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 we only charge 3% up-front and 2% ongoing. Simple, easy, fair.
For the up-front fee: The investor retains 100% of the total shares purchased. Streitwise reimburses our Sponsor 3% of the total proceeds for organizational and offering costs with 97% towards the investment. This is a one-time fee reimbursed to the Sponsor and occurs for any new share issuances. For example: If you invest 500 shares at $10/share ($5,000), $4,850 (97%) goes towards the REIT and $150 (3%) goes to the Sponsor. You will still own 500 shares.
For the ongoing fee: Streitwise is also managed by an affiliate of the Sponsor which requires disclosure of the 2% annual management fee as part of the operating expense. An investor does not lose 2% of their investment annually as a result of this fee, the fee is part of the operating expense of the REIT which effects the taxable income that is the basis for dividend payments.
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.
How do we fare against other popular offerings?
While a REIT offering can claim to be low cost if it doesn’t charge investors any up-front fees, the sponsor and manager can charge the REIT fees, making “low fee” or “zero fee” claims as disingenuous. The fees may not be directly charged to investors, but they are paid by the REIT, which is funded by investor capital. Just because investors aren’t paying the fees directly doesn’t mean they don’t impact returns.
What other’s have said about Streitwise fees:
- The Real Estate Crowdfund Review, a non-affiliated rater of real estate platforms rated us as the Best Fees out of all Core-Plus REITs open to non-accredited investors.
- The Motley Fool: “Fee structure aligned with investors: 3% up front fee, plus 2% annualized asset management fee. It also doesn’t collect any disposition fees if a property is sold, removing the incentive to sell a property that it may be in REIT investors’ best interest to retain.”
- TheCollegeInvestor: “Transparent fee structure” / “One thing that we like about Streitwise is that it has very transparent fees especially compared to other platforms. That 3% upfront may seem high. But when you look at other platforms, they may advertise a lower up-front fee, but then have many “hidden fees” within their funds or what sponsors charge.”
- WalletHacks: “There are no hidden fees, like advisory, disposition, waterfall, or loan service fees. There are also no commission fees involved in the purchase of your investment in the trust.”