PeerStreet new account offers, bonuses, incentives for opening new real estate investment account.

PeerStreet Promotion

Earn 7.00% - 12.00% APR with real estate investing.

Open PeerStreet Account

PeerStreet Review

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What is PeerStreet?

PeerStreet is a unique investment platform that makes investing in private real estate loans accessible to accredited investors. They work with their network of trusted lenders to identify the most attractive real estate loans to make available on their platform. As a PeerStreet investor, you can browse through the different loans on their platform and make investments in the ones you find attractive. If this sounds interesting to you, continue reading for an overview of PeerStreet’s platform.

How Does Real Estate Debt Investing Work?

When John Doe takes out a private loan to purchase a house, the lender makes money right away from the underwriting fees. The lender may also choose to hold onto the loan as an investment and collect the recurring interest payments or, in many cases, they choose to sell the loan to other investors so they have more cash to make new loans and collect more fees. If it’s the latter case, a firm like PeerStreet may be one of the third party investors that purchase the loan. PeerStreet then slices the loan into $1,000 increments to resell to investors on their platform.

PeerStreet 30 days rate

What Kinds of Real Estate Properties Back these Loans?

PeerStreet offers loans that back a variety of different types of properties, including condos, single family residential homes, office buildings, retail buildings, and industrial warehouses from across the Unites States. This allows investors to diversify their portfolios by property type or alternatively, to target specific types of loans.

How Safe Is It?

PeerStreet only selects loans that meet their quality criteria from private lenders whose underwriting procedures they’ve vetted and trust. Most of the loans they buy are short in duration (6-2 months) and have decent LTV ratios typically below 75%, meaning that the amount of the loan is generally not more than 75% of the property’s appraised value. The loans are backed by the real estate for which they were underwritten, which means that in the event of default, the lender would have first claim on the property.

What Returns Can I Expect?

PeerStreet says annual returns on their diversified loan portfolios are generally between 6-9%. This is higher than the current mortgage rate because these loans are from private lenders, which offer more flexible access to capital than traditional banks in exchange for higher rates. These returns are also similar to the average return on stocks over the long-term but are generally more consistent and less volatile since debt investors take priority over equity investors when there is financial trouble.

What Are the Fees?

The exact service fees vary from loan to loan but are always disclosed and are generally between 0.25% and 1.00%. PeerStreet charges this as a spread between the interest rate payable on the loan and the rate you actually receive to ensure that PeerStreet’s interests are aligned with yours as the investor (i.e. they only get paid as long as you are getting paid). For example, if PeerStreet buys a loan that pays 8.5% interest and they a charge a 0.50% service fee, you as the investor, would receive 8.0%.

Who Can Invest and How Much Money Do I Need?

Unfortunately, you must be an accredited investor to invest with PeerStreet. To be an accredited investor, the Securities and Exchange Commission (SEC) says you must either have annual income of at least $200,000 ($300,000 for married couples) or at least $1,000,000 in net worth (excluding the value of your primary residence). Assuming you qualify as an accredited investor, PeerStreet will let you invest as little as $1,000 per loan.

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PeerStreet Promotion reviewed by Rating: 4.5