Are you looking to invest in real estate but don’t want to go through the hassle of buying and managing property yourself? If so, a private real estate investment trust (REIT) like Streitwise may be worth considering. In this blog, we’ll provide a Streitwise review and discuss why it’s a great investment opportunity for both accredited and non-accredited investors.
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What Is Streitwise?
Streitwise is a private REIT that was founded in 2013. The company’s mission is to provide individual investors with an easy and cost-effective way to invest in commercial real estate. Streitwise is focused on acquiring and managing income-producing properties, including office buildings, industrial properties, and retail centers.
What Is a REIT?
Streitwise is a private real estate investment trust (REIT) that focuses on a specific geographic area. A REIT is a type of investment vehicle that allows investors to invest in a portfolio of real estate properties and earn income from those properties. REITs are typically considered to be a good investment for those looking for steady income and the potential for long-term growth.
Because Streitwise focus its efforts specifically to St. Louis and Indianapolis, investors can expect the Streitwise management team to be the subject matter experts in the region. If you’re wondering about the potential lack of diversification that is inherent in limiting the geographical range of your real estate, be assured that Streitwise spreads their investments across multiple industries to avoid idiosyncratic risk from any single property.
Why Invest in Streitwise?
There are several reasons why Streitwise is a great investment opportunity:
- Niche expertise: Unlike other hands off real estate investment options like RealtyMogul, First Nation Realty Partners, Arrived Homes, or Fundrise, Streitwise does not focus on providing a mix bag of varying investment options. They believe in putting all of their energy, effort, and expertise into one REIT. Narrowing their focus to a limited regional area, and giving them the expert inside edge which is crucial to acquiring the best deals.
- Diversification: By investing in Streitwise, you can diversify your investment portfolio and reduce your exposure to risk. Real estate is a tangible asset that is not directly tied to the stock market, so it can provide a level of stability to your overall investment strategy.
- Income potential: One of the biggest advantages of investing in Streitwise is the potential for steady income. The company’s properties generate rental income, which is distributed to shareholders in the form of dividends. Streitwise has a strong track record of increasing its dividend payouts over time, so you can potentially enjoy a growing stream of income from your investment.
- Professional management: Another benefit of investing in Streitwise is the professional management of the company’s properties. Streitwise has a team of experienced real estate professionals who are responsible for acquiring and managing the company’s properties. This means you can invest in commercial real estate without having to worry about the day-to-day management of the properties yourself.
- Cost-effective: Investing in commercial real estate can be expensive, but Streitwise offers a cost-effective way to gain exposure to this asset class. The company’s shares are not traded on the stock market, so they are only available to accredited investors. However, Streitwise also offers non-accredited investors the option to invest through a Regulation A offering. This means that non-accredited investors can also access the investment opportunity, although the cost may be higher than for accredited investors.
- Strong track record: Finally, Streitwise has a strong track record of performance. The company’s properties have generated steady income and the company’s dividend payouts have consistently increased over time. This track record provides some assurance that your investment in Streitwise will be a sound one.
Is Streitwise Safe?
As with any investment, it’s important to carefully consider the risks and potential drawbacks of investing in Streitwise. Here are a few things to keep in mind:
- Illiquidity: As mentioned earlier, Streitwise’s shares are not traded on the stock market, which means they are not as liquid as publicly-traded REITs. This means that it may be difficult or impossible to quickly sell your shares if you need to access your investment.
- Potential for loss of principal: Investing in Streitwise, like any investment, carries the potential for loss of principal. The value of the company’s properties and the value of its shares may fluctuate over time, and there is no guarantee that you will be able to sell your shares at a profit.
- Dependence on rental income: Streitwise’s properties generate rental income, which is the main source of the company’s revenue. If the rental market were to suffer a downturn, it could negatively impact the company’s financial performance and potentially reduce the dividends paid to shareholders.
- Management fees: Streitwise charges its shareholders management fees to cover the cost of managing the company’s properties. These fees may reduce the returns you earn on your investment.
- Potential tax consequences: As mentioned earlier, investing in Streitwise may have tax implications, depending on your individual situation. It’s always a good idea to consult with a tax professional to understand the potential tax consequences of any investment.
Is Streitwise Worth It?
Overall, Streitwise is a well-established company with a strong track record of performance. However, like any investment, there are potential risks and drawbacks to consider. It’s important to carefully evaluate your own financial situation and investment goals before deciding whether to invest in Streitwise.
Streitwise is a great investment opportunity for both accredited and non-accredited investors who want to diversify their portfolio and potentially earn steady income from commercial real estate. The company offers a cost-effective way to invest in this asset class and has a strong track record of performance. If you’re interested in learning more, visit the Streitwise website and consider adding this company to your investment portfolio.
