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.

High volatility

Highly volatile floating market value.

No contractual obligation on value increase over time.

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.

High

Scheduled 9% interest which increases yearly.

3% face value appreciation growth.

2022 return (annualized) 12.38%

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)

High

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

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.

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

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.

Passive

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

100% passive.

Passive

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

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.

Mid minimum

Minimum investment $25K.

No minimum

No minimum investment

High minimum

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

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.

High liquidity

Large amounts of volume traded daily.

Low liquidity

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

No/low fees

No fees to buy or sell YIELD bonds 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.

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.

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.

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.

Diverse

Company usually has multiple income streams.

Company not typically affected by losing and gaining individual accounts.

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.

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.

Ledger controls, ability to clawback bonds in case of stolen bonds.

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

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.

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.