Yieldcrowd.com Review

Based on looking at the website, Yieldcrowd.com presents itself as a platform for investing in institutional, liquid real estate funds with a promise of fixed income and high returns.

However, a deeper dive reveals significant concerns from an ethical perspective, especially regarding principles like interest-based investments and the speculative nature inherent in some of its offerings.

The model of earning fixed APR and bond appreciation falls directly under the category of Riba interest, which is strictly prohibited in Islamic finance.

This makes the entire investment model offered by Yieldcrowd.com problematic for individuals seeking ethical financial avenues.

Overall Review Summary:

Ethical Compliance Islamic Finance: Not compliant due to interest-based returns Riba.
Investment Model: Offers “YIELD bonds” with fixed APR and bond appreciation.
Target Audience: Accredited U.S. investors and international non-U.S. citizens.
Minimum Investment: $25,000.
Liquidity: Claims P2P trading on a decentralized exchange, but liquidity is not guaranteed.
Transparency: Provides some project details and team experience, but the underlying tokenized asset structure on Stellar might be complex for average investors.
Risks: Clearly states “Returns are not guaranteed. Investing could result in total loss.” This is a critical disclaimer for any investment, but the inherent Riba element makes the entire proposition unsuitable.

Yieldcrowd.com positions itself as a way to diversify portfolios and generate income through real estate investments.

They highlight features like two-factor authentication, property insurance, and an investment model based on “YIELD bonds” which promise 9% APR in USDC and 3% annual appreciation.

While the idea of real estate investment can be beneficial, the mechanism through which Yieldcrowd.com operates, specifically the fixed interest payments and bond appreciation, directly contravenes Islamic financial principles.

For any Muslim seeking to build wealth ethically, these types of interest-bearing instruments are to be avoided.

The emphasis on “fixed income” and “guaranteed returns” even with disclaimers about non-guarantee points to a structure built on Riba, which carries severe consequences in Islam.

It’s crucial to understand that even if the underlying assets are real estate, the financial structure around them can render the investment impermissible.

Best Alternatives for Ethical Wealth Building Non-Interest Based:

Halal Real Estate Investment Funds: These funds operate on Sharia-compliant principles, typically through equity partnerships, profit-sharing, or lease-to-own models, avoiding interest.
Ethical Investment Platforms: Look for platforms that specialize in Sharia-compliant investments, focusing on industries that are ethically sound and avoiding those involved in forbidden activities alcohol, gambling, conventional finance, etc.. Examples include Wahed Invest or Amana Mutual Funds.
Direct Equity Investment in Businesses: Investing directly in the equity of a company like purchasing shares on a stock exchange can be permissible if the company’s core business and financial structure are Sharia-compliant. This involves sharing in the profit and loss, not receiving fixed interest.
Commodity Murabaha: A Sharia-compliant financing structure where an asset is purchased and then resold to the customer at a profit, often used for short-term financing without involving interest.
Sukuk Islamic Bonds: These are Sharia-compliant financial certificates, similar to conventional bonds, but representing ownership in tangible assets or a business venture, with returns based on asset performance or profit-sharing, not interest.
Crowdfunding for Sharia-Compliant Businesses: Platforms that facilitate direct investment into ethical businesses, where investors become equity partners and share in the legitimate profits and losses of the venture.
Physical Real Estate Direct Ownership: Purchasing physical properties directly, either for rental income or appreciation, is generally considered highly permissible as it involves direct ownership of a tangible asset. Ensure any financing used is Sharia-compliant e.g., through Islamic mortgages.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Table of Contents

Yieldcrowd.com Review: A Closer Look at its Investment Model

Yieldcrowd.com, at first glance, presents an enticing proposition for real estate investment. They aim to provide access to “institutional, liquid real estate funds” with promises of “fixed income” and substantial returns. However, the core mechanism through which these returns are generated, specifically the “YIELD bonds” paying a “fixed APR” and bond appreciation, immediately raises red flags from an Islamic finance perspective. The concept of Riba interest is central to this concern. Riba, whether in the form of usury or simply a fixed predetermined return on a loan or debt instrument, is explicitly prohibited in Islam. This prohibition is not merely a formality but a fundamental principle designed to ensure economic justice, discourage excessive risk-taking, and promote real economic activity over speculative financial gains.

