Leading Real Estate Crowdfunding Platform PeerStreet Raises $60 Million Series Plus $4.25 Billion in Commitments

PeerStreet, a leading platform for investing in real estate backed loans, has closed on a $60 million Series C funding round led by Colchis Capital as the Fintech continues to execute on its unique approach to online lending. Existing investors Andreessen Horowitz, World Innovation Lab and Thomvest Ventures also joined in the funding round.

Additionally, PeerStreet reported that it has secured a whopping $4.25 billion in new capital commitments from institutions to purchase loans through PeerStreet’s proprietary platform. PeerStreet provides access to investment opportunities for both retail (accredited) and institutional investors.

PeerStreet said that it will use the new capital infusion to hire top talent and “scale PeerStreet’s two-sided marketplace—the first and largest of its kind for investing in real estate debt.”

Ted Conrads, co-founder and president at Colchis Capital, said they have been a strategic partner with PeerStreet for years as an investor in both the company and loans originated on the platform.

 “We’re excited to be a part of their growth as they continue to innovate as the market leader.”

Brew Johnson, PeerStreet’s CEO and co-founder, said that 2019 has been an incredible year of growth for his company and he expects that growth to accelerate.

“The injection of equity capital into our business via the Series C, combined with strong demand from loan buyers, means we will continue to provide value for lenders, end borrowers, and investors for years to come.”

PeerStreet’s COO and co-founder Brett Crosby said that society is at a crossroads and there is a shortage of housing in many areas of the country and nearly 40% of existing homes were built before 1970 thus highlighting the industry’s opportunity.

“We can either build more homes and continue to take over green spaces, or we can up-cycle the existing aging and dilapidated housing stock. PeerStreet’s business model ultimately supports real estate entrepreneurs doing the latter, curing the capital constraints that have held them back and allowing them to reinvest in American communities.”

PeerStreet was founded in 2013 and has since transacted over $2 billion in loans. PeerStreet has emerged as a leader in the real estate sector for Fintechs using digital operations to provide a new approach to financing for the industry.

PeerStreet notes that each investment opportunity is reviewed both algorithmically by the company’s technology platform, as well as manually by experienced in-house real estate and legal teams. The company then aggregates those loans for institutional and accredited retail investors, who in turn provide PeerStreet-approved lenders with capital. Those lenders then make loans to end borrowers who buy properties, improve them, then either sell them to homebuyers or rent them out to tenants.

PeerStreet Named CRETech 2019 Real Estate Tech Award Winner

Real estate investment platform PeerStreet announced on Tuesday it won first place in CRETech’s 2019 Real Estate Tech Awards (RETAs for the Information & Intelligence – Crowdfunding category.

According to PeerStreet, CRETech’s RETAS recognizes the year’s most innovative and cutting-edge companies that have played an integral role in advancing tech in the real estate industry. Winners are selected by a panel of judges, including the venture capitalists, angel investors, corporate investors, and thought leaders in the real estate tech industry. Speaking about the award, Brett Crosby, COO and Co-Founder of PeerStreet, stated:

“PeerStreet’s vision is to align the interests of everyone in this ecosystem—from lenders and investors to borrowers and the communities they represent—by providing both easier access to real estate debt and empowering participants to make better decisions. Winning a RETAS is great validation to our entire team that the work we’re doing is transforming this industry for the better.”

PeerStreet went on to report that the award comes after it recently expanded its product offerings into long-term real estate debt through a new Residential For Rent program and incorporated more loan types into its Automated Investing feature, which now boasts a low $100 minimum for small-balance reinvestments. The company added that it has more than  $2 billion transacted on the platform and more than $1 billion in assets under management to date.

Real Estate Investment Platform PeerStreet Integrates with Mint

PeerStreet, a real estate investment platform, has integrated with Mint.

This is the fourth “integration” with PeerStreet already forming partnerships with Betterment, Wealthfront, and Personal Capital.

PeerStreet has emerged as a leading property crowdfunding platform. While some early leaders rushed to scale at all cost, PeerStreet’s steady build appears to have served it well.

The debt-based platform topped $2 billion in real estate loans this past May.

Recently, Crowdfund Insider reported about the growing interest of institutional capital in the investment platform.  While big money may be just around the corner, accredited investors may participate on PeerStreet for as little as $100. Returns for investors currently range from 6% to 9%. Loan terms typically stand between 6 to 36 months.

PeerStreet said it is “changing the way investors approach real estate investing and allowing users to make more informed decisions on their capital allocation by seeing their PeerStreet performance within the full context of their portfolios.”

The company said that Mint was one of the most requested integrations by their community of investors.

Institutional Money is Coming: Real Estate Crowdfunding Platform PeerStreet Hires Wall Street Veteran to Manage “Substantial Institutional Growth”

PeerStreet, a leading crowdfunding platform serving the real estate marketplace, is expecting “substantial institutional growth.” In the online capital formation world, institutional money is needed for a platform to effectively scale. Since platform launch, PeerStreet has done a pretty effective job as loan facilitations have topped $2 billion. Recently, PeerStreet dropped their platform minimum for individual investors to just $100. Today PeerStreet is heading the other direction as it has sufficiently established a viable real estate marketplace.

