Streitwise is a new investment company that gives users affordable access to investing in commercial real estate. Streitwise is one of the real estate investing platforms that’s formed in the last few years, but instead of being a real estate crowdfunding platform or a marketplace, they offer a private Streitwise REIT.
An REIT (or real-estate investment trust) is a company that owns and manages solely cash-flowing real estate. Streitwise is open to non-accredited investors, and can be an affordable way to participate in real estate investing. Streitwise was founded in 2016 and is sponsored by Tryperion partners.
Who is Streitwise?
Streitwise is an investment company specializing in real estate investing through Real Estate Investment Trusts (REITs).
REITs allow investors to own shares in real estate without actually owning, managing, or maintaining physical properties.
Why choose Streitwise?
In this Streitwise review, we will review how Streitwise focuses on owning real estate assets for the long term. They find reliable, creditworthy tenants for commercial property in non gateway markets and avoid high priced coastal markets.
Their tenants can be counted on to provide steady cash flow from rental income through long term leases. Investors earn money through dividends, and the REIT is also considered an equity REIT so investors can also earn through long term capital appreciation.
Streitwise has provided strong historical returns, even through the pandemic. They’ve had 20 straight quarters of 8% or higher dividends. Also, they offer more liquidity than many other private REITs, requiring a lock-up period of only one year.
By law, Streitwise must return a minimum of 90% of their taxable income as dividends to their shareholders, and REIT investors are deduct up to 20% of their dividend income. Streitwise provides support for retirement accounts, and users can invest in a self-directed IRA or solo 401(k).
Streitwise’s easy-to-use mobile app gives the user convenient access to their real estate portfolio. In total, Streitwise has $28 million invested for active investors.
- Focus on cash-flowing real estate investing
- Available to non-accredited investors
- Consistent high historical returns
- Better liquidity than most
- High minimum initial investment compared to some competitors
- High fees for early share redemption, and one year lock-up period
- Limited Offerings, only two commercial properties
- Short Track Record
Requirements to Start Investing With Streitwise Review
Accredited vs. Non-accredited investor
Streitwise allows both accredited and non-accredited investors to make commercial real estate investments. However, non-accredited investors are limited to real estate investments of amounts up to 10% of their individual or joint net worth, or 10% of individual or joint annual income for the most recent 2 years.
According to the Securities and Exchange Commission, accredited investor status is:
Either earned single taxable income exceeding $200,000 (or $300,000 with a spouse) in the 2 consecutive years prior, with an expectation to earn the same for the current year. Or have a net worth over $1 million alone or with a spouse, with net worth excluding the net asset value of their primary residence.
Account and Costs
Streitwise requires a minimum initial investment of $5,000, or 500 shares. This minimum investment has recently gone up from $1000. Streitwise is a low-fee REIT. They charge a 3% upfront investment fee, combined with an additional 2% annual management fee. The ongoing annual fee is typically taken out of dividend payments, so the investor doesn’t lose part of their investment.
Dividend reinvestment program allows investors to roll dividends back into the investment to gain more shares, and earn more dividend income later. Also, Streitwise has annual dividend rates of 10%, so Steitwise can increase the income portion of an investor’s portfolio, allowing them to contribute more.
An initial investment is locked up for the first year. However, if an investor wishes to redeem a share they can do so at a discount for up to 5 years, after which they will receive full value. Also, customers are able to use Bitcoin or Ethereum to fund their accounts. Streitwise also offers self directed IRAs, which are similar to regular IRAs in that they have a traditional and Roth option, but SDIRAs allow the user to invest in alternative investments.
Streitwise offers an impressive collection of articles on their website to help users educate themselves about commercial real estate, investment strategies, independent financial advice, and other related topics.
Money invested will not be protected under SIPC or FDIC insurance. This means that if Streitwise were to go out of business, investors could lose a lot of money.
Streitwise’s co-owners have over $5 million of their own skin in the game, so they are clearly showing that they believe in their service. Streitwise supports limited diversification. This is important for investors to consider when looking at their investment portfolio. Individual investors will want to consider their personal financial situation and may want to seek professional financial advice.
Common questions I get asked about Streitwise
These are the most common questions I get asked about Streitwise, so I will try to answer these as best I can, to give you a better view on whether Streitwise is the right investment choice for you.
Is Streitwise a good investment?
Streitwise is an excellent privately traded REIT, but it’s a risky investment. It’s important to understand how the private REIT will fit into your overall personal finance investment strategy before putting money into real estate investments.
When it comes to a showdown between a private REIT and rental properties, it’s tough to say whether one is better than the other for personal finance, however Streitwise investors do earn from long term capital appreciation.
Is Streitwise publicly traded?
Unlike publicly-traded REITs that allow you to buy and sell shares on the market exchanges, Streitwise’s REIT is a private fund. And unlike most private REITs, Streitwise’s REIT is available to both the accredited investor and open to non-accredited investors to invest in commercial real estate.
Are REIT dividends taxable?
The majority of REIT dividends are taxed as ordinary income up to the maximum rate of 37% (returning to 39.6% in 2026), plus a separate 3.8% surtax on investment income.