Yieldcrowd.com’s Investment Model and Sharia Compliance

The website describes its investment vehicle as “YIELD bonds” which pay out “9% APR in USDc” weekly, alongside an annual appreciation of the bonds by 3%. This structure is the primary reason why Yieldcrowd.com’s offering is problematic from an Islamic standpoint.

Fixed APR Annual Percentage Rate: This is a direct form of interest. Whether it’s paid weekly or annually, a predetermined fixed return on an invested principal, without directly tying it to the actual profit or loss of a tangible asset or business venture, constitutes Riba. Islamic finance requires returns to be linked to risk and the performance of an underlying asset or enterprise, where investors share in both profits and losses.
Bond Appreciation: While real estate itself can appreciate, the “bond appreciation” described here seems to be part of a structured financial instrument rather than direct equity ownership of a property. If this appreciation is pre-determined or guaranteed as part of the bond’s terms, it further contributes to the Riba concern, as it fixes a return on a debt-like instrument.
Tokenized Assets: The mention of properties being “tokenized* as YIELD on Stellar” implies a layer of financialization that distances the investor from direct ownership of the physical asset. While tokenization itself is a technology, how it’s used to structure returns is what determines permissibility. In this case, it appears to facilitate an interest-bearing bond rather than direct equity.

Therefore, for anyone adhering to Islamic financial principles, Yieldcrowd.com’s investment model, as described on its homepage, is not permissible due to its reliance on interest Riba.

Yieldcrowd.com’s Approach to Real Estate Investment

Yieldcrowd.com positions itself as a modern solution for real estate investment, emphasizing ease of access and diversification.

They highlight several aspects of their approach, including leveraging technology and focusing on specific types of properties.

Diversifying Portfolios with Real Estate

The platform encourages investors to “Diversify your portfolio.

Invest in professionally managed, liquid real estate to generate income and grow value over time.” The idea of diversification is sound, and real estate, in general, has historically been a significant wealth builder.

Historical Data: The website cites that “Estimates show that 90% of millionaires over the last two centuries have achieved their wealth in part due to real estate investments.” This statistic, while broad, underscores the long-term potential of real estate as an asset class.
Professional Management: They claim “professionally managed” properties, which theoretically reduces the burden on individual investors and ensures proper upkeep and operation of the assets.
Income and Value Growth: The dual promise of “generate income and grow value” is typical of real estate investment, where rental income provides cash flow and property appreciation builds equity.

The Stellar Distributed Ledger and Tokenization

A key technological component highlighted by Yieldcrowd.com is its use of the Stellar Distributed Ledger.

This is pitched as a way to enhance liquidity and transparency.

Tokenization: “Yield Crowd’s portfolio is tokenized* as YIELD on Stellar.” Tokenization means creating a digital representation of a real-world asset on a blockchain. This can facilitate easier transfer and fractional ownership.
Secondary Market Liquidity: They state that Stellar “makes it possible to tokenize real estate assets for secondary market liquidity, international access, and transparency.” This suggests investors might be able to buy and sell their YIELD tokens to other investors on a decentralized exchange.
Potential Benefits: The website lists “Benefits Secure Frequent Payouts P2P Trading Zero Fees Transparent.” While these are appealing, the underlying structure of the token as an interest-bearing bond remains the primary ethical concern.

Focus on USA Real Estate

The platform specifically targets investments in the United States, citing economic stability and a global finance hub. Bydrdiane.com Review

Economic Stability: “Investing in the USA The world’s largest GDP, economic stability, and a global finance hub.” This suggests a perceived lower risk environment compared to some emerging markets.
Building Financial Freedom: The goal presented is to help investors “start building your financial freedom today” through US real estate.

The Problem with Fixed Income and Interest-Bearing Investments

The central issue with Yieldcrowd.com from an Islamic finance perspective is its emphasis on “fixed income” and “fixed-rate” returns, which inherently involve Riba interest. This is a critical distinction that prospective investors must understand.

