Mar 18, 2017
I’m impressed with PeerStreet. I researched them for a couple of weeks and just recently their automatic system placed me into an investment (loan) that I’m very happy with. My first loan has an APR of 9.5% plus I get another 1% bump (because a friend gave me a referral link) for a total return of 10.5%. This investment has a low LTV of 61%, which I like.
I asked PS customer service what would happen to my principal $ if they went out of business and he replied "PeerStreet is set up as two companies. I work PeerStreet Inc. which is our operating company. It pays all the expenses of the business. We also have a bankruptcy remote special purpose entity called PeerStreet Funding LLC (PSF). PSF holds all the notes and its sole purpose is to service loans and pay interests and principle back to investors. If PeerStreet Inc. were to go out of business for any reason, a springing member would be activated (we pay a monthly premium for this, think of it as an insurance policy) who's sole responsibility would be to continue servicing the existing loans and return capital back to investors".