Any one using yieldstreet ?

44 Replies

I can hardly find any good or bad review about yieldstreet. The litigation crowd funding seems new and interesting to me. The lawcash company/website seems doing ok.

I'm about to give it a small shot. It also has real estate crowdfunding project as well.

If anyone has done anything with yieldstreet please share.

Thanks

I have 2 investments with YieldStreet since June.  One is paying as expected.  The other is lagging behind, but that is the nature of event-based payments.

The products they offer now are a little better than what I bought. YS invented the "accelerated" portfolio to take what should be many of the early payouts out of their diversified portfolio so the diversified portfolio runs its principle longer, toward the 3 year term. One of mine has paid out about 10% of its principle within the first few months.

I like the 13%-ish returns or goal.  I don't like the erratic payments and their communications and web site can definitely improve.  Overall, I recommend them based on my 5-month experience.

I've thought about Yieldstreet for buying structured finance securities but until now wasn't aware that they offered real estate. Normally I would not want to buy from an inexperienced website but the deal I saw was originated by a local bridge lender that is keeping a stake in the loan. This is a similar model to what Peerstreet does. The only downside is that the minimum is $15K which is a little too concentrated for my liking.

Originally posted by @James Mc Ree :

I have 2 investments with YieldStreet since June.  One is paying as expected.  The other is lagging behind, but that is the nature of event-based payments.

The products they offer now are a little better than what I bought.  YS invented the "accelerated" portfolio to take what should be many of the early payouts out of their diversified portfolio so the diversified portfolio runs its principle longer, toward the 3 year term.  One of mine has paid out about 10% of its principle within the first few months.

I like the 13%-ish returns or goal.  I don't like the erratic payments and their communications and web site can definitely improve.  Overall, I recommend them based on my 5-month experience.

Thanks James. That's great info for me. My accreditation verification is still pending. Their CPA kept on informing me that I would be good to go soon. I'll see if my status changes tomorrow. The litigation crowdfunding part of the investment kinda makes sense to me and risk seems low. It is however a bit long being 36 months, but I guess if they paid interest on time it is gonna be fine.

James do you mind sharing which project you have been paid on time and which one is lagging behind? And when you said lagging behind, does it mean they are not paying interest at all? Or payment is late every month? I wonder if it is one of the litigation portfolio or the real estate one. 

Thanks for sharing! 

Originally posted by @Jim Groves :

I've thought about Yieldstreet for buying structured finance securities but until now wasn't aware that they offered real estate.  Normally I would not want to buy from an inexperienced website but the deal I saw was originated by a local bridge lender that is keeping a stake in the loan.  This is a similar model to what Peerstreet does.  The only downside is that the minimum is $15K which is a little too concentrated for my liking.

Jim, 

   I'm totally with you. In this type of investment, IMO I would like to diversify as much as possible. I'm more willing to do three 5k investment rather than one 15k investment. 

@Henry Li

The litigation investments on YieldStreet do not pay monthly. They pay as cases settle or awards are paid. That may mean you have a few months of no payments at all which is normal. One of the challenges with YS is they provide no communication about what to expect, so a payment "just shows up" in your bank and you don't know why. They've lagged in updating their web site, so you are happy to get a payment, but don't know how much of it is interest/principal and can't verify that you got the correct amount. They usually update the site within 2-3 days of issuing the payment. I've asked them to reverse that practice: send an email and update the site when they make a payment. We'll see if they change.

I have Diversified Pre-Settlement Portfolio IV, which is what has paid well recently but started slow.  I also have Portfolio V which hasn't paid much yet.

@James Mc Ree

ahhhh, I see. This would be an issue... I kinda like things clear. I was assuming that the principal and interest paid would be shown up on the user portal. I guess this is different from what I thought it would be. I'm very glad that you are sharing all the good/bad. 

Are you overall satisfied with YS so far? I see there are still months before your investments become mature. Their website however claims $0 principal loss. And seeing all those fully funded projects/investment it just seem fine to me. 

Transparency matters a lot in this game.... which it sounded like they are not there yet.   

@Henry Li

YieldStreet does update their portal, but it lags the payment.  It is strange that they do it this way.  My most recent experience was something like a payment received at my bank on a Friday, but nothing about it on their web site until the following Wednesday which is also when I received an email about the payment "I will..." receive (already had it for several days!).

I asked them about this practice.  They said they want to send the payments first and handle any rejects versus invite a lot of "Where is my payment?" contacts.  I told them their future-written email stating "You will soon receive...." should cover them, especially if they added "....within the next 5 days".  I also told them they really need to update their portal as it is uncanny to have a payment in the bank that isn't shown at all on the portal.  Everything on the portal did update when I received their notice of the payment by email.

Overall, I am satisfied so far.  They committed to a 13% return over 3 years.  I am only 5 months into it.  I told them I was disappointed to be getting principle back so early.  They said they created the accellerated portfolios to try to pull the early payouts out of the diversifed portfolios to help with that.

I am on the cusp of another investment.  I am considering a 12% debt-based, highly reliable payment versus another 13% LawCash fund at YieldStreet.  I think I will go with the reliable 12% for the consistency of payments, but only because I think that is "better" versus a dislike of YieldStreet.