Riba: The Core Ethical Conflict

Riba is a cornerstone prohibition in Islamic finance, and it’s not merely about excessive interest rates.

It encompasses any predetermined, risk-free return on capital that does not share in the actual profit and loss of a venture.

Quranic Prohibition: The prohibition of Riba is explicitly mentioned in the Quran e.g., Al-Baqarah 2:275, 2:278-279, which states that those who deal in Riba are in a state of war with Allah and His Messenger.
Ethical Rationale: The prohibition of Riba is rooted in principles of justice, fairness, and risk-sharing. It aims to prevent exploitation, encourage real economic activity, and promote equitable distribution of wealth. In an interest-based system, capital earns money merely by existing, without direct participation in productive effort or shared risk. This can lead to wealth concentration, inflation, and economic instability.
Contrast with Halal Investments: In contrast, permissible Halal investments involve genuine risk-sharing. For example, in a Mudarabah profit-sharing or Musharakah joint venture arrangement, investors share in both the profits and losses of an enterprise. Returns are not fixed but fluctuate based on the actual performance of the investment.

Yieldcrowd.com’s “Fixed Rate” Dilemma

Yieldcrowd.com explicitly states: “YIELD bonds are obligated to pay interest and appreciation at a fixed rate – for a less volatile investment.” This statement, while designed to attract risk-averse investors, is precisely what makes the investment problematic under Sharia law.

Guaranteed Payments: The term “obligated to pay interest… at a fixed rate” clearly indicates a debt instrument with a predetermined return, which is the definition of Riba.
Risk-Free Illusion: While the platform mentions “Returns are not guaranteed. Investing could result in total loss” in its disclaimer, the marketing language emphasizes “fixed income” and “less volatile investment,” creating an illusion of risk-free returns on the interest component, which is contradictory to Islamic principles of shared risk.
Impact on Society: An economy built on Riba tends to favor those who have capital, allowing them to accumulate wealth without engaging in productive labor or sharing in the inherent risks of business. This can lead to significant economic disparities and an unhealthy financial system.

Transparency and Disclosures: What Yieldcrowd.com Shows and Hides

Transparency is a critical factor in evaluating any investment platform.

Yieldcrowd.com provides some information about its operations, team, and projects, but there are areas where more clarity would be beneficial, particularly regarding the specifics of the tokenized assets and the true nature of their liquidity.

Information Provided

Yieldcrowd.com offers several pages and sections that aim to inform potential investors:

About Us & Our Story: These sections provide background on the company’s mission and history.
The Team: A dedicated page introducing the individuals behind Yieldcrowd.com, including their experience in real estate and software development. They mention “The YIELD bond sponsor Olson Capital Investments has been investing in real estate for over a decade – since 2012.”
Sponsor Properties: Details on recent fund acquisitions, such as “The Prescottonian” hotel and “Hacienda Heights” apartments, including CoC Yield, Cost, and other metrics. This provides some insight into the types of assets they are investing in.
Frequent Questions FAQ: Addresses common queries, including who can invest accredited U.S. investors and non-U.S. citizens, the team’s experience, and reinvestment options.
Investment Comparisons: A table comparing Yield Crowd Bonds to other asset classes like Publicly Traded Stocks, CDs, REITs, and Private Commercial REI, highlighting their target dividend yield, total returns, and liquidity.

Areas for Further Scrutiny

While the provided information is a start, certain aspects warrant deeper scrutiny, especially for an ethical review.

