Invest in fractionalized multimillion-dollar paintings
Invest in equity REIT
Investments
$15,000
The minimum investment required is $15,000, which can be used to buy one or more assets.
Investments
$3,515
The minimum investment amount for Streitwise is $3,515, which is based on a Net Asset Value (NAV) of $7.03 per share.
Moderate Risk
3/5
Investing in art through Masterworks has risks, including concentration in a single artwork, limited insurance coverage, market volatility, and uncertainty in the secondary market.
Moderate Risk
3/5
Investing in Streitwise involves risks such as market fluctuations affecting real estate values, limited liquidity with a one-year lockout period and potential for delayed redemptions, discounts on early redemption reducing investment value, concentration in specific real estate markets, reliance on management's decision-making, regulatory changes impacting operations, and sensitivity to interest rate changes.
Moderate Liquidity
2/5
You have the option to trade shares on the platform's secondary market, but there are certain restrictions on what and how you can trade.
Minimum Liquidity
1/5
Streitwise's Redemption Plan offers investors a structured way to sell their shares back to the company, starting after a one-year lockout period. Redemption before five years involves a discount, with full NAV redemption available after five years.
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Low Return
7.3 %
Streitwise has offered an average annualized dividend yield of 7.3% since 2020. Future dividends depend on factors like tenant quality and maintenance costs, and cannot be guaranteed.
Long-term Investment
5+ years
Streitwise targets long-term investments, ideally over five years, to avoid early redemption discounts and maximize returns. There's a one-year lockout period, emphasizing the long-term approach.
Who can invest
International
Masterworks welcomes individuals, corporations, or entities from any location, including the United States.
Who can invest
International
Streitwise is open to both accredited and non-accredited investors, including international participants, with some investment limits for non-accredited investors to ensure their financial safety. International investors can join with certain conditions and may face delays in processing.
Moderate Volatility
3/5
Art market fluctuations can lead to rapid price increases and declines, posing risks for short-term investors who may lose a significant portion of their capital.
Moderate Volatility
3/5
Assets on the Streitwise platform, mainly commercial real estate, typically show lower volatility compared to stocks or cryptocurrencies, due to the slower pace of value changes in real estate. However, factors like economic shifts, interest rate changes, and market conditions can still cause fluctuations, albeit over longer periods.
Regulation and audits
SEC Regulated
Masterworks provides SEC-approved offering circulars for each artwork, allowing public investment. AGD Legal reviews art investments annually.
Regulation and audits
SEC Regulated
Streitwise is regulated under Regulation A+ of the JOBS Act, allowing it to sell securities to both accredited and non-accredited investors with SEC oversight. Although not specified, companies under this regulation typically must submit audited financial statements annually, conducted by independent firms, ensuring transparency and compliance.
Insurance
Yes
Artworks are insured for up to $500 million by Lloyd's of London, but coverage may not fully match the artwork's value.
Insurance
No
Streitwise has not specified the types of insurance it holds for its operations or properties. Typically, real estate investments are covered by property, liability, and business interruption insurance.
Payouts
Dividends
Streitwise pays dividends quarterly, about 10 days post-quarter end, offering payment via check, direct bank transfer, or through a dividend reinvestment program.
Withdrawals
Investors should wait for the company to sell the painting to receive their share of the proceeds, after deducting fees.
Withdrawals
Investors can request to redeem their Streitwise shares after a one-year lockout period, with redemptions processed quarterly. Early redemptions (before five years) face discounts, while shares held for five years or more are redeemed at 100% NAV. Quarterly redemption limits may delay processing.
Extra Fees
Yes
Masterworks charges a 1.5% yearly fee in equity, takes a 20% cut on art sales profits, and has a one-time sourcing fee per investment.
Extra Fees
No
Streitwise charges a straightforward 2% annual fee on investments, taken from dividend payments, not the principal. There are no additional or hidden fees, making its fee structure transparent and investor-friendly.
Taxes
Tax Form
US taxpayers: subject to collectible gains rate (capped at 28%), unless owning 10%+ of a single painting. Masterworks provides a free Consolidated Tax Statement. Foreign investors: no US taxes or tax withholding.
Taxes
Tax Form
Streitwise provides a Form 1099-DIV for tax reporting by January 31 each year, detailing dividends which may be taxed as return of capital, capital gains, or ordinary income.