Alternative Investments: Yieldstreet, etc.

[Kyle 207]

Anyone had success with Yieldstreet or similar alternative investment platforms? I had used Lending Club and RealtyShares before they shutdown. I got an add from Mint about Yieldstreet and was curious if anyone uses it or a similar platform.

[luke duke 6413]

Anyone had success with Yieldstreet or similar alternative investment platforms? I had used Lending Club and RealtyShares before they shutdown. I got an ad from Mint about Yieldstreet and was curious if anyone uses it or a similar platform.

Online ads are definitely my source for investment opportunities.

[troph 24830]

Yeah that’s kinda a hard and fast rule for me.  If you’re accredited and want alt investments get into the start up, private company, and/or real estate deal flow community around you and watch for a year. Find people you like, with a solid track record and start playing in deals in small increments ($25-50k is usually the minimums; some are $100k but they won’t mind if you pool with others to meet that minimum).  You’d have to have a really good picker or commit to 10+ deals to make the risk work.  If you found someone who was leading a deal in the low to mid six figures that you liked you could lean on their expertise.   I would otherwise invest in alt investment ETFs if private investments isn’t your thing.  But I would stay away from insta ads.  All of this should be done at 20% or less of your net worth IMO.  

Edited April 8, 2021 by troph

[Nice Guy Eddie 13515]

I don't know if I would invest with them, but I wouldn't necessarily disqualify a business because they advertise online. Go where your customers are, and if you think your audience is spending time on instagram or they use Mint to track their personal finance, why not use them for advertisements. Like anything, use your own due diligence to understand what you're getting into, and who are the principals in that firm.

 

[Dahobbs 17624]

4 hours ago, troph said:

Yeah that’s kinda a hard and fast rule for me.  If you’re accredited and want alt investments get into the start up, private company, and/or real estate deal flow community around you and watch for a year. Find people you like, with a solid track record and start playing in deals in small increments ($25-50k is usually the minimums; some are $100k but they won’t mind if you pool with others to meet that minimum).  You’d have to have a really good picker or commit to 10+ deals to make the risk work.  If you found someone who was leading a deal in the low to mid six figures that you liked you could lean on their expertise.   I would otherwise invest in alt investment ETFs if private investments isn’t your thing.  But I would stay away from insta ads.  All of this should be done at 20% or less of your net worth IMO.  

I agree with this. 

3 hours ago, Nice Guy Eddie said:

I don't know if I would invest with them, but I wouldn't necessarily disqualify a business because they advertise online. Go where your customers are, and if you think your audience is spending time on instagram or they use Mint to track their personal finance, why not use them for advertisements. Like anything, use your own due diligence to understand what you're getting into, and who are the principals in that firm.

 

I also agree with this, particularly as this is just a platform and not really the funds themselves advertising. But, in general I find that a lot of people get suckered into investments they have no business being part of. They either don't meet the standards for an accredited investor at all, but someone played fast and loose with what assets to include, or they just barely meet that standard. 

[Reagan1k 3024]

My concern with all of these lending consortiums catering to underserved business is that there is a reason these borrowers are underserved.

They'd be the 1st to crater during a downturn in the economy and principal would appear to be at risk.  If I'm taking a risk on principal at that level, I want returns far greater than these promoted as higher yielding fixed income.  Just my hunch hearing and seeing the adds.  To me, this reeks of junk bond risk without junk bond returns.