PeerStreet is transforming real estate finance with its marketplace for real estate debt. Founded by real estate attorney, Brew Johnson, and former Google executive, Brett Crosby, PeerStreet allows investors to easily invest in high-yield real estate loans that were historically difficult to access. The company is backed by many notable investors across tech, real estate, law and finance. It closed a $15 million Series A with Andreessen Horowitz as the lead in November 2016.
PeerStreet operates in the private lending market for real estate debt. There are thousands of private lenders that provide financing to real estate entrepreneurs buying properties to fix up and flip or other investment purposes. Those borrowers are typically underserved by banks and private lenders fill the void. However, this market tends to be fragmented and opaque, and lenders have never had an easy way to recycle capital so they can make more loans to serve more borrowers. PeerStreet changes all of that. Lenders that work with PeerStreet can sell loans through the marketplace and then investors have the opportunity to participate in pieces of loans, both small and large. These loan investments have historically provided attractive risk-adjusted returns and with PeerStreet, investors have more access to this asset class, as well as the opportunity to diversify, like never before.
The company always strives to improve returns for investors, reduce the cost of capital for lenders and, as a network effect, reduce overall costs for borrowers. PeerStreet's tech-enabled platform cuts out middlemen, overhead and complexity that makes the traditional mortgage market both inefficient and strips away economic benefits for investors. This isn't a marketplace that unilaterally benefits one group in the ecosystem. PeerStreet creates value for all parties, thereby producing a better deal for everyone.
Recently, PeerStreet has received positive industry accolades recognizing the important work the company does:
There's so much PeerStreet can accomplish by applying marketplace dynamics to this space. You'll just have to speak with the team to find out more!