According to a release from PeerStreet, Wall Street veteran Deepa Salastekar has been appointed as the Vice President of Institutional Sales.

Salastekar has a hefty resume when it comes to traditional and innovative finance. She has spent nine years as a Senior Vice President at Pacific Investment Management Company in Alternative Sales, eight years at Bear Stearns & Co, Inc. as a Managing Director in Fixed Income Institutional Sales of Derivatives, and most recently as Co-Head of Securities for Inveniam Capital Partners, a platform focused on blockchain-enabled tokens for private debt. Salastekar received an MBA from the University of Chicago Booth School of Business and a BA from Rutgers University.

Brew Johnson, co-founder and CEO of PeerStreet, explained they are currently experiencing significant demand from institutional investors. PeerStreet is fortunate to have someone of Salastekar’s caliber to lead the expansion:

 “We can’t wait to see where her leadership takes us.”

For her part, Salastekar shares that institutional investors like mortgages originated by private lenders but the current marketplace is very fragmented thus it is challenging for them to get the exposure and volume. PeerStreet fixes this problem.

“PeerStreet immediately resonated with me because it solves real problems for institutions by making it dramatically easier to access and diversify across investments in fragmented markets,” Salastekar said.

PeerStreet is now a five-year-old platform with a sufficient track record to attract talent like Salastekar. PeerStreet efficiently connects private accredited investors with short term debt backed by property. PeerStreet maintains a vetted network of private lenders with diverse sources of capital. The company’s vision is to align the interests of their ecosystem—from lenders and investors to borrowers and the local communities they represent.

PeerStreet Reports Accelerating Growth as the Real Estate Platform Tops $2 Billion in Property Lending

This past March, PeerStreet, a real estate crowdfunding platform, announced that it had topped $2 billion in transactions and over $1 billion in Assets Under Management. Three months early in January, that transaction number stood at $1.7 billion. If that pace holds, PeerStreet should be nearing $3 billion in transactions by the end of the year thus firmly establishing itself as a leading property lending platform. While some sectors of real estate crowdfunding have struggled, PeerStreet does not appear to be one of them.

In a blog post, PeerStreet said that volume matters because it is integral to the health of their service but it is not the only benchmark they should be measured by. PeerStreet stated:

“To truly transform this industry, we’ve aimed to integrate relatively novel concepts in the space: access, control, transparency, and the ability for all our investors to easily diversify (a common strategy to mitigate against potentially changing markets). That’s how we are working to level the playing field between Wall Street and Main Street.”

Currently, short term debt in the real estate market is a fragmented, analog ecosystem. PeerStreet is turning that fragmentation into digital opportunity.

Up until March, astonishingly, PeerStreet had reported no net losses to investors. That quality could not remain forever as the platform scaled. PeerStreet has reported that of the over 4700 loans they have transacted 136 loans have gone into default. But since each loan is secured by the property investors stand a good chance of recouping their investment.

PeerStreet is debt based only and, according to their website, annualized returns range from 6% t0 9%. Most loans are short in duration (6-24 months) with LTVs typically below 75%.

While PeerStreet is only available to accredited investors, the platform has recently lowered its minimum investment to just $100 as it seeks to open up the investment opportunity to as wide of an audience as possible.

Crowdfund Insider recently reached out to PeerStreet for an update on their platform and expectations for the coming year. Our discussion with PeerStreet co-founder Brett Crosby is shared below.


PeerStreet has now facilitated over $2 billion in real estate lending. Is your growth accelerating? Where do you expect that number to be at the end of 2019?

Brett Crosby: Yes, growth has accelerated fairly consistently as we have built out our marketplace. As we continue to automate manual tasks with software, there are many inefficiencies to unlock in this space for PeerStreet, our investor-base and our lenders. The opportunities are pretty staggering.

What is the “sweet spot” for your deals? Will you be expanding into larger projects?

Brett Crosby: Our sweet spot has been short term bridge loans for fix-and-flip and buy-to-rent borrowers. That’s still the bulk of our business, but last year we also added new investment options including small balance commercial and multifamily loans.

Because we have hundreds of lenders that we work with, just 6 months after we rolled out these new loan types, they represent over 20% of our volume.

Last month we also launched a 30-year residential-for-rent loan option to our lenders.

It is early, but we’re already seeing good traction on that product and expect to see it grow nicely. This product is filling a real void in the market for private lenders and their borrowers.

Any interest in adding Reg A+ offerings to your options?

Brett Crosby: Our goal is to allow as many people as possible to invest in short term real estate debt, so it is something we have looked at along with other potential options. But we don’t have anything to announce on that at this time.

