Real estate is one of the most consistently lucrative investment opportunities available, but for so long, large rental properties and commercial real estate have been limited to accredited investors and/or exclusive investment firms catering to high net worth individuals and groups.
Thanks to the expansion of fintech (financial technology) innovations, it appears the exclusivity of commercial real estate investments is going away, in favor of letting everyday investors access the profitable world of big-time real estate investing. For instance, Streitwise allows people to invest in commercial properties for as little as $1,000 upfront, and since the company is primarily web-based, they offer substantially lower fees than their non-traded REIT competitors.
If you’ve been wanting to get more active in real estate investing for just a small sum, then a platform like Streitwise might be a great addition to your investment portfolio. Here’s what they have to offer everyday investors just like you.
Commercial Real Estate Investing for Everyone
Streitwise was founded on the premise of making commercial real estate investments more accessible to the average investor, who likely don’t have tens of thousands of dollars just lying around, ready to be pumped into an office building, warehouse or other commercial property. This online-based real estate investment trust uses advanced technologies and top-of-the-line market research to determine which commercial properties and markets offer the best possible risk-return scenarios for their investors.
The company is also backed by 40+ years of combined real estate investing experience among its 3 founders, who have collectively managed real estate investments and transactions worth more than $5.4 billion over the course of their careers.
Best of all, Streitwise directly owns and operates its own commercial properties, whereas many other web-based investment platforms serve as middlemen between everyday investors and real estate property managers. This hands-on approach to asset management is nearly unparalleled in the real estate segment of the fintech industry, which arguably could lead to better performance for these assets over time.
High Rates of Return for Real Estate
According to Streitwise records, its investment properties have substantially outperformed other similar types of investments over the past several years. Since its inception, Streitwise has produced 10% dividends for its investors, whereas public REITs produced 3.79% dividends and public bonds produced 2.78% dividend yields.
Meanwhile, the internal rate of return on realized investments has surpassed 33%, which signifies the strength and quality of its investment properties and overall management strategy.
When it comes to fees, you can expect to pay 3% upfront and an ongoing 2% management fee (note: the 10% annualized dividends Streitwise produces for investors is net fees, which means the fees are deducted before dividend rates are calculated). Compare this low fee structure to the 12-15% fees that other REITs charge for asset management, acquisition, disposition, financing and performance and you’ll see why Streitwise can be so advantageous for investors who want to maximize their returns on investment without losing too much money to exorbitant fees.
Passive Income Earning Potential
Streitwise presents an excellent opportunity for investors to create passive income streams with commercial real estate investments. Dividends are disbursed to shareholders on a quarterly basis (typically averaging 10%), which means you could have a check arriving in the mail or money depositing into your bank account every 3 months while the value of the properties you invest in continues to grow.
Streitwise also offers a dividend reinvestment program to significantly accumulate more wealth for investors who opt-in. DRIPs are beneficial for investors who prefer to maximize their long-term returns instead of using dividends a source of passive income, so it’s up to you to decide what you want to do with your Streitwise dividends.
Finally, you can’t ignore the tremendous tax advantages of REITs, which allow investors to deduct up to 20% of their dividends thanks to the IRS’s “pass-through deductions.” REITs are also not subject to double taxation (in which you’d pay both your personal income tax rate and the corporate tax rate).
Should You Invest with Streitwise?
Anyone who has at least $1,000 available to invest and a desire to diversify their portfolio beyond stocks and bonds should consider investing in commercial real estate with Streitwise. The low fees, the potential for high returns, proven historical performance and passive income earning potential are ideal for everyday investors who were previously shut out of commercial investments due to the enormous entry barriers and complexity of this particular market.
Rather than having to wait several years to save for a down payment on your own rental property, you can get involved in REIT investing for as little as $1,000 upfront. Just like any investment, nothing is truly guaranteed, but investing in properties has historically outperformed stock and bond markets so don’t miss this valuable opportunity to get access to commercial property investments with Streitwise.
Disclaimer – Be sure to check out the Streitwise Offering Circular at https://streitwise.com/oc.