The Skeleton Keys to Alternative Investments (Transmission #328)
The prospect of democratizing access to real estate investments—once the exclusive domain of wealthy individuals, accredited investors, and family offices—has fueled a wave of fractional investment platforms. But challenges abound. Reaching everyday investors requires expensive marketing, and building trust remains a major challenge to converting interest into actual invested dollars.
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Compliance with the SEC is neither cheap nor easy. And then there’s the perception problem. Many consumers assume these platforms only offer the scraps—leftovers from the better deals well-connected investors secure. Those savvy investors who are on the right email lists and directly fund top properties in days or weeks.
Yieldstreet’s acquisition of Cadre offers a glimmer of hope. But so far the hype hasn’t translated into breakout success. Several high-profile platforms—including Here, PeerStreet, and Landa—have already gone to the grave. Even with $27M in venture and a deal with the NASDAQ to list its buildings, LEX Markets couldn’t weather the storm.