Any one using yieldstreet ?

44 Replies

How is this even a thing?  If a millionaire could buy into one of these - such as the YS Presettlement Portfolio targeting a 12% return, why wouldn't they just buy out the whole thing?  YS could sell it to them, not pay anything in advertising in order to get my money and save a lot of paperwork in sending me all of the checks and tax information as well... or the millionaire investor could just buy the whole Presettlement deal without YS...  This just doesn't make much sense.

I believe the company offers private deals not on the web site for larger investors.  Scroll down to the bottom of their home page and you can see how they bucket investors by size up to institutional size investors.  They don't say what benefits larger investors get on the page, but presumably it is lower fees and customizable investments.

These portfolios usually sell out in minutes (literally!).  High net worth investors might not want to park $1M or such large amounts in these investments because they want more diversification.  $100K Certainly happens though.

If I could get a "guaranteed" 10+% I'd sell my stuff and buy $mm worth and really be done.

So to answer your question, people don't park millions in as there is risk. There is a reason people still buy US bonds paying 1%

I have 10 investments with them.  Both litigation finance and real estate.  I am happy to date with all investments making a bit over 12% to date.  I recommend them. You will receive a K1 for each investment during tax time. 

I was supposed to be receiving 15% on each of two different investments but only received 10% return this year. Also, they appear to be prepaying on the interest so I assume my return will be even less next year.  Their accounting is so convoluted.

I also have an investment with PPR and have been very happy with them, I would recommend that investment over anything with yieldstreet

Originally posted by @Michael Gammon :

Has anyone received a significantly lower yield than what was originally advertised by YieldStreet?

Using XIRR to track cash flows, I am getting 50 basis points higher than advertised for DiverPSP (13.42% vs 13% advertised) and LawFF (13.26% vs 12.75% advertised) investments. STSBF is slightly under-performing (12.93% vs 13% advertised) due to fund expenses charged in the first month.

I am new to this platform. My portfolio is still very young. 

I have not been happy with YieldStreet at all. This past year, I invested in a real estate offering with a $120k minimum. This was only my second investment with YieldStreet. The initial term was for 12 months with the option for a 6 month extension and it was supposed to pay out monthly. 60 days after my investment became active I hadn't received any money or communication from Yield Street. I emailed them asking for an update. They didn't provide any real information just told me that I would be paid mid-month. Another 30 days passed and still no money, bringing it to 90 days since my investment became active. I emailed them and again, they provided no information other than to say I should be getting paid soon. I did eventually get paid later that month. The next month, no money, no communication. On the 18th of the next month I received an email indicating that the loan had been paid off early. My principal was returned and I received my last interest payment. My problem with that? My investment stopped accruing interest 25 days prior. They took 25 days to process and return my $120k, which didn't earn any interest during that period. I guess the $150 they charge for fund expenses doesn't go toward paying someone to make sure that monthly payments are distributed and principal payments get returned in a timely fashion. Overall I feel as though they lack transparency, have poor communication and shady business practices. I definitely will not invest with them again.

I've noticed some of their real estate deals are not selling like hotcakes anymore. Wonder if folks are getting wise to our being closer to the end of the cycle than at the beginning, and that the pricing, i.e. yield paid, is not high enough for bearing the risk.

Agree with other posters that communications could be improved.

I had been watching YieldStreet for a while and recently joined their platform. I really like their Wallet. I earn 2% annually on idle cash deposited with them. The money is FDIC insured and although held at a third party bank it is integrated within their platform. Very easy to use. I also have already invested in a couple of deals through them. I like how the site pays interest daily on idle cash and accrues interest earned on each investment.

Yes, their investments are solid for passive income for 6 months to 2 years. The problem is they have gotten so big their investments fill up in seconds and sometimes you cant even click the button to get an offering , Meaning they are allowing some special investors to go in early before the official offering time. It has become a very big problem. 

I have had 6 investments with them.  Two paid back early or on time. One is still holding. Three are in default.  The payout date for the defaults was March 2020.  Two defaults are a result of fraudulent activity by the borrowers. One default was based on poor business planning on behalf of the borrowers.  With my experienced risk of 50% default, although I did accept the risk when starting, I have chosen not to renew my account with them.

Yield street uses DECEPTIVE PRACTICES in the recruitment of potential investors. They do not disclose active defaults or foreclosures unless you are actively invested in the project. For instance, Vessel Deconstruction VI has been in default for several months, the originators of the loan have acted fraudulently and fled jurisdiction with the collateralize vessel, scrapping them illegally to the loss of all investors. If you are actively involved in an investment, this will show in your portfolio. If you are a prospective investor, and you look at the "past offerings" you will see a what appears to be a successful load with active interest payments. This is not so. See the photo attached, it demonstrates the two ways to view the loan details, taking simultaneously.

They also double dip on many of their investments. They essentially take a senior position on a loan, then re-sell the loan to you at a junior position. They make their return, then take a substantial part of your return in management fees. I payed 2 "Yearly management fees" on a 6 month loan, because it had 3 months in 1 year, and 3 months in another. Now they are venturing off into becoming their own orriginator, trying to get you to loan them money, so they can further their predatory practice of securing the senior position, then offering you a junior position.

I will update my review as further details of Vessel Deconstruction VI become available - but I am not holding my breath .