As of Q2 2023, the minimum is $3,505 based on the NAV of $7.01 (500 x $7.01).
We expect that we will declare and pay dividends on a quarterly basis, about 10 days after each financial quarter ends.
You will be able to redeem your shares after one year through our share redemption program, with no penalty after five years. However, we encourage all investors to take a long term approach to their investment with Streitwise.
Note: There is a one-year lockout period from the date of your investment before you can request a redemption . There is no penalty for holding your shares for 5 or more years. However, a discount will be applied to your redemption between years 2 and 5.
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.
The current dividend target for 2023 is 5-6%.
Investing with Streitwise means you own your percentage interest of the REIT’s portfolio – without further layers of fees and profit sharing squandered to third-party sponsors. We are the sponsor and charge a 2% annual fee. An investor does not lose 2% of their investment annually as a result of this fee, the fee is typically taken out of the dividend payment.
All dividends quoted have been net of fees. We do not charge any other fees such as waterfall / profit-sharing fees, acquisition fees, developer fees, construction management fees, servicing fees, liquidation fees, property management fees, financing fees, disposition fees, or any other hidden fees that other non-traded REITs often hide from prospective investors by burying the hidden fees in the offering documents.
Yes; This is a rare Offering open to both accredited and non-accredited investors in accordance with the “qualified purchaser” requirements included in our Offering Circular.
If you are a non-accredited investor and a natural person, your investment may be no more than 10% of the greater of (i) your individual or joint net worth, excluding the value of your residence, and (ii) your individual or joint income in each of the two most recent years, as well as your expected income in the current year.
There are several tax advantages to investing in REITs that aren’t available with other investable companies:
We do now have an iOS app for Streitwise investors that enables them to view their holdings, add more funds, access quarterly returns & tax returns, enroll in dividend reinvestment, among more features. We do not currently have an Android app available.
Note: The iOS app is in beta testing.
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.
In general, a REIT is an entity that:
Among the three founding partners, their current skin-in-the-game in Streitwise is over $5 million (500,000 shares) in the REIT. This is a high skin-in-the-game, indicating their confidence in this investment going forward as well as an alignment of interest between investor and principals.
This is a moderate / conservatively leveraged REIT. Total secured note leverage (LTV) is 50%, as of 3/31/23. Historically total secured note LTV has been 50-55% and is subject to principal paydowns and NAV.
Yes, it is possible to invest 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 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.
Yes, once you are an investor you can opt in dividend reinvestment. You can enroll in dividend reinvestment in your Investor Center.
Potentially higher dividends by accessing properties not available through public market REITs. Non-traded REITs aren’t directly subjected to the volatility of the stock market since they aren’t publicly traded. This can be advantageous during periods of market instability and may offer a more predictable stream of income.
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.
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 we 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. We 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. Our current offering is structured as a non-traded real estate investment trust, or “REIT,” under Regulation A+ of the JOBs Act.
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 Real Estate Investment Trust tax status.
This is one REIT offering made up of a portfolio of properties. As we acquire more investors we aim to purchase more properties to add to the offering which you’ll also own a share of.
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.
Investors will receive a Form 1099-DIV, if required, by January 31 of the year following each taxable year.
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 (iii) 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.
Regular income, although there are certain tax advantages of REIT income.
Our current offering is structured as a non-traded equity real estate investment trust, or “REIT,” under Regulation A+ of the JOBs Act.
Our sponsor is Tryperion Holdings, a real estate investment firm with tenured experience across various asset classes. To date, our sponsor has managed over $750 million in commercial real estate properties, over $5.4 billion total transaction experience, and generated returns of an average 25.3% IRR and 2.0x on realized investments.
The NAV is based on several methodologies including appraisals, discounted cash flows, and sales comps, amongst others.
The per share purchase price is adjusted every fiscal quarter and, as of January 1st, April 1st, July 1st and October 1st of each year, will equal the Company’s net asset value (“NAV”) divided by the number of shares of common stock outstanding as of the close of business on the last business day of the prior fiscal quarter on a fully diluted basis (“NAV per share”).
Prior to each quarter end, we file an Offering Circular supplement with the SEC disclosing the NAV per share that will be applicable for the fiscal quarter, which we refer to as the pricing supplement. See “Plan of Operation—Quarterly NAV Per Share Adjustments” for more details.
Your shares constitute an equity ownership in the portfolio. The extent of appreciation (or loss) in the value of the properties is reflected in the NAV per share. See Disposition Policies section of the Offering Circular.
There is no IRR hurdle or similar calculation. Your ownership equates to a pro-rata allocation of shares issued and outstanding of the REIT.
How would you like to generate potentially high-yield passive income, diversify your portfolio away from the stock market, and build equity through institutional-quality real estate? Streitwise allows anyone (accredited or not) to easily invest in commercial real estate normally not available to regular investors. Fill out this form to learn more.