Asset backed investments, accredited investors
Terry, I’m interested in your opinion on asset backed investments available to accredited investors via companies such as Yieldstreet.com, Peerstreet.com and Fundrise.com. How much of one’s net worth to invest into one of these investments? How to do one’s due diligence? Thanks
Terry Says
Personally, I wouldn’t touch them — but I’m pretty conservative. I think you can do fine with publicly traded investments, ETFs, mutual funds, etc. The brokers and promoters get rich selling these deals, which means you’re already overpaying.
Plus these deals are typically not “liquid” –meaning your cash is tied up for a long period of time for the hoped-for returns. AND, they get to “value” them based on subjective criteria, where a publicly traded stock is valued in the trading marketplace.
I know it sounds “sophisticated” to own this kind of stuff — and the sellers are counting on the fact that you want to impress your friends by being in a “deal.” My advice: Deal yourself OUT!
