Investing in Alternatives

[RadioRob]

I've started moving some money into some of the alternative investment firms such as Yieldstreet.   Given the heavy market fluctuations, it seemed like a good point to diversify the portfolio a bit.  What has your experience been with some of these companies such as Yieldstreet, Fundrise , Cadre, and PeerStreet?

[+ augustus]

3 hours ago, RadioRob said:

I've started moving some money into some of the alternative investment firms such as Yieldstreet.   Given the heavy market fluctuations, it seemed like a good point to diversify the portfolio a bit.  What has your experience been with some of these companies such as Yieldstreet, Fundrise , Cadre, and PeerStreet?

Just remember.....these projected outsized returns are ALWAYS based on a model that uses LEVERAGE, which is why they often blow up.  

[Guest]

2 hours ago, augustus said:

Just remember.....these projected outsized returns are ALWAYS based on a model that uses LEVERAGE, which is why they often blow up.  

Ditto @augustus   I’ve looked at some.  The only guaranteed yield I’ve seen is what Yieldstreet gets on their cut.  The loan to deposit ratio in banks is at an all time low right now. So, loans are cheap.  If a developer goes to yieldstreet and pays those returns, beware the underlying risk profile.  They either lack capital or there’s high risk.  No one ever came to me with a bad proforma suggesting I should invest in their deal. 

Edited April 18, 2022 by BnaC

[KeepItReal]

5 hours ago, RadioRob said:

I've started moving some money into some of the alternative investment firms such as Yieldstreet.   Given the heavy market fluctuations, it seemed like a good point to diversify the portfolio a bit.  What has your experience been with some of these companies such as Yieldstreet, Fundrise , Cadre, and PeerStreet?

You may find this useful: https://www.mymoneyblog.com/peerstreet-case-study-beverly-hills.html

I like how Jonathan, the owner of the site outlines pros and cons. Search his site if you have a specific service/product in mind,  he's been at this for a while. 

[handiacefailure]

If you are looking to diversify and don't need the money for at least a year look into Ibonds.   Principal is secure at least so you can't lose money and the interest rate is expected to be 8 to 9 percent for the next half.   Only thing is you can't touch if for the first twelve months and if you live in a state with high income taxes, like I do, the interest isn't subject to state income tax.

 

I wish I could have invested more than $20K this year in them