Yield Street Freezes All Accounts!

Multi-Family and Apartment Investing
2yFollow

Yield Street Freezes All Accounts!

Andrew HoganPro Member
Rental Property Investor · Indianapolis, IN · Member since 2016 · 560 posts · 463 votes

Just got off with an investor who was about to wire us money from Yieldstreet but his account with them is now frozen until further notice.

Apparently they use a third party to escrow all funds and that company has just filed for bankruptcy.

This is really unfortunate for those investors who are exposed. 

Anybody know more info? Is Yieldstreet similar Crowdstreet, Realcrowd, and Fundrise? I've heard very mixed views so just trying to understand better.

2Reply
67 views

Most Popular Reply

Randy Rodenhouse
Investor · Charleston, SC · Member since 2011 · 606 posts · 413 votes
2y

CrowdStreet, a prominent real estate crowdfunding platform, recently faced significant issues related to its escrow practices, particularly involving investments with Nightingale Properties. Investors discovered that funds from two major Nightingale deals were not placed in escrow accounts but were directly controlled by Nightingale's Elie Schwartz. This lack of oversight allowed Schwartz to misappropriate nearly all the investor money, using it for personal expenses and risky stock trades​

I am not familiar with Yield Street, but many of these platforms are questionable and you need to look into the operator. I have used Equity Multiple and I have not had any issues to date.

4Reply
See this reply in the discussion

5 Replies

Jump to latestLatest
  • Randy Rodenhouse
    Investor · Charleston, SC · Member since 2011 · 606 posts · 413 votes
    2y

    CrowdStreet, a prominent real estate crowdfunding platform, recently faced significant issues related to its escrow practices, particularly involving investments with Nightingale Properties. Investors discovered that funds from two major Nightingale deals were not placed in escrow accounts but were directly controlled by Nightingale's Elie Schwartz. This lack of oversight allowed Schwartz to misappropriate nearly all the investor money, using it for personal expenses and risky stock trades​

    I am not familiar with Yield Street, but many of these platforms are questionable and you need to look into the operator. I have used Equity Multiple and I have not had any issues to date.

    4Reply
  • Andrew HoganPro Member
    OP
    Rental Property Investor · Indianapolis, IN · Member since 2016 · 560 posts · 463 votes
    2y

    @Randy Rodenhouse Right, we seem to be talking about the same escrow issue. Hope there isn't too much exposure but wouldn't surprise me if somebody ends up with a fat fine from the SEC after this.... 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Andrew Hogan:

    @Randy Rodenhouse Right, we seem to be talking about the same escrow issue. Hope there isn't too much exposure but wouldn't surprise me if somebody ends up with a fat fine from the SEC after this.... 


    It will be interesting to see how these crowdfunding platforms make it through a downturn. Many have questionable deals on them that most of the money goes to fees and I wonder if they ever make money. Time will tell..

    7e investments53 Reviews
    WebsiteView Page
    1Reply
  • Andrew HoganPro Member
    OP
    Rental Property Investor · Indianapolis, IN · Member since 2016 · 560 posts · 463 votes
    2y
    Quote from @Chris Seveney:
    Quote from @Andrew Hogan:

    @Randy Rodenhouse Right, we seem to be talking about the same escrow issue. Hope there isn't too much exposure but wouldn't surprise me if somebody ends up with a fat fine from the SEC after this.... 


    It will be interesting to see how these crowdfunding platforms make it through a downturn. Many have questionable deals on them that most of the money goes to fees and I wonder if they ever make money. Time will tell..


     As an investor it seems like an unnecessary layer of the cake when I can go directly to the sponsor. Best to pick a few favorite jockeys vs spreading way too thin without adequate due diligence...

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Randy Rodenhouse:

    CrowdStreet, a prominent real estate crowdfunding platform, recently faced significant issues related to its escrow practices, particularly involving investments with Nightingale Properties. Investors discovered that funds from two major Nightingale deals were not placed in escrow accounts but were directly controlled by Nightingale's Elie Schwartz. This lack of oversight allowed Schwartz to misappropriate nearly all the investor money, using it for personal expenses and risky stock trades​

    I am not familiar with Yield Street, but many of these platforms are questionable and you need to look into the operator. I have used Equity Multiple and I have not had any issues to date.


    WOW that sounds criminal on Ms Elie's account.. I did the very first fund for Realty shares when they were  a start up.  they blew up way to fast then went Kablamo..
    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free