Yield Crowd Review: Is Tokenized Real Estate a Good Investment?

A passive income investment with a potential 8.75% return seems too good to be true. However, brothers Amariah and Obin Olsen, co-founders of Yield Crowd, are reaching these return heights with investments in real estate. 

The company Yield Crowd is an online portal that offers the world’s first diversified portfolio of real estate tradeable on the Stellar blockchain in the United States by buying and selling tokens backed by corporate bonds. 

How Does Yield Crowd Work?

Investing with Yield Crowd is only available to investors outside the United States. The real-estate portfolio consists of commercial U.S.-based real estate in the retail, multifamily, hospitality, and industrial space. Yield Crowd says that diversifying into retail and hospitality is part of their short-term strategy to boost the portfolio’s cash flow, finance the platform and pay token holders dividends. 

Is Yield Crowd a Secure Investment?

The following are reasons why Yield Crowd should be considered a secure investment:

1. The Co-founders Have a Proven Track Record 

The Olson brothers currently hold a portfolio worth $50 million in institutional class assets. They have completed over twenty real estate investments in office, residential and multifamily, and retail properties, which they privately financed using their equity and institutional debt. 

2. Yield Crowd Has Secured a Bank Loan

The fact that Yield Crowd has been able to secure a sizable bank loan worth $45 million is a strong indication that the company is creditworthy, meaning the banks are confident that Yield Crowd will be able to repay the loan easily. 

3. Member of the Forbes Finance Council

In early 2022, co-founder Amariah Olson was accepted into the Forbes Finance Council. This invitation-only finance community follows an extensive vetting process to ensure members have an impressive track record of success through personal and professional achievements and solid business growth metrics. 

How to Invest in Yield Crowd

For investors looking to jump on to this opportunity and invest in a diversified, commercial real estate fund, first visit the Yield Crowd website and sign up. After completing the details and declaring yourself a non-resident and not a U.S. citizen, investors can review details about all of the property investments. This information may also influence the amount people new to Yield Crowd are willing to invest. Investors then receive Yield tokens and dividends are paid daily. 

Benefits of Investing in Yield Crowd

1. Low Minimum and No Management Fees

Money is often a barrier for investors looking to get into real estate as start-up costs are usually high. However, with Yield Crowd, the minimum required investment is only $1,000. 

Also, Yield Crowd doesn’t charge investors regular operation or management fees. However, there is a 4.5% charge out of initial payments for investors who use a credit card to fund the investment. 

2. Liquidity

Real estate is typically a longer-term investment that cannot be easily converted back to cash. The benefit of blockchain-based trading is investors can liquidate the investment by selling their tokens on the blockchain. 

3. Passive Income Investment

Yield Crowd is a fully-managed investment that requires little work by the investors, other than the option to check in for portfolio updates. Otherwise, this investment opportunity can be left on auto-pilot. 

4. Regular Updates

Yield Crowd is entirely transparent. The properties are listed on their websites, and each investment shows such information as the cost, renovation plans, resale value, and annual returns and more.  

Risks

1. 8.75% Isn’t a Guaranteed Return

A return of 8.75% is certainly a target for Yield Crowd but isn’t guaranteed. Any poor investment decisions or unforeseen circumstances affecting market conditions are risks investors must accept. A perfect example is the many companies that had to desert their regular office space due to the pandemic. Many businesses were shut down because of the resulting economic downturn, leaving behind many abandoned buildings.  

2. Investors Still Need to Diversify

As with any investment, the rule to not ‘put all your eggs in one basket still holds here. The risks inherent with investing in a REIT (real estate investment trust) apply to investments with Yield Crowd as well. 

3. There are Risks with Stellar Blockchain 

Investors must understand blockchain technology before entering into these types of investments. There may be risks with trading with cryptocurrencies. Investors should educate themselves on blockchain technology and prepare for scenarios in which their investment could be affected. 

Conclusion

Yield Crowd isn’t a scheme. Investing in Yield Crowd is a great way to diversify a portfolio with real estate investments, piloted by a co-founder who has performed millions of dollars worth of real estate transactions and whose success has the support of the Forbes Finance Council community. 

For investors residing outside of the United States, Yield Crowd’s diversified real estate fund with a target 8.75% return is a worthwhile investment.