Assess their risks, liquidity, investments, returns, timeframes and other terms
Invest in single-family homes
Invest in private market alternatives
The minimum investment on Doorvest is a 25% down payment on a home, averaging $56,250 based on the average home price of $225,000.
Investing with Doorvest involves risks such as market volatility, economic changes, and property-specific issues. While the platform aims to manage these effectively, outcomes can be uncertain, and investors should carefully consider their risk tolerance and conduct due diligence before investing.
Yieldstreet investments, focused on high-yield, specialty lending, carry inherent risks higher than traditional investments, primarily due to the potential for borrower default.
Doorvest allows investors to sell their homes back to the platform, requiring them to connect with a client partner for more information on the process.
Yieldstreet's investments are generally less liquid, meaning they cannot be quickly sold for cash. These private market alternatives often require longer holding periods.
Doorvest reports an average annual investment return of 18%, accounting for rental income, property appreciation, and mortgage leveraging.
The expected net annualized return (IRR) for investors on Yieldstreet is 9.6%.
Doorvest focuses on long-term investments in single-family rentals, generally suggesting a commitment of several years to decades, based on real estate appreciation and rental income.
Yieldstreet's investments span time horizons from as brief as 6 months to as long as 5 years.
To invest with Doorvest, you need to be in the U.S. or able to sign documents at a U.S. Embassy.
Yieldstreet is open to U.S. persons with a valid TIN, U.S. bank account, and U.S. mailing address. Non-accredited investors can access the Alternative Income Fund, while single asset investments require accredited investor status verification.
Real estate assets on Doorvest can experience volatility due to economic shifts, interest rate changes, and local market trends, potentially affecting investment values and posing risks for short-term investors.
Assets on Yieldstreet, being alternative investments, often show different volatility compared to traditional markets, potentially offering less correlation with broad market swings.
Doorvest complies with the Texas Real Estate Commission (TREC) consumer protection notice, indicating adherence to state-level real estate transaction standards. It does not provide details on broader financial regulations or audits, focusing more on real estate industry compliance than securities regulation.
Yieldstreet is regulated and undergoes regular audits for compliance. Its partnership with Synapse Brokerage LLC, an SEC-registered broker-dealer and FINRA and SIPC member, ensures adherence to strict financial regulations.
Doorvest protects rental investments with homeowner's insurance, covering physical structure damage and potentially extending to personal belongings and medical expenses. This coverage is a mortgage lender requirement, safeguarding against various damages, though investors should be aware of any coverage limitations.
Funds in the Yieldstreet Wallet are insured up to $250,000 by the FDIC, with deposits between $250,001 and $1 million spread across multiple FDIC-insured banks for extended coverage.
Doorvest offers rental income as returns to investors, bolstered by a Rent Guarantee that includes vacancy and non-payment protection for the first three months, with an option to extend up to 12 months. Additionally, a Renovation Guarantee covers repair costs for the first year of ownership.
Yieldstreet offers varied dividend or interest payment structures: fixed income investments provide monthly payments at a target yield, diversified portfolios offer quarterly target yields, and art investments yield returns upon sale, all subject to specific terms and potential annualized net returns.
To get their money back, Doorvest investors need to sell their property, with the timeline depending on market conditions and the sale process. The process is initiated through Doorvest, and funds are received after the property is sold and the transaction is completed.
Investors on Yieldstreet receive distributions directly into their Yieldstreet Wallet and can withdraw these funds to their bank account as desired.
Doorvest employs a fee model, deriving revenue from a portion of the monthly rental income and margins on home sales, always at fair market value.
Yieldstreet's fees include a range from 0% to 2.5% annual management fees, structured notes incur a 1.25% annual management fee plus a $150 annual fund expense, the Yieldstreet Alternative Income Fund charges a 1.0% annual management fee and up to a 0.5% annual administrative expense.
Doorvest facilitates tax compliance by providing investors with all necessary documentation for tax filing, related to real estate investment income and expenses.
Yieldstreet issues either a K-1 or 1099 form for tax purposes, based on the legal structure of the investment, with details provided on the offering page and in downloadable documents when new offerings are launched.