PeerStreet

Lending

PeerStreet merges the world of peer to peer lending with crowdfunded real estate. PeerStreet relies on cutting edge technology like advanced algorithms and big data analytics to review each potential investment.

Investment risk

Medium

Min investment

$1,000

Target return

7% - 12%

Fees

0.25%

Overview

Invest in real estate, without the hassle or expense of managing property. Introducing the first marketplace for investing in real estate debt. Now you can invest in the loans made to borrowers, and as they pay back their loans, you make money. They manage a two-sided marketplace that connects you to investments sourced from a nationwide network of vetted private lenders and brokers. Browse and select from investments offering different yields, terms, and LTV ratios, across either residential or multifamily properties.

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Why Invest

  • Invest in real estate, without the hassle or expense of managing property.
  • Monthly interest payments transferred directly into your account.
  • Easily reinvest or withdraw your earnings at any time.

How you make money

PeerStreet manages a two-sided marketplace that connects you to investments sourced from a nationwide network of vetted private lenders and brokers. You can browse and select from investments offering different yields, terms, and LTV ratios, across either residential or multifamily properties. Use Automated Investing to reserve your spot in investments that meet your criteria as soon as they go live. You then have 24 hours to review each opportunity before committing.This ability to invest—and automatically reinvest in small increments—makes diversification a breeze.

 

PeerStreet distributes interest payments on the 1st and 15th of each month, so investors can expect to receive their pro-rata distributions on investments for which they have collected funds between those dates. Principal and other miscellaneous distributions will be paid as they receive them.

How PeerStreet makes money

Their servicing fee is a “spread” between the interest rate payable on a loan and the interest rate you receive as an investor. With this structure, PeerStreet has aligned interests with their investors as they will only get paid when their investors get paid. Generally, this fee should be in the range of 0.25%-1.00% and it will always be disclosed. PeerStreet’s fee structure keeps their investors’ interest at the top of mind. They’ve aligned themselves in such a way that they only get paid when their investors get paid. Loan performance is equally as important to them as it is to users of their platform.

Is it Safe?

PeerStreet implements a number of controls to ensure their website is as secure as possible for their stakeholders. All of your interactions with the website take place over a secure and encrypted connection that uses SSL/TLS, the industry-standard security technology used by all banks and other financial firms. Personal data is stored using the latest in public key encryption technology in their data center powered by Amazon Web Services. In addition, their hosting services provider undergoes regular penetration testing and vulnerability assessments to validate the integrity of the platform and maintain the privacy of your data.

 

PeerStreet also holds loans in a bankruptcy-remote entity that is separate from their primary corporate entity. In the event PeerStreet no longer remains in business, a third-party “special member” will step in to manage loan investments and ensure that investors continue to receive interest and principal payments. Additionally, investor funds are held in an Investors Trust Account with City National Bank and FDIC insured up to $250,000.

Things to know

  • You make money onInterest
  • Fees0.25%
  • Payout frequencyMonthly
  • Term of investment6-24 months
  • LiquidityModerate
  • Open toAccredited Only

Company

  • Country availabilityUS only
  • Assets under managementUnknown
  • Established2013
  • Mobile Application No

Investment Return Calculator

Calculate your estimated return to reach your investment goals.

$
%
years
$
Frequency
Monthly

Invested

$7,000

Projected fees

$67.99

Projected return

$1,711.39

Value after fees

$8,711.39
Any references to past performance, regarding financial markets or otherwise, do not indicate or guarantee future results.

Forward-looking statements, including without limitations investment outcomes and projections, are hypothetical and educational in nature. The results of any hypothetical projections can and may differ from actual investment results had the strategies been deployed in actual securities accounts.

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