PeerStreet Review
PeerStreet is a
marketplace
based in El Segundo, CA. It was founded in 2013 and offers financing opportunities to investors in
state across the USA.
PeerStreet FAQ
What rate of return can investors expect?
The average rate of return is 6%. However, past performance does not guarantee future results.
What is the minimum investment you can make?
You must invest at least $1,000 to open an account with PeerStreet.
What fees does PeerStreet charge?
Fees may vary but you can expect to pay 0.25% of the amount invested.
What are the income requirements to invest with PeerStreet?
Unlike many real estate platforms, PeerStreet does not require investors to meet income requirements.
In fact, only investors accredited by the U.S. Securities and Exchange Commission qualify. The SEC defines accredited investors as people with a net worth of at least one million dollars without including the value of their primary residence.
Only U.S. citizens
and permanent residents can invest in PeerStreet.
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Message From Our Editor
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.
