Based in El Segundo, California, PeerStreet is an investment marketplace that was founded in 2013 by real estate attorney Brew Johnson, former Google executive Brett Crosby and former Y Combinator alumnus Alex Perelman. So far, PeerStreet has funded over $300 million in loans and has received a number of awards including LendIt’s “Top Emerging Real Estate Platform” award and the FinTech Breakthrough Award for “Best Overall Peer-to-Peer Lending Platform.”
PeerStreet partners with originators across the country and vets loans, most of which are secured by first liens on real estate. Typically, these loans are short term (6 to 24 months) and have LTVs below 75% while varying across property type, geography, and maturity.
Through PeerStreet, accredited investors can curate their own portfolio of real estate loan investments or select a few custom parameters and allow the company's Automated Investing functionality to take over. In order to qualify as an accredited investor, as defined by the U.S. Securities and Exchange Commission, an investor must meet a specific condition such as earning an income in excess of $200,000 per year, having a net worth exceeding $1 million or being a bank, insurance company or business development company.
Returns can vary, but PeerStreet offers loan investments with an average return of 6% APR to 12% APR.
PeerStreet accepts a minimum investment of $1,000.
PeerStreet offers regular investment accounts as well as self-directed Traditional and Roth IRA accounts.
PeerStreet gives accredited investors the opportunity to delve into the world of real estate finance. The company offers a high average return rate and loans are carefully vetted while typically being secured by first liens on real estate. With a low minimum investment requirement and many loan parameters to choose from, investors can build a diverse portfolio based on their specific preferences.
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