We also believe there is room for change in the definition of an accredited investor, and it’s something we hope to see happen soon.

Are you considering the creation of a secondary market?

Brett Crosby:  The ability for investors to have liquidity in real estate debt would be potentially game-changing as the “term” or duration of the underlying loan could become much less of a factor.

A secondary market could open the ability for people to invest in 30 year mortgages for example, without having to stay in the investment for any longer than they wish.

There are a variety of ways to make this happen, but we don’t have anything to announce at this time.

[easy-tweet tweet=”The ability for investors to have liquidity in real estate debt would be potentially game-changing as the “term” or duration of the underlying loan could become much less of a factor #Fintech” template=”light”]

What about blockchain and tokenization. Are you considering going crypto?

Brett Crosby: We’ve explored many opportunities in crypto, but at this time, there isn’t an entirely clear path forward that unlocks tremendous user advantages over our current system.

But the blockchain could be an interesting foundation for creating a secondary market.

What happens when the real estate market slows?

Brett Crosby: The housing market already showed signs of slowing last year but our business continued to grow.  If there is a major slowdown, we believe there is a big opportunity for PeerStreet as our marketplace provides a very differentiated opportunity for investors as well as lenders and their borrowers.

We created our business as a two-sided marketplace so that we’re not reliant on any single lender or any single capital source.

Instead, both lenders and investors benefit by PeerStreet being the intermediary that connects them to a number of counterparties that would be nearly impossible to access on their own.  Because of that, we believe our marketplace will continue to be the place where capital and deals can connect.

Our belief is that while certain lenders may stop lending and some large institutions in the market may stop buying loans, others will step in to fill those voids and connect via PeerStreet.

I tell lenders all the time that if they are selling their loans to buyers backed by a single capital source, they should be thinking about the risk of a slow down and consider an alternative like PeerStreet before it happens.

Similarly, investors can access deal flow from hundreds of lenders and multiple loan types, all in different markets around the country. That provides much more opportunity for diversification through various market cycles.

Any big announcements on the horizon?

Brett Crosby: We have one planned for this quarter, and will keep you posted!

PeerStreet Update: Lowers Minimum to $100 & Adds New Investment Options to Automated Investing

Real estate investment platform PeerStreet announced on Monday it is updating its Automated Investing product functionality to make it even easier for investors to diversify on the funding portal. PeerStreet reported that it has lowered its minimum investment to just $100 for small balance reinvestments when using the Automated Investing feature. PeerStreet also revealed that the update expands the investment types available for Automated Investing to include Cash Offer Loans and 30-Day Notes, which have shorter-term note rates than the platform’s typical bridge loan investment options.

“Automated Investing is a popular feature among PeerStreet’s thousands of individual investors—well over half of all investments are made through Automated Investing. These changes further an important part of the PeerStreet ethos: to help investors diversify and maintain control of their portfolios. To prevent idle cash in PeerStreet accounts, customers can now automatically reinvest as little as $100 in new investment opportunities on the platform (the reinvestment minimum was previously $1,000). This better enables investors to quickly turn interest payments into active investments.”

PeerStreet then explained that in addition to this lowered reinvestment minimum, investors may now select Cash Offer Loans and 30-Day Notes for Automated Investing as well. Now all current investment types that are available on PeerStreet can be invested in through Automated Investing. While sharing more details about the update, Brett Crosby, co-founder and COO of PeerStreet, stated:

“We’ve answered the call from customers who have been asking for these Automated Investing features, which can help people diversify their portfolios with greater ease than ever before. These changes are designed to help more people get access to the investments they want.”

PeerStreet then added that the update comes on the heels of its announcement in March that it had over $2 billion transacted on the platform and $1 billion in assets under management, as well as a recent expansion into Residential for Rent loans.

Real Estate Crowdfunding Platform PeerStreet Expands Product Line By Launching Residential for Rent Loans

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.

Real Estate Crowdfunding Platform PeerStreet Boosts Executive Team with Two New Hires

Highly rated real estate investment platform PeerStreet has hired two new executives with extensive experience in the financial services and real estate sectors. PeerStreet reports that Ellen Coleman has joined the platform as Executive Vice President of Finance.  Additionally, Bob Brown has been hired as Executive Vice President of Finance & Corporate Development.

Before PeerStreet, Coleman held positions as Managing Director at Countrywide Financial Corp, Treasurer at Stearns Lending, and Executive Vice President and Treasurer at both Nationstar Mortgage and Homeward Residential, Inc.

Brown was previously a Senior Managing Director in FBR’s Financial Services Investment Banking division.

Five year old PeerStreet continues to grow and has made mulitple hires in the past 12 months. PeerStreet has now facilitated over $1.7 billion in real estate loans as of January 1, 2019.

PeerStreet now employs over 185 full-time staff, and doubled its office footprint this February to accommodate the company’s momentum and accelerated growth plans.

