You Make Money With Streitwise & Commercial Real Estate?
Yes, you can! But in any business, independent financial advice is a must.
There’s a lot that comes along with real estate that many people struggle with.
Now, don’t get the wrong idea…
It’s not impossible to make money with real estate, but if you’re gonna put in the amount of grueling work to do this business (which, trust me, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.
The program that helped skyrocket many online businesses to over $40,000+ per month is so simple that making money really does become second nature.
Is Streitwise Legit?
Yes, Streitwise is legit. In fact, since 2013, Tryperion Partners, the manager, and sponsor of Streitwise and the first Streit Office REIT, has raised more than $160 million in three private funds. Before starting this company, its three founders collaborated as Canyon Capital Realty Advisors executives. For the past 30 years, this company has handled tens of billions of dollars in real estate transactions.
Alternatives To Streitwise?
Yes, there are plenty of other business models to choose from if you want to pursue making money in 2022. Here are just a few:
Is Streitwise A Scam?
So, time for the $1,000,000 question – is Streitwise a scam?
No, not technically. You can 100% make money with this program, though it’s not nearly as simple as they make it seem.
As with most businesses, there is A LOT of work to be done upfront & no guarantee of you being successful.
Not to mention the profit margins are typically pretty small.
Don’t get me wrong, I’m a big proponent of front-loading work now, so that you can reap the rewards later.
But if I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.
I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each produce $500-$2,000 checks every single month afterward (AKA recurring income).
And the cool part is that you can do it in a lot less time than 3-months (I personally did it in my first 2 weeks of using the Digital Rental Method).
Unlike physical real estate, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.
Read Our In Depth Breakdown Of The Top 5 Real EstateOpp Courses For 2024
All you need is an internet connection.
Some of my friends are Digital Rental Method that run their 6-figure businesses from:
- Camping trips at national parks
- Beachfront in Hawaii
- On the road in a camper van (with a pet pig!)
They focus on living an enjoyable life first, and focus on income second. All thanks to this program.
They can take weeks or months off, and money keeps rolling in.
Living happily is the top priority.
If the thought of living perpetually at your dream vacation spot interests you, using the Digital Rental Method might be for you!
What Is My Top Recommendation For Making Money Online In 2022?
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
It’s worth noting that I FULLY endorse real estate investing as a way to grow wealth, and that’s why I invest my own money in commercial and residential real estate.
That being said, my #1 recommendation for making real money online as a beginner is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie, or you’ve been around the block before but have never had that “big win” to propel you forward, using the Digital Rental Method is for you.
Why?
Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all-in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
Real estate investing is a FULL-TIME JOB. If you stop finding deals, your money dries up.
Ownership & Control: Unless you’re buying your properties in cash, you don’t technically own the properties – the lender does.
If you miss a single payment, the property can be taken from you.
Why pour your soul into a business that could be taken away from you at the drop of a dime?
With the Digital Rental Method, you literally own all of the assets, which means you have ultimate control.
Ongoing costs: With real estate, profit margins are actually pretty slim. Real wealth is made in owning the assets, and owning A LOT of them.
using the Digital Rental Method, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best-case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with real estate investing, you would need twice as many properties, or double your profit margins on each property. And I can guarantee you that’s a lot harder than a few clicks & a phone call.
Make Money Helping Real People: With the Digital Rental Method, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other opportunities like Streitwise, which might make you money.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.