Taxpayers may also generally deduct 20% of the combined qualified business income amount which includes Qualified REIT Dividends through Dec.
What are the tax advantages of investing in REITs?
There are several tax advantages to investing in REITs that aren’t available with other investable companies:
- Pass-through deductions: REIT investors can deduct up to 20% of their dividends.
- No double taxation: REITs are not taxed at the corporate level which avoids the “double-taxation” of corporate tax and personal income tax.
- Depreciation: Allows you to reclassify certain dividends from “ordinary income” to “return of capital”.
Can foreign residents and/or non-US citizens invest?
Yes, it is possible to invest in commercial real estate investment properties as a foreign / non-US resident and as a non-US citizen. Subject to certain limitations and clearances, we are able to accept international investors. Those with a US-based bank account will be able to invest through their bank and those without a US-based bank account will need to complete a wire payment. On-boarding of foreign investors, registration and setup of the investor center, and delivery of physical correspondence may be delayed relative to domestic investors.
What is the advantage of Streitwise over publicly traded REITs?
The advantage of Streitwise is potentially higher dividends by accessing commercial property investments not available through public market REITs. Consistent cash flow and consistent share prices means investors have generated large gains on their returns from their reit investments in real estate markets. There’s potential for large gains in the public stock market but dividend payouts are often smaller at 2-5% and at larger risk for fluctuations in prices. Our share prices are set quarterly unlike publicly traded REITs so there’s often more volatility as publicly traded REITs are more closely tied to the stock market. The main drawback is liquidity as they can’t be instantly sold which means you are not paying the liquidity premium like you would with publicly traded stocks.
Is Streitwise trustworthy?
Streitwise currently has an A+ rating with the Better Business Bureau. Ratings range from A+ to F, so this indicates that — according to the BBB’s standards — the investment platform interacts exceptionally well with its customers. Their co-owners have a percentage of their net worth as their own “skin in the game”.
Are returns guaranteed?
Similar to any investment, there is no guarantee of a return of principal or any return thereon. The real estate market is cyclical and it is difficult to know how and when the market will change. While they cannot guarantee any future performance, their most recent dividend equated to a 8.4% annualized dividend based on the original share purchase price of $10/share. The timing and amount of an investor’s return is not guaranteed, and past performance is not indicative of future returns.
How long can an investor stay invested in Streitwise?
Once you get past the 5-year Stockholder Redemption schedule, the Offering is good as long as they qualify with the SEC.
No public market currently exists for their shares, and while they may attempt to effectuate a liquidity event within approximately ten years from the completion of this offering, they are not required to effectuate a liquidity event by any specific date.
If you are able to sell your shares through our stockholder redemption plan, through secondary market sales or otherwise, you may have to sell them at a discount to their fair value.
What’s a real estate investment trust (REIT?)
A Real Estate Investment Trust, or REIT, is a tax-advantaged company that owns income-producing commercial properties and distributes the cash flow to investors in the form of dividends.
In general, a REIT is an entity that:
Combines the capital of many investors to acquire or provide financing for a diversified portfolio of real estate properties under professional management;
Is able to qualify as a “real estate investment trust” for U.S. federal income tax purposes and is therefore generally not subject to federal corporate income taxes on its net income that is distributed, which substantially eliminates the “double taxation” treatment (i.e., taxation at both the corporate and stockholder levels) that generally results from investments in a corporation; and
Pays dividends to investors of at least 90% of its annual income.
What is the expected dividend yield?
Since inception, we’ve delivered over 8% annualized quarterly dividends (net of fees).
Since portfolio performance is based on a number of variables, including tenant mix and creditworthiness, as well as maintenance, repairs, and upgrades, to name a few, we are unable to predict at this time how the dividend will be impacted, if at all. We aim to provide investors with the best dividend yield possible, while still maintaining a strong portfolio with the ability to take advantage of buying opportunities. There can be no assurance as to when, if, and at what level, dividends will be paid as that is a decision our Board of Directors makes each quarter.
Can I invest through a self-directed IRA or 401(k) retirement account?
Generally, yes. You may make an investment through your IRA or other tax-deferred retirement account. We are approved with custodians such as Millennial Trust Company, New Direction Trust Company, Advanta IRA, Equity Trust, Strata Trust Company, and more.
Your investment may be subject to our discretion to:
(i) not accept your IRA and other retirement account investment, or
(ii) redeem your interest if, in either case, there is a material likelihood we would be deemed to be a fiduciary or be at risk of forfeiting our REIT tax status.
What am I investing in?
What you’d be investing in is an online REIT which includes ownership in the buildings in the offering as well as any future properties they add to the offering. Every quarter we aim to distribute a dividend to investors which can be either through a check, direct deposit, or reinvested. As we acquire more investors we aim to purchase more properties to add to the offering which you’ll also own a share of.
Streitwise aims to acquire and manage a diversified portfolio of value oriented investments home to creditworthy tenants that provide a source of steady and growing dividends. They focus on non-gateway markets typically more fairly priced at higher capitalization rates (or cap rates) and finance our acquisitions with modest leverage to minimize the risk of principal loss. Their current offering is structured as a non-traded real estate investment trust, or “REIT,” under Regulation A+ of the JOBs Act.