Streitwise Review 2024

Streitwise offers all investors access to a professionally managed, tax-advantaged portfolio of real estate assets, but only via one REIT.

Streitwise is a real estate investing firm that allows investors the opportunity to purchase commercial real estate via one private equity-based REIT. The company’s single REIT is geographically focused so that its team of experienced managers can execute on their subject area of expertise. While only high-net-worth individuals and large institutional investors traditionally had access to this type of investment in the past, Streitwise now offers all investors access to a professionally managed, tax-advantaged portfolio of real estate assets.  

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Pros & Cons 

Pros Explained

• Open to all investors: Both accredited and non-accredited investors are able to invest. Accredited investors are those who have over $1 million in net worth or more than $200,000 in earned income in the past two years. 
• Dividend reinvestment opportunities: Investors have the ability to either take dividends as income or automatically reinvest into the REIT.
• 2% annual fee taken out of dividend: The 2% annual fee does not have to be paid separately, nor does it come out of the investment amount; it is taken out of the dividend payout.
• No hidden fees: Fees are straightforward and easy to understand, and there are no surprises.

Cons Explained

• Low liquidity: Investors do not have access to their money for a minimum of the first year. After that, redemption must be requested and approved.
• Portfolio is not customizable: This REIT is composed of a small grouping of investment properties that are chosen by management; investors have no option to select investments within the REIT.
• No investment research or analysis: Educational materials currently provided are quite limited in scope.
• Limited investment selection: Investors only have the option of one REIT to invest in currently. 

Company Overview

Founded in 2017, Streitwise is sponsored and managed by Tryperion Holdings. Tryperion implements value-added initiatives through direct and joint venture investments in underserved U.S. markets. Tryperion creates wealth via proactive management and leasing, innovative capital upgrades, and sensible financing plans, using its broad real estate experience and industry ties.1

Streitwise currently provides just one REIT offering, which is open to all investors. This REIT offers a diverse portfolio of institutional-quality commercial properties and is moderately leveraged, with the three founders personally holding $5 million in assets in this REIT.2

Streitwise At a Glance 

How Does Streitwise Work?

Streitwise is unique within the industry. The company originated as a way to integrate the benefits of both traded and non-traded REITs while circumventing the deficiencies. 

The company’s website describes it this way:

As of December 2023, Streitwise currently offers only one REIT comprised of institutional-quality commercial buildings. This offering is available to both accredited and non-accredited investors, requiring a minimum investment of $3,505, or 500 shares. The current dividend target of this REIT is 5% to 6%. The company has generated dividend income for investors since its inception, even exceeding its dividend target and providing investors with a 7.2% dividend in 2022.7 

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Key Features

Investors looking for a variety of investments or customization may have to look elsewhere. The Streitwise REIT is not customizable by investors. However, the company does intend to add future properties to this REIT over time.8 The Streitwise offering is also not a curated portfolio, as investors are not consulted on whether to buy or sell within the portfolio; those changes are automatically made by management.

While there are no caps for accredited investors, non-accredited investors are limited in how much they can invest overall. Investment by non-accredited investors includes the following restrictions:9

• Must not exceed 10% of an individual’s net worth or joint net worth with a spouse (excluding the value of a primary residence)
• Must not exceed 10% of an individual’s income, or joint income with a spouse, in the current year or for a two-year lookback period

Investing in this REIT is intended for U.S. investors; however, it is possible for non-U.S.residents or non-U.S.citizens to invest (subject to certain limitations and restrictions). U.S. investors can invest directly with a domestic banking institution, while non-U.S. investors must complete a wire payment.

Streitwise REIT investors can choose to reinvest dividends or receive their dividend disbursement via check, or it can be transferred directly to the investor’s bank account.10

Fees

Streitwise has a very streamlined and transparent fee structure: a 2% annual fee for both accredited and non-accredited investors. This 2% fee is typically taken out of the dividend payment each year so that the investor does not lose 2% of their investment each year.3 Investors who hold their shares for five years or longer will reap the full net asset (NAV) value of their investment if they decide to sell. Penalties are involved if an investor chooses to redeem their stock before the five-year mark. 

The penalty schedule is as follows:11

• Less than 1 year: No redemption allowed
• 1 year until 2 years: 90.0% of NAV
• 2 years until 3 years: 92.5% of NAV
• 3 years until 4 years: 95.0% of NAV
• 4 years until 5 years: 97.5% of NAV
• 5 years or more: 100% of NAV
• Stockholder’s death or complete disability: 100% of NAV

Transparency

Streitwise does a very good job with transparency on how the company works and what investors can expect when they invest in the Streitwise REIT. Fees are structured in a very straightforward way, with a 2% annual fee to both accredited and non-accredited investors.3 

Streitwise also lays out the fact that investing in the REIT is considered a long-term commitment, with a one-year lockout period where the investor may not request redemption of their investment and a tiered penalty scale if redemption is requested prior to being invested a minimum of five years.11

Updates and changes are sent via email, the transfer agent system, and the iOS Streitwise app. Investors can also expect to receive a 1099-DIV for tax reporting purposes by January 31, if required.12  

Liquidity

Investing in any non-traded REIT provides less liquidity than investing in a publicly traded REIT because it is not available on a stock exchange. At Streitwise, investing in the REIT offering is looked at as a long-term investment. Investors are required to make a redemption request by filling out a form on the Streitwise website. However, investors may not be able to access their money quickly, based on the restrictions in place. For instance, investors have a one-year lockout period for requesting a redemption.11 

Furthermore, there is a tiered scale of penalties for requesting redemption before holding the investment for five years or more. The company issues redemptions at the end of each quarter; however, the REIT is subject to restrictions on the number of shares that can be redeemed in any given quarter. If the maximum quarterly limit is reached, shares will be redeemed on a proportional basis until shares are redeemed in full, which can span several quarters. 