Accredited Investor Requirement: The platform is “restricted to persons who are accredited investors in the U.S. pursuant to Regulation D or not U.S. citizens and who are located outside of the U.S., pursuant to Regulation S.” This implies a level of complexity and risk that necessitates a sophisticated understanding of financial markets, potentially limiting access for general investors. An “Accredited U.S. Investor” is defined as earning “$200,000 or more per year, or joint $300,000, or has a Net Worth not including primary residence of at least $1,000,000 U.S. dollars.” This immediately signals that it’s not for the average person.
“Liquidity Not Guaranteed”: Despite promoting “LIQUIDITY Trade p2p with other investors,” a crucial disclaimer states, “Liquidity not guaranteed.” This is a significant point of concern. The ability to easily sell an investment is vital, and a lack of guaranteed liquidity means investors might be stuck with their tokens for an extended period if there’s no buyer on the secondary market.
Full Disclosure on Tokenization: While they state “A token is an asset such as a stock, bond or currency traded on a distributed ledger,” the exact legal and ownership structure of the YIELD token and its relation to the underlying physical properties could be more transparent. Is it a direct representation of equity, or a debt instrument secured by the property? The former would be more permissible than the latter, but the fixed interest makes it lean towards the latter.
Regulatory Oversight: While they mention SEC definitions for accredited investors, clear information on the specific regulatory framework under which the tokenized bonds operate would enhance trust.

Disadvantages of Yieldcrowd.com for Ethical Investors

For investors prioritizing ethical and Sharia-compliant financial practices, Yieldcrowd.com presents several significant disadvantages, primarily stemming from its investment model and the inherent risks associated with its structure.

The Inherent Riba Interest Problem

As discussed, the fundamental issue is the interest-based return mechanism. Icertis.com Review

Spiritual Impermissibility: For Muslim investors, engaging in Riba is considered a major sin. It’s not just a financial transaction but carries significant spiritual implications, impacting one’s relationship with the Divine.
No Real Participation in Profit/Loss: The fixed interest structure means investors do not truly share in the enterprise’s profit and loss. This violates the core Islamic principle of risk-sharing Ghurm bil Ghanm, where profit is justified by bearing risk.
Ethical Contradiction: Even if the underlying real estate itself is ethical, the financial wrapping the fixed interest bond makes the entire investment unethical. It’s akin to buying a permissible product through an impermissible financing method.

Non-Guaranteed Liquidity Despite Claims

While the platform boasts “liquidity” through P2P trading, the disclaimer “Liquidity not guaranteed” is a critical drawback.

Investor Lock-in Risk: If a robust secondary market does not materialize, investors might find it difficult to sell their YIELD bonds when they need to. This means their capital could be tied up for an indefinite period, despite the marketing emphasis on “liquid real estate fund.”
Market Volatility: The value of the YIELD bonds on the P2P market could fluctuate, potentially leading to losses if an investor needs to sell during a downturn, even if the underlying property remains stable.

High Minimum Investment and Limited Accessibility

The $25,000 minimum investment makes Yieldcrowd.com inaccessible to a large segment of potential investors.

Exclusion of Smaller Investors: This high threshold means only wealthier individuals or those with significant capital can participate, which goes against the spirit of democratizing investment.
Accredited Investor Requirement: The additional requirement for U.S. investors to be “accredited” further restricts access, ensuring that only those with substantial income or net worth can join. This creates an exclusive environment.

Potential for Deceptive Marketing of “Fixed Returns”

While disclaimers are present, the pervasive use of “fixed income,” “fixed rate,” and “guaranteed” language even if followed by “target” or “not guaranteed” can be misleading.

Investor Misconception: Less sophisticated investors might overlook the disclaimers and focus solely on the attractive “fixed returns,” believing their capital is truly secure and will yield a guaranteed profit.
Emphasis on Passive Income: The promise of a “100% passive income stream” appealing to retirees further solidifies the perception of a low-effort, high-certainty return, which is often a red flag in ethical investing.

Ethical Alternatives for Real Estate Investment

Given the concerns with Yieldcrowd.com’s interest-based model, it’s crucial to explore ethical and Sharia-compliant avenues for real estate investment.

These alternatives prioritize genuine risk-sharing, tangible asset ownership, and avoidance of Riba.

Direct Ownership of Physical Real Estate

This is arguably the most straightforward and permissible method of real estate investment.

Residential Properties: Investing in residential homes or apartments for rental income. This involves direct ownership and management or hiring a manager, where income is derived from rent, and appreciation is based on market value. Residential Real Estate Investment
Commercial Properties: Purchasing office buildings, retail spaces, or industrial properties for lease. Similar to residential, the income is from rent, and appreciation is market-driven. Commercial Real Estate Investment
Agricultural Land: Investing in land for farming or agricultural purposes, where returns come from crop yields or livestock. Agricultural Land Investment

Sharia-Compliant Real Estate Funds REITs & Private Funds

These funds are structured to comply with Islamic principles, avoiding interest and investing in permissible real estate assets.

