Online investment platform Yieldstreet was the target of an article on CNBC that took umbrage with the platform’s real estate offerings. Yielstreet is a platform that primarily caters to Accredited Investors, providing access to a diverse range of alternative investments, including early-stage firms, real estate, art, and more. The write specifically discussed Yieldstreet’s real estate offerings.
According to the story, of the 30 real estate deals reviewed by CNBC, four resulted in total losses, and 23 are on a “watchlist.”
Yieldstreet reportedly pointed to performance challenges due to market conditions and rising interest rates.
CNBC reports that investors committed $370 million to 30 different real estate deals, with $78 million in defaults, over the past year.
CNBC does add that their review does not include every project, and there were 55 between 2021 and 2024.
The story does share an anecdotal experience of one investor who is chuffed that he apparently invested $400,000 in two real estate deals with little hope of ever getting his money back. This individual is described as financially savvy and a financial services worker.
Yieldstreet, founded in 2015, reports over 500,000 “members” having originated over $6 billion since inception.
More recently, Yeildstreet raised $77 million from venture investors as it aims to expand its services in private markets, including an automated service.
Yieldstreet touts its ability to provide access to private markets, including real estate. Currently, it offers ten different asset classes.
While the real estate offerings cited in the article represent only a fraction of what the platform enables for investors, they do highlight the risks associated with investing in private markets. With the pending change for 401(k) retirement accounts, platforms like Yieldstreet may see greater interest from investors.