Investment Selection

Streitwise currently has one REIT offering.8 This diversified portfolio is currently comprised of institutional-quality commercial buildings, consisting of the following Class A office space and retail investments:

• Allied Solutions Building (Carmel, Indiana)
• Streitwise Plaza (St. Louis, Missouri)
• Midtown III (Carmel, Indiana)

Streitwise does not offer alternative investments beyond commercial real estate at this time. The company does, however, leave room for future investments in additional commercial properties within this REIT. 

Sectors and Domains

Streitwise offers a very straightforward, streamlined investment option, and currently only has one type of offering: commercial real estate. While it does appear that Streitwise is looking to add future investments in commercial properties to the REIT, it does not appear that the company intends to expand beyond this sector.8

Educational Offerings

Providing educational materials to investors is relatively scarce within the industry, with only about half of the real estate crowdfunding companies we reviewed offering any sort of educational materials or research. While Streitwise does not offer educational videos or webinars at this time, it does have articles on its website to provide company news and investing information.13

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Customer Support

Streitwise investors have access to the following customer support options:14

• Phone
• Email
• Online form

Investors may also choose to schedule a 15-minute call via the online appointment calendar. While there is no chatbot or live customer support, investors can expect to receive an answer to their inquiry within one business day. The level of customer support provided by Streitwise is considered standard practice within the industry. 

The Bottom Line

Investors must consider two key factors when deciding to invest in the Streitwise REIT: liquidity and customizability. Similar to many real estate crowdfunding companies, investors need to be aware that investing in Streitwise’s REIT is a long-term commitment. Following the year-long redemption lockout period, there is a tiered penalty schedule for redemption within the first five years of having the investment. The other major considerations for investors are flexibility and customizability. Streitwise currently only offers one option, and it is not customizable by investors at all.

If needing access to your cash or being able to customize your investment portfolio aren’t important factors to you, the benefit of being able to invest in a REIT with relatively low fees is quite appealing. The type of investment that Streitwise has offered to non-accredited investors is a unique opportunity to invest in commercial real estate and enjoy a good return while not incurring the ongoing costs and fees associated with investing in typical REITs.

Why You Should Trust Us

Investopedia analyzed 19 real estate crowdfunding companies and scored each based on eight major categories and 38 criteria that are crucial in evaluating the offerings and usability of these platforms. We used this data to review each company for their fees, investment selection, transparency, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999 and has been helping readers find the best real estate crowdfunding platforms since 2020.

What Is Streitwise?

Streitwise is a real estate investing company that has been around since 2017 and is sponsored and managed by Tryperion Holdings. Streitwise was created to offer the benefits of owning a REIT to investors who weren’t high-net-worth and who had a lower risk tolerance while still being able to offer a substantial dividend payout.

Is Streitwise Legit?

Yes. Since the company’s inception in 2017, it has had 26 consecutive quarters of dividend payouts, with an average quarterly dividend of 7.2% in 2022. Streitwise has a current target dividend payout of 5% to 6%. When compared to the S&P 500, the dividend payout is substantially higher, as the annual S&P 500 dividend yield averaged just 1.98% between 2009 and 2019. From 2020 onward, the dividend yield fell below 2% and has stayed below since then, ranging from about 1.2% to 1.7%.

What Is the Historical Dividend of Streitwise?

Streitwise has been able to produce a dividend for investors for the last 26 quarters, since the company’s inception in 2017. The average dividend in 2022 was 7.2%, with the current dividend target being 5% to 6%.15

What Is the Downside of Non-Traded REITs?

One of the biggest downsides of investing in non-traded REITs is that your investment is not very liquid. Streitwise has a lockout period of at least one year before investors can request their investment back. However, it is not guaranteed, as requests can be denied. If you are looking to invest but need access to your cash, then choosing a non-traded REIT is not the best option.  

How We Review Real Estate Crowdfunding Platforms

To evaluate and review real estate crowdfunding platforms, Investopedia’s team of researchers, data collectors, and industry experts spent nearly two months conducting in-depth industry research, company survey data collection, and hands-on evaluations of 19 companies. We grouped the 38 criteria that we collected, like investment selection and minimums, holding periods, and curated portfolios, into eight categories. We then scored these criteria and weighted the categories to determine which real estate crowdfunding platforms are best for both accredited and non-accredited investors:

• Fees: 15%
• Account Services: 15%
• Investment Selection: 15%
• Liquidity: 12.5% 
• Transparency: 12.5%
• Sectors and Domains: 12.5%
• Customer Support and Usability: 10%
• Educational Offerings: 7.5%

Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of real estate crowdfunding platforms. Read our full process for more information on how we review real estate crowdfunding platforms.