If your goal is building long-term wealth, real estate investments should be part of your asset allocation strategy. Real estate investing can provide a solid passive income stream with numerous monetary benefits. However, without tens of thousands of dollars available, you might feel priced out of these assets.
Private REITs offer an alternative for individual investors seeking real estate exposure—and Streitwise, a real estate crowdfunding platform, specializes in precisely this solution.
Streitwise provides access to real estate investment trusts (REITs) with a minimum investment of just $5,000. The platform primarily focuses on cash-flow real estate investments, commonly known as rental properties.
If you want to avoid the hassles of direct property rental or lack the capital for individual real estate projects, Streitwise claims to offer a viable solution. However, before diving into Streitwise investments, let’s examine this real estate crowdfunding platform thoroughly. This comprehensive Streitwise review covers everything you need to know for an informed decision.
Let’s get started!
What is Streitwise?
Streitwise launched in 2016 with sponsorship from Tryperion Partners. The Los Angeles, California-based company operates as more than just a crowdfunding platform.
While commonly viewed as a real estate crowdfunding platform, Streitwise actually operates as a non-traded REIT. REITs are companies that own and manage income-producing real estate. Shareholders receive dividends representing their portion of the company’s profits. As an equity REIT, you benefit from both capital appreciation and dividends generated by the properties’ cash flow.
The REIT currently manages over $76 million in assets under management. Tryperion Partners brings substantial experience with more than $5.4 billion in completed transactions.
How does a Private Real Estate Investment Trust work?
Unlike publicly traded REITs available through brokerage accounts or 401(k) plans, private REITs don’t trade on exchanges. This reduced liquidity introduces additional investment risks.
Every investment carries inherent risks. Private REITs like Streitwise offer several compelling benefits, including:
- Generating passive income
- Enhanced and more diversified returns
- Potential hedge against inflation
- Tax advantages
What does Streitwise Offer?
Investing in Streitwise’s REIT requires a minimum initial investment of $5,000. Accredited investor status isn’t required unless your investment exceeds 10% of your net worth or income from the past two years.
Various entities can hold these investments, including individuals, corporations, limited liability companies, trusts, and self-directed IRAs or 401(k) plans.
REIT shares cannot be redeemed during your first full year of ownership. After the first year, 90% becomes redeemable, with redemption percentages gradually increasing to 100% over five years.
The redemption schedule breaks down as follows:
- Less than one year – No redemption allowed
- 1 to 2 years – 90% of the Net Asset Value (NAV)
- 2 to 3 years – 92.5% of NAV
- 3 to 4 years – 95% of NAV
- 4 to 5 years – 97.5% of NAV
- 5 or more years – 100% of NAV
Shareholders who pass away or become completely disabled qualify for 100% redemption. Since Streitwise operates as a non-publicly traded REIT, you cannot sell your investment on traditional exchanges.
Streitwise offers an optional Dividend Re-Investment Plan (DRIP), allowing you to automatically reinvest dividends toward purchasing additional REIT shares.
How Does Streitwise Work?
Streitwise’s real estate crowdfunding platform welcomes non-accredited investors—a significant departure from most other platforms that restrict access to accredited investors only.
This accessibility opens investment opportunities to anyone, regardless of net worth or annual income. The company maintains one key requirement: your REIT investments cannot exceed 10% of either your net worth or annual income from the past two years (calculated individually or jointly).
From 2017 to 2019, Streitwise delivered dividend payments averaging 10% annually. These quarterly dividend distributions are calculated net of investment fees.
A unique advantage of Streitwise lies in its founders’ personal investment—the three managing founders have invested over $5 million of their own money into the trust. This personal stake ensures they have genuine interest in successful fund management.
Streitwise primarily invests in commercial properties, typically holding these assets for 10 years or until property values reach optimal selling levels.
When properties sell, proceeds are distributed among investors or reinvested in new properties.
Currently, 1st Streit Office Inc. owns two commercial properties: the 290,000 square foot Panera Bread headquarters in Saint Louis, Missouri, and the 142,000 square foot Allied Solutions Building—a mixed-use property in Carmel, Indiana.
1st Streit Office actively seeks additional properties. According to their website, “We do intend on acquiring, over time, a diversified portfolio of quality office properties.”
Streitwise employs four key investment strategies when evaluating potential commercial investments:
- Creditworthy tenants – Targeting established commercial tenants
- Non-gateway markets – Focusing on moderately priced markets outside expensive coastal areas to potentially generate higher dividends
- Value-oriented investments – Evaluating strategic locations based on established employment, sustainable occupancy, nearby amenities, and quality construction
- Modest leverage – Limiting debt levels to maximum 60% of held property values
These strategies aim to minimize risk while maximizing long-term capital appreciation and dividend income.
Minimum Investment
Substantial savings aren’t required to purchase Streitwise REITs. The minimum investment stands at $5,000. With shares priced around $10 each, your $5,000 investment secures approximately 500 shares.
What does Streitwise Cost?
Streitwise maintains competitive fees compared to other investment platforms, utilizing a straightforward two-fee structure:
- 3% upfront fee – Applied to your initial investment
- 2% asset management fees – Annual fee deducted from dividend income
For example, a 13% annual dividend yields an 11% net return after the annual management fee. No hidden fees exist.
Who should use Streitwise?
Streitwise accommodates both accredited and non-accredited investors—a distinguishing feature since most private REITs exclude non-accredited investors.
