To the extent returns are generated on any investment, they would be reflected through (i) distributions in the form of dividends, and (ii) potential appreciation in asset value. The timing and amount of an investor’s return is not guaranteed, and past performance is not indicative of future returns. Detailed information about our current offering is available at http://www.streitwise.com/oc.

Streitwise applies 3% of your invested funds towards organizational and offering costs. This one-time amount does not reduce the shares you own.

Our Sponsor is paid a 2% annual management fee and is reimbursed for acquisition and operating expenses. For the on-going 2% fee, that’s taken out of the distribution and all returns quoted are net of fees. Our fund does not charge acquisition fees, servicing fees, special servicing fees, financing fees, or disposition fees.

Full details of our compensation and fees is included in our Offering Circular.

We expect that we will declare and pay dividends on a quarterly basis, and that the dividend rate will be set at a level that we believe will be consistent and sustainable over time. 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.

Since inception, we’ve delivered over 8% annualized quarterly dividends with a target of 8-9% going forward. You can find more information on our historical dividends on the SEC’s website and in our Historical Performance.

Streitwise supports investments from individuals, companies (corporations, LLCs, etc.), trusts, and self-directed IRAs or 401(k)s. Step-by-step instructions on how to enter your investment information can be found here:

Individuals
Companies
Trusts
Self-directed IRA or 401(k)

Yes, once you are an investor you can opt in dividend reinvestment. To enroll in dividend reinvestment, follow these steps HERE.

For more information on DRIP, see Appendix C in the Offering Circular.

Generally, yes. You may make an investment through your IRA or other tax-deferred retirement account.

You should note that we are not undertaking to provide impartial advice or give you advice in a fiduciary capacity. However, 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 Real Estate Investment Trust tax status.

Streitwise is an online real estate investment platform that aims to provide investors exposure to a portfolio of primarily cash flowing properties located in markets where we feel the risk-return characteristics are favorable. More information on the Offering can be found here.

We are a real estate investment trust, whose goal is to provide a professionally managed, diversified portfolio consisting primarily of high-quality office properties. You can find detailed information about the REIT and determine whether this investment fits your personal investment and risk parameters by reviewing the detailed Offering Circular.

For as little as a $1,000 initial investment, Streitwise gives both accredited investors and unaccredited investors alike the ability to generate passive income through an investment in a diversified portfolio of institutional-quality real estate with an ultra-low cost structure.

Additionally, the Streitwise portfolio is directed by a team of seasoned real estate investment professionals who possess considerable real estate investing experience.  Streitwise’s founders have acquired and/or managed over $5.4 billion of real estate investments spanning all major property types.

We are not a platform, but a REIT that invests in a portfolio of stabilized, commercial office properties. To compare us to other REITs open to non-accredited investors, please see this page.

A Real Estate Investment Trust, or REIT, is a tax-advantaged company that owns income-producing properties and distributes the cash flow to investors in the form of dividends. Learn more about REITs here.

We started Streitwise because we saw an opportunity to provide access to institutional quality commercial real estate for both non-accredited and accredited investors alike, and were excited to be able bring new federal regulations and technology together to generate passive income for everyone.

Subject to certain limitations and clearances, we are able to accept international investors. On-boarding of foreign investors, registration and setup of the investor center, and delivery of physical correspondence may be delayed relative to domestic investors.

Go here for full details about how to get started as an non-USA investor.

Streitwise applies 3% of your invested funds towards organizational and offering costs. This one-time amount does not reduce the shares you own.

Our Sponsor is paid a 2% annual management fee and is reimbursed for acquisition and operating expenses. For the on-going 2% fee, that’s taken out of the distribution and all returns quoted are net of fees. Our fund does not charge acquisition fees, servicing fees, special servicing fees, financing fees, or disposition fees.

Full details of our compensation and fees is included in our Offering Circular.

Out of the up-front fees charged (3%), no amount will be taken out of the shares you’re purchasing. 97% of what you invested will go to the REIT & Operating Partnership as proceeds. The 3% up-front fee is used for offering and organization expenses. Your ownership at any given time is the NAV multiplied by the shares you own so you would own 100% of the proceeds assuming you have held your investment past the Redemption Fee Schedule.

We just have the transparent 3% up-front and 2% ongoing management fee. For more information about those the dangers of those hidden fees see here.

We expect that we will declare and pay dividends on a quarterly basis, and that the dividend rate will be set at a level that we be believe will be consistent and sustainable over time. 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.

Since inception, we’ve delivered over 8% annualized quarterly dividends. You can find more information on our historical dividends on the SEC’s website and in our Historical Performance.

To the extent returns are generated on any investment, they would be reflected through (i) distributions in the form of dividends, and (ii) potential appreciation in asset value. The timing and amount of an investor’s return is not guaranteed, and past performance is not indicative of future returns. Detailed information about our current offering is available at http://www.streitwise.com/oc.

Dividends can be sent by physical check or transferred directly into the bank account you specify in your Investor Center. You can also enroll in the dividend reinvestment program.

So far, the dividend distribution has come from free cash flow, but we cannot guarantee we will be able to maintain this level of dividend, nor can we guarantee any sort of return.

While we cannot guarantee any future performance, our most recent dividend equated to a 8.4% annualized dividend based on the original share purchase price of $10/share. You can find all the details in our Offering Circular here.

Yes, there are risks. 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.

The Streitwise principals have over 40 years of combined real estate investing experience and over $5.4 billion in transactions, across market cycles.

All investment documents are processed electronically on our website through technology and stock transfer agent services provided by FundAmerica and Computershare. These are both established and secure SEC-compliant platforms. This allows for an efficient and seamless investment process, while ensuring the authenticity and security of your information. Once your investment is processed and funds are received, you will be emailed a confirmation and your subscription agreement.

