PeerStreet

What we love about PeerStreet

PeerStreet offers unique real estate investments to accredited investors, giving them the opportunity to add a new type of asset to their portfolios. Through PeerStreet, investors help fund mortgages and other forms of real estate debt. PeerStreet manages the loans and returns profits to the loans’ investors.

PeerStreet lets customers select the loans they want to invest in and offers screening tools that they can use to find loans based on their loan-to-value ratio, location, type of real estate, and interest rates.

The company offers high rates of return and the loans it makes are backed by physical assets, which some investors feel reduces their risk.

The minimum investment is $1,000, so it’s easy for investors to get started.

What could PeerStreet do better?

One of the major drawbacks of PeerStreet is that it is only open to accredited investors. SEC rules restrict certain types of investments to this class of investors because of their perceived risk or complexity.

To qualify as an accredited investor, you must meet income or net worth requirements that exclude the vast majority of Americans.

Another drawback of PeerStreet is that it may be riskier than many other types of investments. Private real estate loans usually have a higher risk of late payments, and therefore losses, than other investments, like bonds.

PeerStreet’s backstory

PeerStreet was founded in the wake of the 2008 financial crisis, matching investors with people who want to borrow money to buy real estate. The company has funded more than $300 million in loans since its founding.

The Verdict

If you’re an accredited investor, PeerStreet offers a unique investment class to add to your portfolio. This can help you diversify your investments and may give you strong returns. However, most people won’t qualify as accredited investors, meaning they won’t be able to invest through PeerStreet.