Accredited investors can invest unlimited amounts in any available investments. Qualification requires individual income of at least $200,000 or joint filing income of $300,000.
Alternative qualification requires net worth of at least $1 million, excluding your primary residence.
Non-accredited investors face specific limitations. Investment amounts cannot exceed the greater of either:
- 10% (or less) of total annual income
- 10% (or less) of total net worth excluding primary residence
For example, with $100,000 annual income and $50,000 net worth, your maximum investment would be $10,000—10% of your higher annual income figure.
How to Sign Up with Streitwise
Opening a Streitwise account requires either a U.S.-based bank account or wire payment capability. Both U.S. citizens and foreign nationals are eligible.
Required registration information includes:
- Full name
- Email address
- Investor status
- Individual or joint investment preference
- Desired investment amount
- Physical address
- Telephone number
- Social Security number
- Date of birth
International residents must complete wire payments for investments. An ACH authorization form connects your bank account with Streitwise’s platform.
Computershare Investor Center serves as your portal for purchasing Streitwise shares, tracking portfolios, and viewing account statements. DRIP program enrollment is also available here.
Streitwise Pros and Cons
Pro: Low investment minimum
Commercial office property investing begins with just $5,000—enough to secure approximately 500 shares.
Pro: Open to non accredited investors
Accredited investor status isn’t required for platform access—unusual for these investment types.
Pro: Earn both capital appreciation and annual dividends
Investors receive quarterly dividends plus profits when properties are sold.
Pro: Above-average Dividend history
The Streitwise REIT outperforms most fixed-income investments (such as Certificates of Deposit) and many stocks.
Pro: Can Redeem after One Year
Share redemption begins after your first ownership year—another differentiating factor from other platforms.
Pro: Tax Benefits
Streitwise real estate investing minimizes your tax liability.
Depreciation reduces taxable income as a paper expense. The 20% pass-through reduction benefits your dividend income.
Capital appreciation receives favorable long-term capital gains tax treatment.
Pro: 401(k) and IRA options
Investments can be held within self-directed IRA or self-directed 401(k) accounts.
Pro: Deposit Dividends in your bank account or Reinvest it
Commercial real estate dividends can transfer directly to your bank account for immediate access, or utilize Streitwise’s dividend reinvestment program to grow your investments.
Pro: Founders are deeply vested into the company’s success
All three managing founders have invested significant personal stakes in the company, utilizing deep property research strategies to increase investment success probability.
Pro: Can Invest using Cryptocurrencies
If you own crypto and seek less volatile investments like commercial real estate, Streitwise may suit your needs. Bitcoin or Ethereum can fund your investments.
This allows transitioning to less risky asset types without depleting checking or savings accounts.
Con: Can’t Sell your Investments on Popular Exchanges
As a private REIT, Streitwise shares cannot be sold on exchanges like publicly-traded REITs, reducing investment liquidity.
Con: Must Open a Special Account
Commercial property investments require special self-directed accounts established specifically for these real estate deals—different from regular self-directed retirement accounts allowing broader investment management.
Con: REIT only holds 2 properties
Streitwise owns just two properties, limiting portfolio diversification.
Con: Full liquidity takes 5 Years
While 90% liquidity begins after your first year, achieving 100% liquidity requires a full 5-year commitment.
Con: Focused on Commercial Real Estate
While real estate investing offers many benefits, economic conditions can increase commercial real estate risks. The COVID-19 pandemic exemplifies this—remote work acceleration has significantly impacted commercial real estate demand.
FAQ: Streitwise Review
Is Streitwise a good deal?
Streitwise eliminates disposition fees and other hidden costs. You’ll pay a 3% upfront fee when beginning commercial real estate investments.
After that, annual management fees of 2% are deducted from your dividends.
Does Streitwise offer solid customer service?
Streitwise’s website features a comprehensive FAQ page addressing common questions about getting started, dividend frequency, and more.
Live chat support is available from 9 am to 5 pm, Pacific Standard Time, for questions not covered in the FAQ section.
Current investors can email equity@streitwise.com, while prospective investors use invest@streitwise.com.
Their website also offers convenient call scheduling with representatives, eliminating hold time frustrations. Contact them directly at 310-907-5525.
How is the diversification and risk management on Streitwise?
Unlike traditional investments such as mutual funds, Streitwise cannot diversify its portfolio extensively—it holds only two commercial properties.
Long-term growth potential may be constrained without additional property acquisitions.
Is Streitwise easy to use?
Opening a Streitwise account is straightforward. Simply click “Start Investing” on their homepage to begin. You’ll provide basic investment and personal information.
A brief questionnaire determines your accredited investor status.
Account funding takes considerable time. Funds typically remain in escrow for 10 days before clearing for share issuance, with the entire process potentially taking four weeks.
The Streitwise mobile app for iOS devices (iPhone and iPad) allows investment tracking on the go. Unfortunately, no Android version is currently available.
Bottom line: Streitwise
Streitwise’s REIT provides dual compensation through dividends and capital appreciation, enabling regular passive income generation from your investments.
However, if you’re unwilling to commit funds for a year or longer, Streitwise may not suit your needs. You must also accept the risks associated with a REIT holding just two properties in its portfolio.
Those seeking commercial real estate exposure—particularly non-accredited investors—should consider Streitwise. These investments require real estate market knowledge and comfort with extended fund commitment periods.
