Real estate investment is one of the most common methods for investors to begin making a lot of money. Before, this meant going out and buying a rental property. The proceeds from one property would be transferred to the next, and so on.
The biggest disadvantage is that many real estate ventures need huge upfront cash. Rental property often requires a 20% down payment, likely in the tens of thousands of dollars.
Crowdfunded real estate systems available today make the process easy sailing and less costly!
In this piece, we’ll look into Streitwise, a real estate investment platform that enables investors to get their hands on private real estate transactions.
This Review will look into Streitwise to determine whether it is the greatest real estate investment platform.
Ahead, you will discover answers to some of the most commonly asked questions about Streitwise and real estate.
Streitwise is a real estate investing program. Like most real estate investing training courses, you’ll likely be exposed to the “Big 3” investing types:
- Long-term buy-and-hold
Regardless of which path you go down, there is a lot of potential with real estate investing.
After all, it’s the world’s oldest wealth-builder.
However, before you leave this Streitwise review and go sign up, you might want to ask yourself:
“Is now the right time for me to get into real estate investing?”
Because, no matter which way you slice it, real estate investing is extremely capital intensive, labor intensive, or both.
So if you’ve only got an hour or two a day, or your savings account is a few zeroes lighter than you’re comfortable with, this might not be the best time for you to jump into real estate investing.
But that doesn’t mean you’re out of luck. It just means you need a system to free up more time and give yourself a stronger financial cushion.
A good way to get yourself there is with Digital Real Estate.
Digital Real Estate takes all the best parts of real estate investing, while eliminating most of the headaches:
- Low cashflow
- Interest payments
- High overhead
- Expensive repairs and maintenance
- Problematic tenants
And the best part?
Digital Real Estate allows you to build a passive income stream that’s actually passive!
An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000).
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day analyzing deals, cold-calling homeowners, or dealing with contractors.
If that sounds like something you’d be interested in, check out Digital Real Estate.
This is the perfect first step to build recurring income that you can then use to start investing in real estate down the line.
However, if you’d still like to know more about Streitwise, keep reading.
What Is Streitwise?
You may use Streitwise to diversify your portfolio with income-generating real estate assets.
Since 2017, the company has worked on the premise that everyone, rather not only high-net-worth people, should have access to real estate assets.
While no exact data are provided, their 2021 prognosis says that they maintained their course throughout the pandemic and fulfilled 100 percent of redemption requests from investors who wanted to sell out before 2020.
Streitwise is now a modest company, but they have made substantial technological improvements to enhance the user experience. Giving professional financial advice and independent financial advice to their REIT holders.
The Streitwise website also showed that their thesis remains the same: they believe investing in quality, stable office buildings in attractive suburban-urban areas at high cap rates would result in outsized risk-adjusted returns over time.
Based on their investing philosophy, they presently own a portfolio of buildings around the United States. To continue to create profits for their investors, they want to expand into many more similar properties around the nation in the future.
Product Features Of Streitwise
The minimum initial investment is $5,000.
Accredited investor status is not necessary until your investment in the REIT equals 10% of your net worth or yearly income over the preceding two years.
Individuals, businesses, limited liability companies, trusts, and self-directed IRAs or 401(k) plans may invest in 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 percent.
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: 95.0% of the NAV
Between four and five years: 97.5% of the NAV
Five years or more: hundred percent of NAV
A complete redemption is also attainable in the case of the stockholder’s death or total incapacity. However, since it is a non-publicly listed REIT, you should be aware that your investment cannot be sold on major markets.
Streitwise Dividend Re-Investment Plan (DRIP): With Streitwise, you may have your dividends utilized to acquire additional REIT shares, increasing the value of your investment. This is completely optional.
Are REIT (Real Estate Investment Trust) Dividends Taxable?
In case you missed it, legislation was enacted in 2018 that changed some of the tax breaks for corporate revenue, earned fixed income investments for individuals, and REIT investors (in addition to other changes).
The new rule allows REIT investors to deduct up to 20% of their dividends from their taxable income. That’s a lot of cash.
And, like everything else, there are limitations, requirements, and exceptions, so read the fine print. However, a REIT’s taxable income may be reduced by depreciation expenditure.
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 stock transfer agent services or other investments.
Dividends from capital gains (when an investment is sold for a higher price than it was purchased for) 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 a dividend from shareholders’ equity REIT or paid-in capital rather than from the company’s earnings.