Islamic REITs Real Estate Investment Trusts: Unlike conventional REITs that might deal in interest-bearing debt, Islamic REITs invest directly in income-generating properties. Their revenue is derived from rents, and profits are distributed to shareholders. They typically undergo a Sharia screening process for assets and financial structures. Islamic REITs
Private Sharia-Compliant Real Estate Funds: These are often structured as Musharakah joint venture or Mudarabah profit-sharing partnerships, where investors contribute capital to acquire and manage real estate assets. Returns are based on the actual performance of the properties, sharing both profits and losses. These are less liquid than publicly traded REITs but offer direct exposure to the underlying assets. Sharia Compliant Real Estate Funds

Sukuk Islamic Bonds for Real Estate Projects

While Yieldcrowd.com offers “bonds” that are problematic, Sukuk are Sharia-compliant alternatives.

Asset-Backed vs. Asset-Based: True Sukuk represent an undivided beneficial ownership interest in tangible assets or a specific project. Their returns are tied to the performance of these assets, not a fixed interest rate on debt. There’s a distinction between asset-backed true ownership and asset-based debt secured by assets, which can still be problematic if fixed returns are involved.
Types of Sukuk: Common types include Ijarah Sukuk leasing, Musharakah Sukuk joint venture, and Mudarabah Sukuk profit-sharing. These can be issued by governments or corporations to finance real estate developments or acquisitions. Sukuk Investment

Ethical Crowdfunding Platforms for Real Estate

Some crowdfunding platforms focus specifically on Sharia-compliant real estate projects. Geturebook.com Review

Equity Crowdfunding: Investors contribute capital in exchange for equity ownership stake in specific properties or development projects. Returns are based on rental income and property appreciation, and investors share in losses if the project underperforms. Ethical Real Estate Crowdfunding
Profit-Sharing Models: These platforms facilitate investments based on profit-sharing principles, avoiding fixed interest. Due diligence is crucial to ensure the underlying contracts are truly Sharia-compliant.

Yieldcrowd.com’s Pricing and Minimum Investment

Yieldcrowd.com sets a clear entry barrier with its minimum investment requirement and targets a specific type of investor.

Understanding these figures is crucial for anyone considering the platform, especially in light of the ethical concerns.

Minimum Investment: $25,000

The most prominent financial figure on Yieldcrowd.com’s homepage is the “$25K Minimum Investment.”

Exclusivity: This minimum immediately positions Yieldcrowd.com as a platform for more affluent investors, rather than those seeking to start with smaller amounts. It’s a significant sum for many individuals looking to dip their toes into real estate.
Comparison to Other Platforms: While some traditional private equity real estate funds might have even higher minimums, many modern crowdfunding platforms or publicly traded REITs allow entry with much smaller amounts, sometimes as low as $100 or $500. This $25,000 threshold suggests a more institutional or sophisticated investor target.

Target Returns and Fees Implicit

While there isn’t a direct “pricing” section for fees, the website focuses on the target returns.

Target APR: The platform advertises “Earn 13.38% Fixed Income Investment Institutional, liquid real estate fund — up to 23% return compounded.” They clarify, “Target APR includes projected bond appreciation and CoC yield average over 10 year hold.”
9% APR in USDc + 3% Appreciation: They detail, “Each YIELD bond you hold pays out 9% APR in USDc while bonds appreciate by 3% annually.” This is a breakdown of how the 13.38% target return is composed.
“Zero Fees” on P2P Trading: The “Benefits” section on the Stellar Distributed Ledger mentions “Zero Fees” for P2P trading. This implies that while buying/selling on their internal secondary market might be commission-free, there could be other fees or spreads built into the initial investment or annual management that are not explicitly detailed on the homepage. Without a clear fee schedule, it’s hard to ascertain the total cost of investment.
No Explicit Management Fees: Unlike traditional funds that clearly state annual management fees e.g., 1-2% of AUM or performance fees e.g., 20% of profits above a hurdle rate, Yieldcrowd.com doesn’t explicitly list these for the “YIELD bonds” themselves. The returns being “fixed” might imply that any such fees are already baked into the net return calculation, or they are structured differently as part of the bond issuance.

