Type:
Real Estate Debt
Focus:
Debt

Overall:

Platform Provided Due Diligence:

Platform Fees:

Quality of Deals:

Website  - PerrStreet

Fees - 0.25%-1.00% interest rate spread for servicing

Phone - 844-733-7787

 

PeerStreet may apply a servicing fee on each loan offered for investment. The 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 our interests with our investors as we will only get paid when our investors get paid. Generally, this fee will be in the range of 0.25%-1.00% and it will always be disclosed.

PeerStreet is a marketplace where accredited investors can invest in high-quality private real estate loans. We provide access for accredited investors, funds and institutions to a historically difficult-to-access asset class.

PeerStreet loans are generally secured by first liens on real estate. PeerStreet partners with top-tier originators across the country and carefully vets their loans before making an offering to our investors. Most of our loans are short in duration (6-24 months) with LTVs typically below 75%. PeerStreet’s range of offerings provides investors the opportunity to build a diverse portfolio of loans across property type, geography, maturity, LTV, originator, among other characteristics.

In the event of a default, PeerStreet will handle the workout process and work on behalf of investors to protect their investment and maximize proceeds. Our in-house team has more than 97 years experience in residential and commercial real estate (average of 13 years per person), 52 years of law and 12 years of regulatory compliance, ensuring that the interests of our investors are protected at every stage of the default/foreclosure process. PeerStreet also holds loans in a bankruptcy-remote entity that is separate from our 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.

PeerStreet may apply a servicing fee on each loan offered for investment. The 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 our interests with our investors as we will only get paid when our investors get paid. Generally, this fee will be in the range of 0.25%-1.00% and it will always be disclosed.

Due Diligence & Discussions

Share your experience. Rate and comment!

Blake Salisbury

Jun 08, 2017

I agree with many of the comments on here regarding relatively low returns and high competition for the higher performing notes and not having enough time to study the deals.

One of my loans has gone into default and Peerstreet has currently taken over the property and is trying to sell. No principals has been lost for me on the platform - yet.

Dave P

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".

anna ca

Feb 24, 2017

I've invested with PeerStreet for about 9 months now and haven't lost any principle yet. I've had a few loans that were late but the borrower eventually paid off the loan with late fees and interests.

As other investors have mentioned, I too find that the only way to get into the 10%+ deals is through auto-invest, and those have become far and few. I've also noticed a decreased in deal flows on the lower interests ones as well (perhaps this is more of a seasonal issue). 

For now, I will continue to invest with them as the amount of capital I have with them is fairly small in the larger scheme of things. I just hope that as the gets bigger that it doesn't negatively impact their DD.

 

 

Dave Richter

Feb 18, 2017

I liked Peerstreet platform, though the rates they pay are low.  I also have found that as the popularity has grown I had to do auto-invest to get into deals.  No complaints though with auto-invest, it works.

Overall, I think its a good platform though I wish they make it easier to review deals and get in.  I hate feeling rushed to make a decision.

 

richard hedrick

Feb 07, 2017

I have been investing with PeerStreet just under a year.  They are highly rated and have a user friendly interface.  They deal only with debt issues and are mostly single family homes.  Yields are generally between 7 - 11% with the 10%+ category being in high demand on the platform. Their fees run at 1%. 

An issue for me with PeerStreet is that if you want the higher yields, 10%+, you may not have time to study the offerings.  The only way to get in on the higher yields is to auto invest. Auto invest is where you setup minimum parameters that you are willing to accept and then the system automatically places you in an offering that meets those parameters.   You do have 24 hours to cancel your investment after you have been auto invested in an offering but that does not seem like a good methodology as that may not give you the time you need to look it over. 

My experience has been that if I auto-invest, using 10% as a minimum return in my settings, I get in on every 2nd or 3rd offering.  Technically you are on a waiting list though you do not see it.  For the higher yields it is not possible to invest not using the auto invest feature because by the time you get the email of a new 10% offering it is already fully invested as everyone else seems to be auto investing.  The 8% offerings hang around a bit before they are fully invested so plenty of time to study them.

PeerStreet claims no foreclosures which is reassuring, however I do have one position that has not paid since October of 2016.  PeerStreet is good about adding comments as to the status when this occurs but they are not all that informative. Based on some of their latest offering I have been wondering if their desire to keep up with demand has weakened their standards and due diligence.

Overall I like the platform, it has an easy to use interface and it make it easy to monitor your positions.   I do think the lower investment limits of the platform (I think it is 1K) brings in too many investors shortening the time you have to study the properties as they close almost immediately on the higher yield offers.  It makes the whole process seem a little sloppy. 

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Rated 2.7/5 based on 19 customer reviews

Website  - PerrStreet

Fees - 0.25%-1.00% interest rate spread for servicing

Phone - 844-733-7787

 

PeerStreet may apply a servicing fee on each loan offered for investment. The 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 our interests with our investors as we will only get paid when our investors get paid. Generally, this fee will be in the range of 0.25%-1.00% and it will always be disclosed.

PeerStreet is a marketplace where accredited investors can invest in high-quality private real estate loans. We provide access for accredited investors, funds and institutions to a historically difficult-to-access asset class.

PeerStreet loans are generally secured by first liens on real estate. PeerStreet partners with top-tier originators across the country and carefully vets their loans before making an offering to our investors. Most of our loans are short in duration (6-24 months) with LTVs typically below 75%. PeerStreet’s range of offerings provides investors the opportunity to build a diverse portfolio of loans across property type, geography, maturity, LTV, originator, among other characteristics.

In the event of a default, PeerStreet will handle the workout process and work on behalf of investors to protect their investment and maximize proceeds. Our in-house team has more than 97 years experience in residential and commercial real estate (average of 13 years per person), 52 years of law and 12 years of regulatory compliance, ensuring that the interests of our investors are protected at every stage of the default/foreclosure process. PeerStreet also holds loans in a bankruptcy-remote entity that is separate from our 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.

PeerStreet may apply a servicing fee on each loan offered for investment. The 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 our interests with our investors as we will only get paid when our investors get paid. Generally, this fee will be in the range of 0.25%-1.00% and it will always be disclosed.