This is a fantastic benefit since it reduces your tax bill, enabling you to maximize future capital gains.
While superb tax software like TurboTax can usually manage these complexities for you, knowing what you’re in for regarding taxes and REITs is always a good idea.
You may avoid this by creating a tax-exempt account with Streitwise (such as an IRA) and enabling your profits to grow tax-free.
How Does Streitwise Work?
With a $5,000 minimum investment, you may begin using Streitwise. You will get 500 shares for an investment of roughly $10 per share.
Unlike many other real estate real estate crowdfunding platforms, you do not need to be an accredited investor to participate. Consequently, the platform is now accessible to investors of all net worth and degrees of competence.
The corporation, however, mandates that your investment in the REIT not exceed 10% of your net worth or revenue during the past two years. (Net worth or earnings might be solo or joint.)
You may invest more than 10% of your income or net worth, but only if you are an approved 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 skin in the game of 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 real estate investments or 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 1st streit office inc Panera Bread Headquarters is 290,000 square feet spread across three buildings in St. Louis, Missouri. 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 where no gateway is used. This is accomplished by avoiding high-cost coastal locales in favor of lower-cost markets with higher dividend yields.
Leverage is restricted. To avoid the risk of real estate leverage, the company intends to maintain debt levels at no more than 60% of the value of any property owned.
These four investing strategies reduce risk while increasing dividend income and long-term capital appreciation.
Pricing And Fees At Streitwise
Streitwise levies two fees. When you make your first deposit, you will be charged a 3 percent fee. Following that, you will be required to pay a 2% annual management charge, which will be taken 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
You must have a bank account in the United States or be able to execute a wire transfer to create an account with Streitwise. The site is accessible to both US residents and international nationals. Anyone living outside of the United States and accessing a wire transfer may invest.
To establish an account, you must provide the following information:
- Contact information
- Social Security Number
- 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
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 get started, fill out an ACH authorization form, which links your bank account to the Streitwise investment platform. This will entail supplying the name, type, routing, and personal account numbers linked with your account.
Streitwise, shares will be purchased via the Computershare Investor Center. You may also log in and monitor your portfolio and read account statements. You may also enroll in the Streitwise DRIP program from there if you choose.
Is Streitwise A Scam?
So, is Streitwise a scam? Not technically. You can make money with this program, but it’s definitely not as easy as Streitwise makes it sound.
There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – the actual profit margins on real estate investments are pretty small.
Now, there’s nothing wrong with front-loading the work and making the money later.
But if you’re grinding it out for 3 months – looking at deals, sending out offers, negotiating with the seller and lender to buy a rental property – and then your reward is like $100 a month in profits, it’s not really worth it.
What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month (with a 90-95% profit margin)?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Real Estate.
And, unlike traditional real estate, you can legitimately do this from anywhere. It’s a true lifestyle business.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.
Are There Alternatives To Streitwise?
Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:
What Is My Top Recommendation In Making Money Online In 2022?
Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
Digital Real Estate is the #1 online business model for those just starting out.
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.
1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
Flipping and wholesaling are full-time jobs (and more), no matter what any real estate guru tells you. You always have to be searching for deals, because if you stop, so does the money.
2) You Own & Control EVERYTHING: Yes, in traditional real estate you kind of “own” the properties. But there’s also a ton of debt tied to most real estate investments, which means the property isn’t truly yours.
A lender can take it away if you miss a payment. Not to mention, loan payments really impact your profit margins.
With Digital Real Estate, you own the assets outright (with a 90-95% profit margin), which means you have all the power and all the control.
3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
4) Minimal Ongoing Expenses: With traditional real estate, monthly expenses are HIGH. Between loan payments, ongoing maintenance, and repairs (not to mention the possibility of having to go through the eviction process), profit margins are slim.
Plus, whenever you have a vacancy, factor in the costs to turn over a unit (plus the fact there’s no money coming in until the next tenant moves in).
With Digital Real Estate, a 100% online business with minimal maintenance and ongoing costs, you never even have to think about that risk.
5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with traditional real estate investing, you’d have to double your monthly rent, double your deals/number of units OR double your profit margins. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.
6) Make Money Helping Real People: This part is what makes it all worth it. With Digital Real Estate, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face
Now, the choice is yours. You could continue browsing, looking at opportunities like Streitwise which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.