“These are particularly exciting hires for us, because they build upon the strong financial foundation we’ve already set, while better preparing us for our growth trajectory—in 2019 and beyond,” commented Brew Johnson, co-founder and CEO of PeerStreet. “We’re at a place now where we need this level of specialized, senior talent, and we’ve found that with Ellen and Bob.”

Real Estate Crowdfunding Platform PeerStreet Recognized as Best Place to Work

PeerStreet has been recognized as one of the 2019 Best Places to Work in Financial Technology (Fintech). The awards program is a project of SourceMedia and Best Companies Group.

The relatively young survey seeks to identify and highlight the best employers in Fintech. Previously, PeerStreet received a similar accolade from American Banker. PeerStreet is also included in CB Insights Fintech 250 list of fastest-growing Fintech startups and the HousingWire Tech 100. In 2018, PeerStreet was also named a best place to work by the Comparably Awards, including in the Overall Best Companies and Best Companies for Diversity categories.

Brett Crosby, co-founder and COO of PeerStreet, commented on the award:

“We experienced massive growth for PeerStreet last year. We surpassed $1 billion transacted on our platform in 2018 alone and continued to develop new products for our investors and lenders. We are incredibly proud that with this growth, PeerStreet has remained focused on maintaining a collaborative and inspiring place to work for our team.”

PeerStreet is an investment platform that democratizes access to real estate debt investments. Residential and commercial property loans are sourced from vetted private lenders throughout the United States. PeerStreet was f0unded in 2013 and is backed by Andreessen Horowitz, among others.

PeerStreet Announces Software Integration with Liquid Logics

PeerStreet, a real estate crowdfunding platform that has crafted an interesting niche that pairs retail investors with institutional money, announced on Wednesday it has formed a new integration with Liquid Logics, a market-leading loan origination software (LOS) platform.

PeerStreet reported that approved lenders can submit loan information and documents directly to PeerStreet for evaluation, and potential sale, with a single click. Speaking about the integration, Brew Johnson, Co-Founder and CEO of PeerStreet, stated:

“By creating this seamless integration, the loan submission process is easier. And when that process is easier, there are more opportunities for lenders to sell their loans to a diverse pool of investors. That stands to benefit our entire marketplace: more loans from our lender network means more opportunities for PeerStreet investors to better diversify their investment portfolios. That demand for diversification then increases the overall demand for investments in loans, which further fuels lenders who in turn work with more high-quality borrowers. It is a virtuous cycle that benefits all participants.”

Sam Kaddah, Founder and CEO of Liquid Logics, also commented:

“We’re very excited about this partnership, as it solidifies next-generation technologies in the FinTech space by merging loan origination directly into PeerStreet’s investor marketplace. With this partnership, Liquid Logics helps lenders achieve faster and more efficient lending cycles by connecting them to additional sources of capital from PeerStreet — allowing them to do more business and to do it better.”

The software integration with Liquid Logics comes just after PeerStreet revealed it funded $1 billion in debt based financing during 2018 has now topped $1.7 billion in real estate lending as the platform increases velocity and scales. PeerStreet reported that during the year they made several refinements and added new products to boost diversification and overall asset quality. Options for investors now include commercial real estate, single-family, multi-family plus cash offer loans and 30-day notes. Expect more products to enter the platform.

PeerStreet: $1.7 Billion in Real Estate Crowdfunding Since Platform Launch

PeerStreet, a real estate crowdfunding platform that has crafted an interesting niche that pairs retail investors with institutional money, has posted an update on 2018 performance. PeerStreet, having funded $1 billion in debt based financing during 2018 has now topped $1.7 billion in real estate lending as the platform increases velocity and scales.

Management states that, as they grow, more loans creates more data thus improving their underwriting process. PeerStreet says that during the year they made several refinements and added new products to boost diversification and overall asset quality. Options for investors now include commercial real estate, single-family, multi-family plus cash offer loans and 30-day notes. Expect more products to enter the platform.

During 2018, the real estate crowdfunding sector saw a bifurcation of sorts as some platforms struggled, some shuttered their doors, and others thrived. There is not a single model that has been deemed the path to success but multiple models driven by execution and efficacy of management. Some platforms, fueled excessively by the lure of VC money and need to exhibit outsized growth early on, have been the ones to struggle or fail.

Last year, PeerStreet co-founder and COO Brett Crosby explained to CI their differentiated business model that has allowed it to scale across the country. Their vision appears to be working quite well. The debt based platform focuses on short-term loans with a first lien and a loan to value of around 75%. Crosby said:

“It’s a nuance but it has a lot of large ramifications … Instead of going after borrowers we are going after the lenders.”

Crosby also commented on the growth of institutional investors adding that they do not want to do this in a way that negatively impacts retail investors as they match big money with small. Both sides need to win.

While past performance is never a guarantee of future success, PeerStreet is heading in the right direction. As the herd of real estate investment platforms narrows, PeerStreet remains a crowdfunding platform to watch in 2019.

