How My Father-In-Law’s Question Inspired YieldStreet

My father-in-law lives in India. Every time we spoke on the phone in the US, he had the same question: “Where are you investing your money?” And every time, like a broken record, I had the same answer: “In the stock market, Dad.” He wasn’t crazy about that answer, and frankly, neither was I. In India, interest rates are much higher than they have been for the last decade in the US. The government implemented many initiatives that enable Indian investor to earn 4-10% yield with relatively minimal risk. My father-in-law was shocked that accredited investors in the US had so few alternatives to our volatile stock market. After all, in almost every field, the US has served as the ideal for best practices in almost every field. Why were our investment options so limited? Maybe his daughter should have married a nice Indian boy who was going to stay in India. As I was searching for better investment options, I saw that a lot of my friends were in the same boat. We were successful young professionals, over-invested in the stock market. We had diligently put our hard-earned dollars into 401(K)s and had built decent retail stock portfolios full of index funds and ETFs. Our kids’ college funds were in 529s, also invested in stocks. And we were all terrified of the next bear market. I began searching for alternatives. Other investment options, such as commodities, options, futures, and even bonds, which were too sophisticated to truly understand and to use with confidence. I was working for Yodle, an online marketing platform for small businesses that I had co-founded. Some of our clients owned strong cash-flow businesses, such as hotels, or fast food chains, like Subway and Dunkin Donuts. I was fascinated by these and eager to invest, but I kept getting locked out of great deals either by professional investment funds or by high-net-worth investors who could drop six or seven figures at a shot. It was frustrating, to say the least. One day, I read a Foundation Capital paper about how Lending Club and other crowdfunders were transforming the online lending ecosystem. It inspired me to learn if I could somehow tap the power of the crowd to solve my investor’s dilemma–and finally have a different answer for my father-in-law. Soon after, I crossed paths with specialty finance experts Dennis Shields and Michael Weisz. It was from them that I learned about specialty finance loans in lawsuit funding, real estate and receivables finance. Dennis and Michael, meanwhile, were trying to figure out how to make borrowing less expensive for their clients. The more we talked, the more we realized that together we could meet huge needs for both accredited investors like myself, who were searching for yield, and worthy borrowers with strong businesses, searching for affordable capital. We believed that if we could build the right online marketplace to bring these parties together, we would forever change how people think about financial planning and wealth creation. YieldStreet was born out of our passion for investing, and our need for a more transparent and accessible investment landscape. Now when my father-in-law invariably asks me, “So, where are you investing your money?” I have a new answer for him. I tell him about the latest deals we’re offering on YieldStreet and he gets almost as excited about them as I am. I think he’s starting to warm up to me.
How helpful is this content?

Share this article:

Sign up for Yieldstreet in 3 easy steps

Sign up with your email address

Securely verify your identity and link a bank account

Verify your accreditation (if applicable) to access all of Yieldstreet’s offerings.

The Yield

Our weekly podcast providing ideas about how to make money work for you and bring you closer to your dreams.

Since inception, over $1.8B has been invested on Yieldstreet

Join today for free to access alternative investment opportunities.

1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

3 "Annual interest" or "Annualized Return" represents an annual target rate of interest or annualized target return and "term" represents the estimated term of the investment. Such target interest or target returns and estimated term are projections of the interest or returns and or term and may ultimately not be achieved. Actual interest or returns and term may be materially different from such projections. This targeted interest or returns and estimated term are based on the underlying investments held by the applicable.

4 Reflects the initial quarterly distribution declared by the board of directors on February 6, 2020, which will be payable to stockholders of record as of June 10, 2020, and the initial offering price of $10 per share.

5 The Fund will cease investing and seek to liquidate the Fund's remaining portfolio no later than 48 months after the Fund's initial closing. It may take up to twelve months thereafter to fully monetize any remaining illiquid investments in the Fund's portfolio.

6 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.

7 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including Sept 6th, 2021, after deduction of management fees and all other expenses charged to investments.

8 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Prism Fund before investing. The prospectus for the Yieldstreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.com. The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.

300 Park Avenue 15th Floor, New York, NY 10022

844-943-5378

No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.

Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.

Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.

Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.

Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments.

Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.

Banking services are provided by Evolve Bank & Trust, Member FDIC.

Investment advisory services are provided by YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission.

Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.

Read full disclosure
Copyright © 2021 YieldStreet, Inc.