The Benefits of Passive Income Over Managing Your Investment Property

Picture this: the work week is finally over, your bags are packed, and you’re headed to your favorite weekend spot for a little R&R. Your phone rings – no it’s not your Uber to the airport – it’s your tenant. This can’t be good.

Fast forward 24 hours – instead of wading in the hotel pool, you’re wading in water flooding your investment property while your insurance adjuster and plumber are nowhere to be found.

Investment properties aren’t all rainbows and sunshine like the home flipping shows make them out to be. Sure they can be lucrative, but they’re not for the faint of heart. A successful investment property requires an extraordinary amount of time, expertise, and capital.

With that in mind you may want to consider these gating questions before you take the plunge on an investment property:

Am I willing to expose all or a significant portion of my savings to a single investment?
Am I willing to dedicate the time and attention needed if the property requires renovation?
Am I willing to endure the hassles of finding/dealing with tenants and upkeeping the property?
If something goes wrong, insurance claim or otherwise, can I handle it as well as an experienced real estate investor?

Even if you answered “yes” to all the above, here’s one final question: is it worth all the time that’s required? If the answer is “yes” again – have at it. We wish you the best of luck.

But if you’re looking to buy an investment property and looking to maximize the return on your investment and your time, passive real estate investing through an online real estate platform could be for you.

What is Passive Real Estate Investing?

Passive real estate investing is where investors commit their money to professionals who are well-versed in the nuances of real estate ownership and management to invest on their behalf. Historically, there have been only two general passive real estate investment types:

Private Equity Funds – Private equity funds are where investors pool their money together into a single fund to make investments. But everyday investors don’t have the wherewithal to meet the investment minimums, which can start at $100,000 and grow exponentially. Further, private equity funds lack any sort of liquidity for as long as 10 years.
Traded REITs – Traded Real Estate Investment Trusts, or “REITs,” have been the historic avenue for passive real estate investment unable to meet the minimum investment requirements of private equity funds. However, since they’re publicly traded on major stock exchanges, their performance can be impacted by broader market volatility. Traded REITs also command a “liquidity premium” for being freely tradable, resulting in lower average dividends.

Online Real Estate Platforms – Passive Real Estate Investing for the Digital Age

Thankfully, passive real estate investing has joined the digital revolution. Online platforms such as Streitwise have made passive investing less expensive and more accessible to everyday investors. But unlike a lot of its peers with high investment minimums, excessive and hidden fees, and limited real estate operating expertise, Streitwise was formed by real estate veterans to provide everyday investors exposure to a diverse portfolio of institutional quality real estate through a fair and transparent online platform.

So if you’re having second thoughts about buying an investment property – maybe it’s time to put down your hammer, pick up your smartphone, and join the digital real estate revolution.

Alex Wills

Mr. Wills is the Marketing Director and Head of Product for Streitwise.

Prior to joining Streitwise, Mr. Wills was Head of Paid Media at Bitcoin IRA and Fortress Gold Group. Previously, Mr. Wills was the Director of Lead Generation at GTMA, a real estate marketing agency, where he founded the paid media department that oversaw a large nationwide portfolio of multifamily properties. Mr. Wills holds a Bachelor of Science degree in Marketing from the University of Florida.

SW Manager, LLC (“Manager”) is a wholly-owned subsidiary of and controlled by Tryperion Holdings, LLC (our “Sponsor”). Manager is the external manager and advisor of 1st Streit Office Inc. (“1st Streit Office”) and 1st Streit Office Operating Partnership LP (our “Operating Partnership” and, together with 1st Streit Office, “Our Current Offering”). 1st Streit Office is the sole general partner of our Operating Partnership, through which all of our assets will be owned and substantially all of our operations will be conducted. All references herein to “Streitwise” refer, as applicable, to Manager, 1st Streit Office, the Operating Partnership, or any of their affiliates (collectively, the “Streitwise Entities”). Unless explicitly stated to the contrary, all references to “we,” “us,” and/or “our” shall refer to the Streitwise Entities. By using Streitwise, you accept our Terms of Service and Privacy Policy.

An offering statement regarding this offering has been filed with the SEC. This offering is structured as a non-traded real estate investment trust, or “REIT,” under Regulation A+ of the JOBS Act. The SEC has qualified that offering statement which only means that Streitwise may make sales of the securities described by that offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. You should read the Offering Circular before making any investment which is available here: streitwise.com/oc

You may have been referred to Streitwise by a third-party (“Solicitor”). Compensation to any Solicitor may be up to $200 per email registration. A Solicitor may promote and/or may advertise Streitwise’s investment services and may offer independent analysis and reviews of Streitwise’s services. Streitwise and any Solicitor are not under common ownership or otherwise related entities. We cannot ensure the accuracy of the data provided from any Solicitor.

Performance: Past performance is not a guarantee of future results. All historical returns, target returns, or hypothetical projections may not reflect actual future performance.
Risk: This investment involves a certain level of risk and may result in partial or total loss. We cannot guarantee that we will reach our target return for our investors.
Tax: Prospective investors should confer with their tax advisors regarding the tax consequences based on their particular circumstances. Neither Streitwise nor any Solicitor assumes responsibility for the tax consequences for any investor.
Liquidity: Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term should not invest. See Stockholder Redemption Plan in the OC.

¹ Dividends & returns: Current annualized dividend based on the most recent dividend declaration as of the quarter ending 9/30/2024. Dividend return calculations based on NAV at the time of dividend return. 3Q24 dividend payout of $0.13/share equates to a 7.2% dividend based on the current NAV. The REIT has averaged a 7.2% annualized dividend yield since 2020 and a 8.3% annualized dividend yield since 2017 based on the average NAV for the respective periods. See Quarterly Report for all returns history.
² Source: FTSE NAREIT All Equity REITs vs S&P 500.
³Sponsor Performance: Related to investments by Sponsor, Tryperion Holdings, as part of one of its prior programs, and not of any of the Streitwise Entities. Reflects gross IRR on realized investments in the Sponsor’s investment portfolio since inception. Sponsor performance data as of 4Q23.
⁴Target returns: We will seek to invest in real properties and other real estate-related assets that we believe can produce a strong return through a combination of cash flow and appreciation. We cannot guarantee that we will reach this target return for our investors.

This page may contain forward-looking statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in the Offering Circular. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

© 2024 Streitwise. All Rights Reserved. Apple, the Apple logo and iPhone are registered trademarks of Apple Inc. Streitwise is not affiliated with nor related to NAREIT or its annual REITwise conference.