@James Mc Ree

Oh, ok. I think I misunderstood what you said then. It sounded like the drawback is that you would receive the payment a few days before the portal got updated. I Assume that the portal is clear about how much the principal return and the interest are. In this case, I guess I'm fine. I would also prefer what you have suggested to them though. 

Cool... Guess I'll give it a shot soon once my status changes. 

BTW what's the 12% debt-based highly reliable investment you mentioned? In the investment world, 12% highly reliable isn't that common. If it is highly reliable, even if it is 8-10% I would still be happy. = )  

PPR offers a fund is a fund of non-performing and re-performing mortgages.  The preferred return is 12% and they haven't missed or been short a monthly payment in over 9 years.  As a preferred return, it isn't guaranteed, but a consistent 9 year return that includes 2008-09 is pretty good.  $10k minimum.

Regarding YieldStreet, you asked about their real estate funds. I am not in them, but would expect they would be more consistent payers than the legal funds if they behave like debt. If they are flips for a 1 year term, you could plan for no payments the first few months, then expect to see them roll in towards the end of the term. 9% Is a little on the low side for real estate funds, especially if you have equity exposure.

@James Mc Ree

Just had a quick look at PPR, seems cool to me if what they said on the website is true. I'll look more into it. Thanks James for sharing! I'm very new to the crowdfunding world but I'm already very excited. I hope everyone does well here. I just love passive income = ) 

I just received distributions on the Diversified Pre-Settlement Portfolio IV & V funds and very happily found the YieldStreet site updated to show the payments and breakout of principle and interest.  Yay, YieldStreet!

Hello,

Henry I was wondering now thta you have a few more months experience how you feel about yield street? I assume from what you have posted about the legal type investments that you receive payments as each case in the investment actually gets paid. Does the web site actually measure the actual apr vs the initial advertised apr? it seems that it would be cumbersome to reinvest your earnings since the min. Investment amounts are relatively high. I had a small investment with Peerstreet which was my first investment of this type and I find that it's taking a long time to get into a new investment there. I think that they have too many clients and not enough offerings.

I invested in the Ridesharing Fleet Expansion in July 2016, and so far it has performed exactly as projected. They made some major (and much-needed) improvements to their reporting recently. They were very responsive to email inquiries, and I've received some nice invitations to meet-ups in NYC (though haven't attended any). I've stayed away from their particular Legal investments, since to date they've mostly been for personal injury plaintiffs, and I prefer to invest in commercial litigation (which I've done through LexShares).

Here's what the YieldStreet performance dashboard looks like:

@Debbie Eles

Hi Debbie, sorry I didn't get notified when you did the post asking me the question, because you didn't "@" me. 

Anyway, for your questions.... YS's litigation fund is a bit hard to measure IMO.. they paid event based and they paid not only interest but principal also. I to be honest have no idea how it actually works. I got paid so far..... $1.93, $14.08, $39.9, 91.62, $12.86, $50.56... some are principal and some are interest. from below, you can see that I have collected $61.75 interest and $149.20 principal returned. Logically, since they keep returning my principal back they will pay less and less interest too. I don't think at the end I'll get the true 13% interest for the $5000 I invested because gradually my principal will be partially returned to me way earlier than when 36 months are matured. 

Hi Henry.  Sorry about the @ your name thing I'm new to this stuff.  Thanks so much for answering.  I had 1 investment with peer street and found that keeping your money invested and working foryou can be a challenge with these sites but they do pay much better interest than most other easy to invest in options.  On YS the min. Investment is larger than Peerstreet so even harder to keep your money working for you.  It actually looks like YS strategy of diversifying the cases and spreading them out over time works pretty well and should grow your confidence.  I might give YS a try if I can find a low buy in shorter term offering to start with.  

@Henry Li   how can any company stay in business paying such small payments and supporting the overhead to do that ???

I understand structured settlements that bizz has been around for ever.

I looked at it years ago pretty heavily.. your totally dependant on the quality of the underwriting of who ever is buying the settlement.. lots and lots of fraud in that business... one must be very careful

@Jay Hinrichs

I think part of their low cost approach is their partner, LawCash, does all of the hands-on work of obtaining the cases and working the originations and payouts.  YieldStreet (YS) approves the underwriting and provides a funding stream.

YS has a staff of only 20 or so.  They likely get a % of every dollar loaned out and skim another % on the payout to investors.  (I don't know their finances - just guessing here).

Their fund 14 sold out in about 2 weeks for a $2M raise.  The key is volume and automation to scale.  They were lagging substantially on automation, but are getting better.

@James Mc Ree   it is an industry.. and if your aligned with the best of the best   that is good. 

I don't think its appropriate for mom and pop to try on their own

I recently invested in Diversified Pre-Settlement Portfolio XIV. So far I am getting the returns expected (13%). First time for me to do litigation based lending (and event based). But I really like YS' different offerings to balance out a portfolio. I also have had a couple of good conversations with some of the staff there to understand the business better.

I do wish they would communicate more outside of the dashboard (which is actually well done). I didn't hear anything during the process of getting my first amount returned.

YS normally sends an email that shows the amount of principle and interest you received in the payment.  Unfortunately, that email sometimes lagged the actual payment by a day or two.  They have gotten much better recently.  I think I receive the email the day the payment arrives at my bank.