 

Real Estate Platform PeerStreet Recognized as Fast Growing Fintech Startup

PeerStreet, a crowdfunding platform for real estate loans, has been recognized as one of the fastest growing Fintech startups in the US. The 2nd annual CB Insights Fintech 25o list has included PeerStreet for the 2nd year in a row. PeerStreet was founded in 2013 and has had over $1 billion invested in loans to date.

PeerStreet notes that this recognition comes on the third anniversary of the platform opening up to all accredited investors which was announced at Money 20/20 in 2016.

“Our goal is to level the playing field between Wall Street and Main Street, and to bring this unique asset class to all investors, both through access as well as ease of investment,” commented Brett Crosby, co-founder and COO of PeerStreet. “We are honored to be recognized by CB Insights on the eve of our third-year anniversary of opening to the public, and we look forward to continuing to introduce new and seasoned real estate investors to PeerStreet.”

PeerStreet has emerged as a leader in the real state investment marketplace with its unique process of originating loans. Currently, thousands of retail customers are actively investing on the platform alongside various institutional investors.

The loans listed on the PeerStreet platform are vetted by private lenders who know their communities well, and then again by PeerStreet’s own team using big data and market research. PeerStreet offers detailed information on each loan and prides itself on transparency and user friendly experience.

PeerStreet also integrates with personal finance platforms, including Betterment, Wealthfront and Personal Capital, in addition to offering a self-directed IRA for investors seeking the benefits of tax-deferred investing.

According to CB Insights CEO Anand Sanwal, 22 Fintechs out of the Fintech 250 have already exited with half via an initial public offering. The 2017 vintage went on to raise $23 billion including 30 that raised over $100 million in funding.

PeerStreet Moves into Shorter Term “Cash Offer Loans” for Property Investors

Real estate investment platform PeerStreet has announced the addition of a new investment option: “Cash Offer Loans.”

According to PeerStreet, these Cash Offer Loans are an investment option that allows investors access to a security with a shorter duration than current bridge loans. Investors may now view these loans with differing yields based upon the investments’ risk profiles. Terms run from as short as 30 days and up to 36 months. Current rates of return on not viewable for non-registered users of PeerStreet but overall historical returns on the PeerStreet platform have ranged from 6% to 9% annually.

PeerStreet COO Brett Crosby said their goal has always been to level the playing field between Wall Street and Main Street when it comes to real estate investing.

“So we want to bring as much variety and diversification to our investors as we can and help them invest in real estate backed loans effortlessly – Cash Offer Loans is our newest addition to this end,” stated Crosby.

For homebuyers, PeerStreet says that Cash Offer Loans provide a better chance of purchasing their next home by effectively allowing an all cash offer.

PeerStreet believes they are helping families buy the homes they want to live in without having loan contingencies on their purchase.

John Devereux, Chief Real Estate Officer at PeerStreet, said they are very excited with the new offering for their investors.

 “We’re committed to progressing innovation in real estate, and when we see innovations happening in other areas – such as home buying – we think about how to potentially bring the benefits to our users, at the same time as contributing to the improvement of the industry as a whole.”

The real estate crowdfunding platform was founded in 2013. The PeerStreet marketplace allows accredited investors the ability to invest in fixed income assets tied to property. To date, PeerStreet has had over $1 billion invested in loans via their platform.

PeerStreet’s Nia Patel Named One of HousingWire’s 2018 Rising Stars

PeerStreet, a marketplace for investing in real estate backed loans, announced on Friday that one its managers, Nia Patel, has been named to HousingWire’s 2018 Rising Stars list of young leaders to watch in the housing industry. According to PeerStreet, HousingWire’s 2018 Rising Stars list recognizes talent that demonstrates leadership and innovation, inspiring not only those within their company but also their communities and the industry at large.

PeerStreet reported that Patel began her career at its office as an entry level Real Estate Analyst but quickly climbed the ranks to her current role as Manager of Underwriting. She currently oversees the entire underwriting team at PeerStreet, which ensures the loans purchased by PeerStreet meet its underwriting criteria.

In a few short years, she went from starting on the team to managing it. She’s now responsible for overseeing a group of over twenty-five people – and growing. Nia’s role and her team is core to the underwriting of the loans offered on PeerStreet’s platform, and her commitment and dedication to the job is evident every day in her work. Nia previously worked at Morgan Stanley, where she was on the Private Wealth Management team.

Speaking about Patel’s achievement, Brew Johnson, Co-Founder and CEO of PeerStreet, stated: 

“It was clear from the beginning that Nia is an outstanding talent and exemplifies everything you look for in a colleague: intelligent, hard working and fun to be around. She and her team are crucial to ensuring that PeerStreet can continue to scale while maintaining our standard of quality for our customers. We can’t wait to see what the future holds for her.”

Brett Crosby, Co-Founder and COO of PeerStreet, also commented:

“Nia came in with a positive attitude and incredible work ethic that helped her become a key part of the company as soon as we hired her. She’s proven herself to be both a leader and a team player. She’s a perfect example of what we look for here at PeerStreet.”

