An Abbreviated Streitwise Review

Streitwise Review

Streitwise is a public real estate investment company that provides REIT (Real estate investment trust) investment opportunities to investors from all financial backgrounds. Offering a simplified approach to real estate investment, the company has provided its investors with an average annualized return of 9.2% for the last 21 quarters.

Streitwise is best for…

Investors with at least $5,000 and five years to spare. Like a few other REIT investment companies, Streitwise is open to both accredited and non-accredited investors. It does require investors to hold onto their shares for a minimum of one year before redeeming them (at a penalty). After five years, the shares can be redeemed at full value.

Pros & Cons

ProsCons
Strong, consistent historical returns$5,000+ minimum investment
Open to accredited and non-accredited investorsFive-year waiting period for full share redemption
Straightforward fee structureStreitwise is less than six years old
Available for international investorsMobile app for iOS only
Supports individual, company, trust, SDIRA, and 401(k) investments 

Minimum investment

To create a Streitwise account, you must purchase a minimum of 500 shares. Since the price per share varies over time, the exact minimum investment required will change as well. Once you’ve purchased your initial 500 shares, you can continue to invest further in $500 increments. You can also automate your account to reinvest your dividends at the end of each financial quarter rather than withdrawing them.

Investment Opportunities

Although Streitwise has only a single REIT offering, we thought it was worth mentioning the various investment options available in this Streitwise review. Their REIT offering holds an approximate market value of $81 million, containing properties in St. Louis and Indianapolis. 

Streitwise offers individual, joint, trust, company, and SD IRA (Self-Directed Individual Retirement Account) accounts. Some (401)k plans may also be eligible, but that is ultimately up to your (401)k custodian. If unavailable, Streitwise does allow investors to roll their (401)k over into an SD IRA.

Convenience

Signing up for Streitwise is a very straightforward process, done entirely on their website. Once you complete the initial form and purchase your shares, you’ll begin the four-week escrow process. After this period has ended, you’ll receive login information for Streitwise.

You can access your Streitwise commercial real estate investment account directly from the website or the dedicated iOS app. Applications for Android, Windows, or other mobile operations systems are not available at this time.

Both the website and the app will allow you to:

  • Access your portfolio
  • See your account statements
  • Add funds to your account, 
  • Adjust your payout settings
  • Enroll in automatic dividend investing
  • Establish automated investing

Limitations

Unlike alternative real estate investment options that allow you to invest in specific properties, Streitwise has only a single REIT offering. Although—in itself—this does give you a mini portfolio, Streitwise controls where your money is invested. This means you have to place your trust in the company and hope its investment strategies pay off. 

Streitwise has managed to maintain a 9.2% dividend average since its 2017 inception, but like any investment, this past performance doesn’t guarantee positive future results.

Additionally, your money will be locked in the REIT for a minimum of one year. After one year, you can sell your shares at 90% of their NAV (Net Asset Value) via the Streitwise Redemption Plan. However, it will take five years until you can sell your shares for their full NAV.

Currently, Streitwise can only be accessed via the website and the iOS app.

Reputation

Lastly, we’ll take a look at reputation in this Streitwise review. Unfortunately, there isn’t a lot of data to go on. While Streitwise has earned an “A+” for its Better Business Bureau® rating, the company isn’t accredited. Nonetheless, their records show that the company hasn’t had any major scandals, complaints, or ethical violations and is up-to-date on its required licensing.

It’s also worth noting that Streitwise was named the “#1 Real Estate Investing Service” by The Motley Fool in 2020. Unlike many other companies, the owners of Streitwise have invested over $5 million of their own funds into the REIT.

A Quick Summary of Our Streitwise Review

Streitwise presents an excellent real estate investment opportunity for those with at least $5,000 to invest for a minimum of one year. Although the company only offers a single REIT at this time, it has proven to provide consistent, substantial returns over the last five years. Using the information in this Streitwise review, you should be able to decide whether investing with Streitwise is the right decision for your current financial situation. If so, sign up for Streitwise today!