How does YIELD compare to common investment types?

Our goal is to offer a stable fixed-rate, non-volatile, medium-liquidity, high interest investment1. Compare to other common investment types below.

Volatility

Highly volatile investments force long-term holding patterns with years in the negative.

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Yield Crowd "YIELD" Tokens

Low Volatility

Contractually obligated to pay 9%+ annual interest rate.

Contractually obligated to increase face value over time.

Designed to generate returns, despite general market volatility, and potential underlying real estate volatility.

Publicly Traded Top 500 US Stocks

High volatility

Highly volatile floating market value.

No contractual obligation on value increase over time.

Private Real Estate Ownership

Low/variable volatility

Most years should be positive due to inflation and rent income.

Not contractually obligated to increase in value.

Can lose value if not properly underwritten and managed.

Returns

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Yield Crowd "YIELD" Tokens

High

Scheduled 9% interest which increases yearly.

3% face value appreciation growth.

2022 return (annualized) 12.38%

Publicly Traded Top 500 US Stocks

Medium-low

Very low or no dividend payments

Uncontrollable market conditions can drive negative returns up to 10+ years consecutively.

Average returns over 20 year period 6.06% (S&P 500, 20 Years ⁠— QAIB Report)

Private Real Estate Ownership

High

Market deals can see between 6-15% leveraged returns, higher with experienced investors

Risks

Investing always entails some level of risk. The level of risk should be proportional to returns.

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Yield Crowd "YIELD" Tokens

Low-mid risk2

YIELD is backed by a corporate bond. The bond issuer’s obligation to repay principal generally makes bonds less risky than stocks.

Unlike stockholders, bondholders know how much money they expect to receive.

Entire underlying diversified portfolio fails to perform - company sells real assets in an attempt to recover the majority of investor funds.

Crypto ledger hacks. Minimal risk, due to policy of storing invested funds in FDIC insured banks rather than on-chain.

Unfavorable government regulatory landscape updates.

Publicly Traded Top 500 US Stocks

Risky

Stock market value crash.

Company goes bankrupt - Company owns no real assets, common shareholders are left with shares that have no value.

Brokerage account is hacked.

Single point of failure stock exchange and predatory government jurisdictional actions or sanctions

Private Real Estate Ownership

Some risk

Lack of diversity.

Lack of proper insurance leading to building fires, tenant lawsuits, severe weather damage, mold damage, theft, vandalism, and on-site murders, non paying tenants, government ordinance and takings, tenant destruction of property, large legal bills.

Lack of sufficient operating funds, causing foreclosure and loss of equity.

Credit score decline, leading to foreclosure when loan balloon payment is due.

Bad underwriting, negative performing returns from lack of experience.

Excessive operating and legal costs - no economies of scale, one to a few units versus hundreds of units.

Management

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Yield Crowd "YIELD" Tokens

Passive

Managed by a team of veteran real estate investors, lawyers, property managers, brokerage firms, and maintenance personnel.

100% passive.

Publicly Traded Top 500 US Stocks

Passive

Managed by a veteran team of executives, lawyers, and employees.

Private Real Estate Ownership

Not passive

Typically managed by an inexperienced investor and a small property management company with insufficient insurance policies, staffing, and legal teams

Significant amount of time, effort, and management required by investor/owner.

Minimum Investment

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Yield Crowd "YIELD" Tokens

Mid minimum

Minimum investment $25K.

Publicly Traded Top 500 US Stocks

No minimum

No minimum investment

Private Real Estate Ownership

High minimum

Typically between $250K-$500k down payment, and a mortgage on the investor's personal credit.

Liquidity

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Yield Crowd "YIELD" Tokens

Medium liquidity

More liquid than traditional real estate.

Less liquid than highly traded public stocks.

Can instantly transact with other buyers if located.

Up to 5% annual buy-back policy.

Publicly Traded Top 500 US Stocks

High liquidity

Large amounts of volume traded daily.

Private Real Estate Ownership

Low liquidity

Can take months or years to go through the sales listing process.

Fees

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Yield Crowd "YIELD" Tokens

No/low fees

No fees to buy or sell YIELD tokens on the Stellar DEX.

Zero fees account funding via XLM digital currency.

Fiat (wire) bank onboarding fees may apply, check with your bank for wire fees.

Credit card fees of a minimum $5 or up to 3.9% do apply for Visa and Mastercard transactions.

Publicly Traded Top 500 US Stocks

Low fees

The standard commission for full-service brokers today are between 1% to 2% of a client's managed assets.

Bank and credit card processing fees may apply - differs between brokerages and exchanges.

Private Real Estate Ownership

High fees

Typical 4% commission on buy and sale of the transaction (8% round trip).

Typical 2% legal, 3rd party, and loan closing fees.

Ongoing bank fees.

Ongoing management fees.

Diversity

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Yield Crowd "YIELD" Tokens

Diverse

A diverse set of underlying assets, each with multiple income streams, providing for hundreds of streams of income.

Income not affected by tenants moving in and out.

Publicly Traded Top 500 US Stocks

Diverse

Company usually has multiple income streams.

Company not typically affected by losing and gaining individual accounts.

Private Real Estate Ownership

Typically not diverse

Typically not diverse with around 1-4 income streams.

Income can go negative when losing tenants.

Income can go negative when unplanned major repairs arise.

Risk Management

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Yield Crowd "YIELD" Tokens

Highly managed

Diversification across multiple asset classes, states, and income streams.

Property deal due diligence and full underwriting by teams of investment professionals, bankers, and institutional brokers.

Properties insured by multi-million dollar insurance policies.

Multi-million dollar liability policies to protect against items such as employee negligence, accidents, and tenant lawsuits.

Blockchain controls, ability to clawback tokens in case of a blockchain hack.

Multi-node blockchain recording of assets, for increased cross-border resilience from aggressive government regimes and other predatory entities.

Publicly Traded Top 500 US Stocks

Highly managed

Likely has a diverse customer base and multiple income streams.

Professional management team typically should analyze risks and find opportunities, and adjust the course of the company.

Typically carries multi-million dollar insurance policies.

Multi-million dollar liability policies to protect against employee negligence, accidents, and lawsuits.

Likely stock broker has insurance protection mechanisms in case of theft of brokerage account held assets.

Private Real Estate Ownership

Unmanaged

Owner may carry a small, limited insurance policy, which may protect in some circumstances.

Owner may be able to hands-on fix problems themselves, such as leaking pipes, electric arcs, and dangerous property structural issues.