Patel is notably one of 40 Rising Stars on HousingWire’s list, all of whom represent a variety of occupations within the housing industry. Jacob Gaffney, editor-in-chief of HousingWire, added:

“This year’s Rising Stars list represents the only independent award for young professionals in the mortgage space. It’s a comprehensive snapshot of who’s who in our business and the most impressive list to date.”

PeerStreet Milestone: Funds One Billion in Loans

PeerStreet, an online platform for investing in real estate backed loans, announced on Wednesday that one billion in loans have been funded through its marketplace since launch. This announcement comes after the investment portal announced the close of its $30 million Series B last month. PeerStreet reported that just one year ago, it announced that it had funded $300 million in loans. By September, it had surpassed $500 million and now – $1 billion.

While sharing details about the latest milestone, PeerStreet Co-Founder and CEO, Brew Johnson, stated:

“It’s been incredibly gratifying to watch PeerStreet grow from an idea to where we are today, with over a hundred employees and a billion in loans funded. Hitting milestones like this and seeing our business accelerate is credit to a lot of hard work that has been put in by an amazing team, but we’re still just getting started. We’re more excited about what’s to come.”

Brett Crosby, Co-Founder and COO, also commented:

“We built this company by applying an ecosystem approach that we’ve seen work with some of the most important technology companies. If you look at companies like Google and Amazon, they’ve organized and connected a previously disorganized system which unlocked value for all the participants. We’re applying that same concept to the US mortgage finance industry – one of the largest financial markets in the world, but also one of the most opaque and inaccessible.”

PeerStreet added since launching it has won numerous accolades for both its technology and culture, including the LendIt Emerging Real Estate Platform Award, the Fintech Breakthrough Award for the Best Overall Peer-to-Peer Lending Platform, and being named one of American Banker’s Best Fintechs to Work for.

Industry Veteran Hired by PeerStreet as Chief Real Estate Officer to Boost Platform Expansion

PeerStreet, a real estate investment platform, has has appointed John Devereux as Chief Real Estate Officer. The hiring comes following a $29.5 million Series B funding round, with plans to increase it’s pace of hiring. PeerStreets growth has rocketed in the past 12 months having topped $900 million in real estate secured loans.

Devereux will be based in the firm’s headquarters in Los Angeles, California. He will be responsible for strategic oversight and management of the loans offered for investment on the platform including, business development, account management, underwriting, servicing and portfolio management.

Devereux’s prior experience over 28 years of real estate equity and debt experience including six years as EVP, Head of Commercial Real Estate at OneWest Bank and nine years as Principal at Colony Capital.

Early on at OneWest Bank, Devereux was said to be instrumental in growing the commercial real estate holdings from less than $500 million to more than $6 billion in less than a year. In this role, he started and managed several groups: Special Assets, Portfolio Management and Bridge Lending. The CRE Bridge Lending Group originated over $1 billion annually in floating rate debt. Devereux graduated from Stanford University with a mechanical engineering degree and holds an MBA from UCLA.

Devereux’s real estate background in both debt and equity help further the firm’s long-term business objectives.

“Following our Series B funding, PeerStreet has entered a new state of expansion and deepening our reach within the industry,” said Brew Johnson, CEO of PeerStreet. “John has unparalleled experience and is an industry leader at what he does; we are extremely pleased to have him on board.”

Devereux said the high-energy culture and the caliber of talent at PeerStreet attracted him to the business;

“I find the business to be extremely compelling,” said Devereux. “My experience and skills are a great fit at this stage of the company’s evolution, and I look forward to applying them here.”

 

Scaling Real Estate Crowdfunding: PeerStreet Establishes a Culture of Excellence at the Top

PeerStreet is an award-winning real estate investment platform that wants to enable a far wider audience to invest in real estate debt. The company provides investments in short term, real estate backed loans – an asset class that has traditionally been difficult to access for most investors. The enactment of investment crowdfunding laws have allowed a handful of successful real estate crowdfunding platforms to emerge and PeerStreet is rising rapidly within this group.

Loans on PeerStreet are sourced and curated from vetted private lenders throughout the United States. These lenders have real estate expertise and established borrower relationships. To date, PeerStreet has helped to finance over $900 million in loans by using this partnership approach. The properties they help finance are typically smaller in value – a segment of the industry that is usually overlooked by big institutional money. Loans range from 6 to 24 months and are first lien so investors have a good degree of security.  Most of the loans are below a loan to value of 75%. About a year ago, PeerStreet announced having funded $300 million in loans. In less than 12 months, PeerStreet has funded triple that number.

