Yieldstreet customer Justin Klish invested $400,000 in real estate projects through the platform, facing total losses as properties declared default, wiping out his funds. The troubled projects span various locations and asset types, impacting investors who face deep or total losses on their investments.

Yieldstreet, founded in 2015, aimed to democratize access to alternative assets beyond stocks and bonds. The company gathered funds from retail investors like Klish, offering deals previously available to Wall Street firms. However, several real estate deals soured, resulting in defaults and significant losses for investors who face challenges in recovering their capital.

Yieldstreet’s struggles in real estate investments have led to widespread defaults and struggles for investors. While the company claimed positive returns on matured investments, distressed projects resulted in deep losses. Customers accuse Yieldstreet of downplaying risks and providing misleading information, raising concerns about the platform’s transparency and performance.

Customers like Louis Litz and Mark Underhill are facing substantial losses on their investments through Yieldstreet’s real estate deals. The company’s pivot away from bespoke investments to a model offering funds from established Wall Street giants reflects a shift in strategy to mitigate risks and improve offerings for customers. Yieldstreet aims to evolve into a distribution platform with more diversified investment options.

Under its new CEO, Yieldstreet is shifting its focus to offering funds from external asset managers like Goldman Sachs and the Carlyle Group. This strategic change aims to provide customers with a broader range of investment options and reduce risks associated with bespoke investments. The move comes amidst challenges faced by customers who invested in troubled real estate projects through the platform.

Read more at CNBC: Yieldstreet real estate bets leave customers with massive losses