Real estate investment platform PeerStreet announced on Wednesday the launch of a new loan product for private lenders: Residential for Rent loans. According to PeerStreet, Residential for Rent loans have a 30-year term so borrowers can secure long-term financing for residential rental properties.
PeerStreet reported that because of the longer-term nature of Residential for Rent loans, it is currently offering investment in this product to its pool of institutional investors—a group with a proven appetite for this asset class.
“For PeerStreet’s network of private lenders, this presents an opportunity to do more business with their borrowers, in addition to attracting new customers who need long term financing rather than short term bridge loans.”
While sharing more details about the product, Brew Johnson, co-founder and CEO of PeerStreet, stated:
“We’re very excited to be expanding our marketplace by offering Residential for Rent loans. This is a natural progression for us as a company as we increase our volume of transactions with institutional investors. Our move into this asset class is important to continue to support the growth of our private lending partners and help them better serve their borrowers.”
PeerStreet went on to report that with this product launch, it is taking a big step in developing an even more robust real estate marketplace, expanding its reach beyond short-term bridge loans. The company is not only introducing this product to an active audience, but they are continuing to position its platform for even more growth in 2019. Brett Crosby, Co-founder and COO of PeerStreet, then shared:
“Supporting this new product is incredibly valuable for the PeerStreet marketplace as a whole. More lenders means more loans, which makes it easier for investors to diversify their portfolios. That benefit brings more investor demand, and in turn, enables lenders to attract more quality borrowers. It is a virtuous cycle that builds upon the platform and enriches the marketplace.”
PeerStreet added it developed its platform to enable expansion across many loan types, beginning with Residential Bridge loans, expanding to Multifamily Bridge loans, Small Balance Commercial Bridge loans and now, Residential for Rent loans.