[easy-tweet tweet=”About a year ago, PeerStreet announced having funded $300 million in loans. In less than 12 months, PeerStreet has funded triple that number #RealEstate #Crowdfunding #Fintech” template=”light”]

PeerStreet is led by former real estate attorney Brew Johnson, former Google executive Brett Crosby, and Y Combinator alumnus Alex Perelman. Recently, PeerStreet closed on a Series B funding round raising $29.5 million to help the early stage company execute on its mission of providing “unprecedented access to high-quality real estate loans.”

CI had the chance to speak with Crosby during the recently held LendIt Fintech conference. We discussed the change in the real estate crowdfunding sector as some of the early platforms have disappeared while others have become noticeably quite – perhaps foreshadowing a consolidation within the sector. Crosby calls the early days “pre-Cambrian.” The hype has diminished, but platforms with the horsepower and ability to execute are rising to the top.

“I would be surprised if you don’t start to see some breakout companies. I would also be surprised not to see some M&A in the space,” said Crosby.

Crosby is of the opinion that there are a lot of players that did not have a unique enough angle to survive. This may be the teen phase of the industry and it should start to mature over the next couple of years.

One of the key reasons PeerStreet has been successful is the company has established a positive culture at the top.

“People like where they are working. Our retention is really good,” Crosby explained. “This is all really, really key.”

PeerStreet’s differentiated business model has allowed it to scale across the country and they believe they have chosen the right path to grow.

“It’s a nuance but it has a lot of large ramifications,” said Crosby. “Instead of going after borrowers we are going after the lenders.”

There is a massive industry of loans that Fannie Mae will not purchase from banks. So this space is dominated by private lenders that are not banks and they have a more expensive cost of capital. PeerStreet has created a true secondary market addressing this sector where a market did not exist before. Fundamentally, it is lot easier to add lenders than to go after that many new borrowers. Trying to double and triple in size while going after borrowers is extremely difficult.

So how big is this market?

Hundreds of billions annually. Crosby says that in the space they target they estimate the total addressable market to be around $185 billion annually. Short term, fix and flip, and buy to rent market.

Up until last summer, PeerStreet was primarily a retail customer investing platform. Increasingly they have seen a wave of demand from both individuals and institutional money. The number of institutions is increasing and fueling growth. Typically these investors are hedge funds and foundations.

“We have been thoughtful as to how we are doing this [adding institutions]. We do not want to do this in a way that negatively impacts individual investors. Our lenders want as much diversified capital as possible.”

Their approach has also engendered a network effect as they are experiencing more demand as lenders learn from their neighbors and peers.

PeerStreet is doing small business purpose loans, some multi-family and mixed-used properties. The largest loan size is around $5 million but there can be exceptions. The rate of return for investors during 2017 stood, on average, at 8% net of fees. As for defaults, so far only five loans have gone through the full foreclosure process but they have not experienced any loss of principle – a positive metric.

The crux of the business is to scale while maintaining quality says Crosby.  That, plus operational efficiency on the underwriting size.

So is PeerStreet profitable? Not quite yet, but they are right-sizing their platform to scale.

“This is kind of like building an airport. You need to build it first. These things can be massive businesses. We are building this like Amazon. We are trying to provide value to all parts of the ecosystem,” Crosby explained.

The enterprise value of PeerStreet is continuing to grow and it is management’s plan is to keep building this business and perhaps, eventually, take the company public.

“You want to do it thoughtfully. It is good for credibility. We plan to build this for the long term. If we end up getting acquired along the way, that could certainly happen to us, but that is not in the plan.”

Asked if they would consider an international expansion, Crosby says the mortgage finance industry in the US is huge – multi-trillions of dollars. While expanding outside the boundaries of the US may not be in the works today, it is certainly something they have considered on the investor side.

“Just in the US there is plenty of work to be done. That said, there is a lot of capital that would like to access these assets. We do see an opportunity to expand internationally to allow international investors to access these assets.”

As for incorporating blockchain into their platform, PeerStreet is very aware of the possibilities but there is nothing on the horizon as of yet.

Beyond executing on an effective real estate crowdfunding marketplace driving value for both investor and borrower, there is a social benefit that comes along with this segment of real estate. The PeerStreet model allows for more qualified borrowers to access capital and improve their local communities, one house at a time;

“These lenders are making loans to borrowers who are going out and improving the neighborhood. You do this 20 or 30 times or more and it improves the whole community. The impact is palpable. These guys are really proud. This is kind of capitalism done right,” added Crosby. “A lot of people benefit from this when it is done right. I am really proud of this. This is more than just investing in a loan it is investing in the community.”

[easy-tweet tweet=”These lenders are making loans to borrowers who are going out and improving the neighborhood. You do this 20 or 30 times or more and it improves the whole community. The impact is palpable” template=”light”]

PeerStreet Secures $29.5 Million Through Series B Funding Round to Further Transform Real Estate Investing

PeerStreet, an online platform for investing in real estate backed loans, announced on Friday it secured $29.5 million through its Series B funding round to further transform real estate investing. The round was led by World Innovation Lab. with participation from existing investors Andreessen Horowitz, Thomvest, Colchis Capital, Felicis Ventures, and others participated and new investors, Solon Mack and Navitas Capital. 