We are not a platform in the vein of most of the other online crowdfunding sites. An investment in 1st Streit Office, Inc., is a direct investment in a REIT operating under the direction of the Board of Directors, who are the principals of our sponsor, Tryperion Partners AND Streitwise. We are not investing or administering investment in properties managed by unaffiliated third-parties. We are real estate investors first, using Streitwise as a means of raising capital, not a technology platform to raise money to invest in other groups’ real estate investments.

What that means in terms of bankruptcy protection is that there is no “site” that can go bankrupt through which you would lose the ability to administer the investment. The risk that your investment would be subject to a bankruptcy would apply to a bankruptcy of the REIT itself or the Manager/Sponsor, in which case a standard market bankruptcy process would apply. Shareholders have the ability to vote on the Board of Directors of the REIT as outlined throughout the circular (with respect to your question, not limited to Bankruptcy only).

The three founding partners of Streitwise have a total of over 500,000 shares ($5 million total) invested in the REIT. You can see more about our founding partners here.

Investments through Streitwise must be reported to the Internal Revenue Service and be cleared for anti-money laundering checks. As such, we are required to obtain your social security number and date of birth to process the investment.

There are several tax advantages to investing in REITs that aren’t available with other invest-able companies:

1. Pass-through deductions: REIT investors can deduct up to 20% of their dividends.
2. No double taxation: REITs are not taxed at the corporate level which avoids the “double-taxation” of corporate tax and personal income tax.
3. Depreciation: Allows you to reclassify certain dividends from “ordinary income” to “return of capital”.

For more information on the tax benefits of REIT investing click here.

Unless your investment is held in a qualified tax-exempt account, your dividends will generally have tax implications. Dividends will typically come in three forms – (i) return of capital dividends (which are generally not taxed and instead reduce your tax basis for future capital gain consideration), (ii) capital gain dividends (which are generally taxable at long-term capital gain rates), or dividends from current or accumulated earnings or profits (which are generally taxed at ordinary income rates). However, because each investor’s tax considerations are different, we recommend that you consult with your tax advisor.

Your Form 1099-DIV tax information, if required, will be provided by January 31 of the year following each taxable year.

IRS Form 1099-DIV is sent to investors annually and provides the tax character of any distributions (dividends and any other distributions) paid to you during the tax year.

We cannot provide tax advice, so we’d recommend if you have any questions about reporting your 1099-DIV provided by 1st Streit Office please contact your tax advisor. In general, pursuant to the 2017 tax reform a 20% reduction is applicable for REIT dividends. The remainder is taxed at the taxpayer’s marginal income tax rates.

There is a 1 year lockout, then you will have a quarterly option to participate in our Stockholder Redemption Plan, subject to certain restrictions that are fully explained in the Stockholder Redemption Plan of the Offering Circular.

Our Redemption Policy has a one year lockout period from the date of each investment (excluding dividend reinvestments) before shares can be redeemed. Between years 2 and 5, there is a discount applied to principal based on the schedule as outlined here: https://streitwise.com/redeem-your-funds/

We pay out redemptions once at the end of each quarter. Our Offering Circular limits the amount of shares we are able to redeem in any given quarter. If the maximum share redemption is reached, we will redeem funds on a pro rata basis each quarter until shares are fully redeemed.

There is no stated term on the investments/the REIT, but as each of our investments reach what we believe to be its optimum value during the expected life of the Company, we will consider disposing of the investment and may do so for the purpose of either distributing the net sale proceeds to our stockholders or investing the proceeds in other assets that we believe may produce a higher overall future return to our stockholders. We anticipate that any such dispositions typically would occur during the period within approximately ten years from the termination of this offering (subject to pursuing alternative means of providing liquidity). You can find additional details on the disposition policies in the Offering Circular by searching for Disposition Policies.

Right now the REIT consists of an office park in St. Louis featuring the Panera Bread headquarters and an office in Carmel, Indianapolis. We are currently actively pursuing additional properties. We do intend on acquiring, over time, a diversified portfolio of quality office properties.

Yes.

An investment in the REIT means an ownership interest in all currently owned properties as well as all future acquisitions.

While we cannot describe the pipeline in detail given the preliminary nature of the opportunities, we are currently seeing a pipeline to acquire high quality office properties in markets where we feel that the risk-return characteristics are favorable. We do intend on acquiring, over time, a diversified portfolio of quality office properties.

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As of September 30, 2020, AUM is at $80.8mm. Right now the REIT consists of an office park in St. Louis featuring the Panera Bread headquarters and an office in Carmel, Indianapolis. We are currently actively pursuing additional properties. We do intend on acquiring, over time, a diversified portfolio of quality office properties. You can get more details about what’s in our Current Offering here.

As of September 30, 2020, current leverage is 53% across the portfolio.

You can find a detailed understanding of how we approach leverage in our Offering Circular. As a good place to start, I will point you to Q&A p.5: “Our targeted portfolio-wide leverage, after we have acquired a substantial portfolio, is between 40-60% of the greater of cost (before deducting depreciation or other non-cash reserves) or fair market value of our assets.

During the period when we are acquiring our initial portfolio, we may employ greater leverage on individual assets (which will also result in greater leverage of the interim portfolio) in order to quickly build a diversified portfolio of assets. Our Manager may from time to time modify our leverage policy in its discretion.” Please see “Investment Objectives and Strategy” for more details.

It’s not a waterfall structure. Just the fees listing in the Offering Circular which are the upfront fee and the asset management fee.

Financial and acquisition updates are filed with the SEC and can be found on the EDGAR website.

For underwriting, we do complete underwriting internally. Our focus is on downside protection, vetting tenants ability to pay, understanding the submarket and the ability to backfill vacancies as they may arise, any physical needs of the building, among many other factors.