From an ethical perspective, the “pricing” model or lack thereof for explicit fees combined with the high minimum further reinforces the notion that this is a specialized financial product.

More importantly, regardless of the fees, the fixed interest component renders the entire proposition impermissible for ethical investors.

How to Avoid Interest-Based Investments and Focus on Halal Options

For an investor committed to ethical finance, avoiding interest-based investments like those offered by Yieldcrowd.com is paramount.

This requires understanding what constitutes Riba and actively seeking out Sharia-compliant alternatives.

Understanding and Avoiding Riba

The first step is a clear understanding of Riba in all its forms.

Fixed Returns on Debt: Any loan or debt instrument that carries a predetermined, fixed return on the principal is Riba. This includes conventional bank interest on savings accounts, bonds, and certain types of fixed-income funds. Yieldcrowd.com’s “YIELD bonds” with a “fixed APR” fall squarely into this category.
Guaranteed Returns Without Risk-Sharing: If an investment promises a guaranteed return without the investor sharing in the potential losses of the underlying venture, it is likely Riba. Islamic finance emphasizes that profit Ghanm is only legitimate when accompanied by risk Ghurm.
Delayed Payments and Late Fees: Penalties for late payments that accumulate over time beyond actual administrative costs can also be considered Riba, as they constitute an increase in debt due to time.

Steps to Ensure Investments are Halal

Actively seeking out and verifying the Sharia compliance of any investment is crucial. Bit-gains.com Review

Consult Sharia Scholars/Advisors: For complex financial products, consult qualified Islamic finance scholars or institutions with Sharia advisory boards. Many ethical investment platforms have their compliance certified.
Verify the Underlying Assets: Understand what the investment is truly based on. Is it equity in a tangible asset, or a debt instrument? For real estate, ensure it’s not based on conventional mortgage financing that involves interest.
Examine the Return Mechanism: How are profits generated and distributed? Are they fixed and predetermined, or do they fluctuate based on the actual performance of the underlying asset or business?
Avoid Prohibited Industries: Ensure the investment does not involve industries deemed impermissible e.g., alcohol, tobacco, gambling, conventional banking/insurance, pornography, weapons manufacturing.
Look for Risk-Sharing Models: Prioritize investments that operate on profit-and-loss sharing principles Mudarabah, Musharakah or genuine asset-backed structures Ijarah, Sukuk.

Practical Steps for Ethical Real Estate Investment

Save and Buy Cash: The purest form of halal real estate investment is to save up and purchase properties outright with cash, avoiding any debt.
Islamic Home Financing: If financing is needed, seek out reputable Islamic financial institutions that offer Sharia-compliant home financing solutions, such as Murabaha cost-plus financing, Musharakah Mutanaqisah diminishing partnership, or Ijarah leasing. These models avoid conventional interest.
Invest in Sharia-Compliant Funds: As highlighted in the alternatives section, research and invest in dedicated Islamic real estate funds or Sharia-compliant REITs that have undergone rigorous Sharia screening.
Direct Equity Crowdfunding: Explore crowdfunding platforms that facilitate direct equity investment in properties, ensuring their contracts and revenue models are fully Sharia-compliant.
Thorough Due Diligence: Even with ethical options, always perform thorough due diligence. Understand the terms, risks, and the business model before committing capital.

FAQ

What is Yieldcrowd.com?

Yieldcrowd.com is an online platform that offers investment opportunities in institutional, liquid real estate funds through “YIELD bonds,” promising fixed income and potential appreciation.

Is Yieldcrowd.com Sharia-compliant?

No, Yieldcrowd.com is not Sharia-compliant due to its investment model that involves “fixed APR” and bond appreciation, which constitutes Riba interest in Islamic finance.