PeerStreet reported that the Series B follows another year of high growth. The platform notably more than doubled volume from the previous year and is on track to continue that growth trajectory. PeerStreet noted it is now integrated with three prominent personal finance platforms including WealthFront, Betterment, and Personal Capital. It has also significantly enhanced its suite of tools and analytics for lenders over the past year and released an innovative short-term investment product for investors seeking greater liquidity. Steve Pretre, Venture Partner at World Innovation Lab, who will be joining PeerStreet’s board, stated:

“We believe PeerStreet’s approach of partnering with local, private real estate lenders is the optimal solution to create new liquidity for the existing real estate finance ecosystem. This approach lowers the marketplace cost for loan acquisition, and, most importantly, taps into the lenders’ unique knowledge of local markets and borrowers. This directly benefits investors by lowering both marketplace costs and loan risk. The result is a more efficient and effective marketplace for all parties.”

Brew Johnson, CEO and Co-Founder of PeerStreet, also commented:

“We’re incredibly excited to add World Innovation Lab to our growing list of remarkable investors. This investment validates our mission and will enable us to continue our growth with the goal of re-shaping real estate finance for the better.”

 Brett Crosby, COO and Co-Founder of PeerStreet, then added:

“We’re using the transformative potential of technology to help people access investments in real estate debt in a way never done before. At the same time, our model helps lenders get more capital to deserving borrowers who are directly improving the aging US housing stock and building up communities.”

Funds from the Series B funding round will be used to accelerate PeerStreet’s growth. Specifically, the platform will be broadening the type of real estate loans it cultivates from its network of lenders and hiring more world-class talent.

PeerStreet Announces New Investment Product “30-Day Notes”  

On Wednesday, PeerStreet announced the launch of its new investment product, 30-Day Note, to provide increased liquidity for accredited investors at 30-day terms. According to the online lender, the 30-Day Notes product was launched quietly in October as a pilot program, is now offered monthly. It provides investors with more liquidity by allowing them to invest in notes with 30-day terms.

“[Investors] can put short-term cash to work in real estate backed loan investments in a completely new way. Like all PeerStreet investments, these notes are vetted for quality by PeerStreet’s proprietary software and a team of real estate professionals before they are offered to investors.”

PeerStreet also reported that since it first launched this product, the average amount invested in a 30-Day Note per investor has more than doubled. The lender plans to continue growing and iterating on the program. While sharing more details about the feature, Brew Johnson, Co-Founder and CEO of PeerStreet, stated:

“As a former real estate attorney, I’ve always loved this asset class. I’ve long believed that a platform like PeerStreet would allow people to not only diversify their investments across real estate backed loans but also change how people invest in these loans. We’ve created an ideal platform for innovation in this space. This industry needs a spark of more creative models for investing. We are making this asset class more accessible, which benefits not only the end investor but lenders and borrowers, too.”

Brett Crosby, Co-Founder and COO of PeerStreet, also commented:

“Having spent ten years at Google working with incredibly smart people innovating in the tech space, I’ve always thought we could apply that to other industries that are equally ripe for improvement. As we apply both technology and the tech approaches that I learned at Google to the mortgage finance space, the entire industry can benefit.”

PeerStreet then added it offers 30-Day Notes to all accredited investors on the platform, which provides investors with an easy and transparent way to retain liquidity.

PeerStreet’s Brew Johnson Named 2017 HousingWire Vanguard Award Winner

PeerStreet, a marketplace for investing in real estate backed loans, is honored to announce that its Co-Founder and CEO, Brew Johnson, has been named to HousingWire’s 2017 list of Vanguard Award winners. HousingWire’s 2017 Vanguard Award reportedly recognizes top leaders from all areas of the mortgage industry, including those in lending, real estate and investing.

Brew Johnson founded PeerStreet alongside COO, Brett Crosby. In his role as CEO, the lending platform revealed that Johnson plays a critical role in driving the direction of the company and its commitment to democratizing access to real estate debt as an asset class for investors. It was also noted that Johnson has a long history in the real estate and tech industries, having begun his career as a real estate attorney, advising some of the largest real estate development and investment firms in the country.

Crosby stated:

“Brew is one of the brightest minds in FinTech. His passion for his work and deep understanding of the industry is unparalleled. I am extremely lucky to have him as a friend and partner in our work to offer investors quality real estate loan investments, and to create a more accessible and robust secondary market for real estate backed loans.”

The HousingWire Vanguard Award winners are notably chosen for their deep expertise across a wide range of functions within the housing industry, but all with a shared common trait: the ability to lead, motivate and rally their employees. All are outstanding leaders who utilize their resources to solve problems, create solutions and drive innovation in their respective areas in the industry.

The award announcement comes just a couple weeks after PeerStreet launched its innovative and industry lender tools, powered by HouseCanary Data.