What is Riba in Islamic finance?

Riba refers to any predetermined, fixed return on a loan or debt instrument, and it is strictly prohibited in Islam. It encompasses both usury and simple interest.

What are “YIELD bonds” on Yieldcrowd.com?

“YIELD bonds” are the investment instruments offered by Yieldcrowd.com, through which investors reportedly earn 9% APR in USDc weekly and 3% annual appreciation, representing an interest-based return.

What is the minimum investment for Yieldcrowd.com?

The minimum investment for Yieldcrowd.com is $25,000.

Who can invest on Yieldcrowd.com?

Yieldcrowd.com is accessible to accredited U.S.

Investors individuals earning over $200,000/year or with a net worth over $1 million, excluding primary residence and non-U.S. citizens located outside the U.S.

Is liquidity guaranteed on Yieldcrowd.com?

No, while Yieldcrowd.com mentions P2P trading for liquidity, it explicitly states that “Liquidity not guaranteed.”

What are some ethical alternatives to Yieldcrowd.com for real estate investment?

Ethical alternatives include direct ownership of physical real estate, investing in Sharia-compliant real estate funds or Islamic REITs, participating in ethical real estate crowdfunding, and investing in Sukuk Islamic bonds that are truly asset-backed and profit-sharing.

Why is fixed income problematic in Islamic finance?

Fixed income is problematic because it guarantees a return on capital regardless of the actual profit or loss of the underlying venture, violating the Islamic principle of risk-sharing Ghurm bil Ghanm. Myneonpop.com Review

Does Yieldcrowd.com charge fees?

Yieldcrowd.com mentions “Zero Fees” for P2P trading, but a comprehensive fee schedule for management or investment issuance is not explicitly detailed on the homepage.

Any such fees are likely embedded in the fixed return structure.

Can non-U.S. investors invest in Yieldcrowd.com?

Yes, non-U.S. citizens located outside the U.S. are welcome to invest on Yieldcrowd.com.

What is the role of the Stellar Distributed Ledger on Yieldcrowd.com?

The Stellar Distributed Ledger is used to tokenize real estate assets as “YIELD” tokens, aiming to facilitate secondary market liquidity, international access, and transparency.

What kind of properties does Yieldcrowd.com invest in?

Yieldcrowd.com focuses on institutional real estate, including hotels and apartments, primarily in the USA.

Recent acquisitions listed include properties in Arizona, Texas, and California.

What are the risks of investing with Yieldcrowd.com?

Despite claims of stability, Yieldcrowd.com clearly states, “Returns are not guaranteed.

Investing could result in total loss.” The non-guaranteed liquidity is also a significant risk.

Is Yieldcrowd.com suitable for passive income?

Yieldcrowd.com markets itself as suitable for those seeking a “100% passive income stream” due to its fixed income payments, but its Riba-based model makes it unsuitable for ethical investors.

What is the experience of the Yieldcrowd.com team?

The website states that the YIELD bond sponsor, Olson Capital Investments, has been investing in real estate since 2012, and the founding team has decades of experience in software development, operations, and investing. Voyomassage.com Review

How does Yieldcrowd.com compare to traditional investments like stocks or CDs?

Yieldcrowd.com provides a comparison table highlighting its target 9% dividend yield and 13.38% total returns as generally higher than average dividends from publicly traded stocks, CDs, REITs, and private commercial real estate investments.

However, the ethical implications of its fixed-income nature differ significantly.

What does “accredited investor” mean for U.S. investors?

An “accredited investor” in the U.S.

Refers to an individual who earns $200,000 or more per year or $300,000 jointly or has a net worth of at least $1,000,000 excluding their primary residence.

Why is it important to avoid interest-based investments in Islam?

Avoiding interest-based investments is important because Riba is explicitly forbidden in Islamic teachings, promoting economic justice, discouraging exploitation, and fostering genuine risk-sharing in economic activities.

Can I reinvest my interest earnings on Yieldcrowd.com?

Yes, the website states that investors can reinvest their USDC interest payments to potentially earn up to 23% APY over ten years.

However, this is part of the overall interest-based model.