August 18, 2021

Announcing an Important Security Launch for PeerStreet Investors: Two-Factor Authentication. 

Two-factor authentication is an easy and effective way to increase security for our customers. The idea is simple. When you log-in to your PeerStreet account you will receive a code via text message or from an authentication app (like Google Authenticator for iPhone or Android), and you will be asked to enter that code prior to gaining access.

The steps to turn on two-factor authentication are easy: log-in to your PeerStreet account as you always have, go to “My Account” in the top right corner, under “Security” you’ll see “Two-Factor Authentication.” Click the “Edit” button to the right. Once inside your two-factor authentication page, enter your cell phone number or scan the barcode for the authentication app. From there you will be sent a verification code and you can turn on two-factor authentication. You’ll know it has been processed because a green “on” button will appear next to the title of your screen along with telling you what authentication method you have chosen.


PeerStreet employs high security controls to protect your data, but as the web gets more complicated, there are many ways a password can be cracked, stolen or otherwise hacked. For example, if your PeerStreet password is used anywhere else on the internet (which ideally it would not be), it’s possible that it may become compromised. With two-factor authentication you are significantly better protected in any of these scenarios. 

We value your business and your protection is paramount. While it is currently not compulsory to do so, we are strongly encouraging investors to opt-in.

As an interesting side note, this feature was first developed as part of our annual PeerStreet Hackathon. Our product and engineering teams ran with it and we’re all very happy to see it launch today.


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August 16, 2021

Head of Loan Products, Tom Hallock

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Editor’s note: this post is part of an ongoing series highlighting some of our recent new-hires who are having an outsized impact on our business. We’re incredibly proud of the team we have and excited to introduce you to some of our new people and the work they do.

As a company, we’re excited about where we’ve been and even moreso about where we’re headed. So let us introduce you to some of our new leaders who will help shepherd us into the future. Oh and if you want to work with these impressive people, we're hiring!

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What is your role at PeerStreet? 

My primary role at PeerStreet is to expand PeerStreet’s lending products while building out an exceptional leadership team for our business lines. Additionally, as Head of Loan Products I work closely with our Product, Capital Markets, and FinOps teams focused on our loan profitability and performance.

What did you do prior to PeerStreet?

Prior to joining PeerStreet I was the Chief Lending Officer for Genesis Capital. Most of my career has been focused in the real estate and real estate lending industry. I started my career in community banking in Santa Barbara at Montecito Bank and Trust. From there I became Director of Construction Lending at Countrywide Home Loans and built out their One-Time-Close single family construction loan program. I then pivoted back into commercial lending at Indy Mac, Affinity Bank and then back to Countrywide Bank specializing in Home Builder Construction products. During the Great Recession, I started a consulting group that partnered with a construction platform and we contracted with the FDIC to manage their construction risk associated with failed banks. In 2011 I joined American Homes 4 Rent and led a number of different groups for them including the start-up of AMIP, their non-performing note buying and management platform. 


What do you think makes PeerStreet unique?

PeerStreet's vision on how to create a private lending marketplace through technology is so inspiring.  

What are your favorite parts of the PeerStreet culture summarized in three words?

People, passion, teamwork

What is the most rewarding part of your job?

Innovation and creativity. I love taking something, breaking it apart, and seeing how we can put it back together so it works faster, better and more profitably. 

How do you spend your time when you are not at work? 

I really love to hang out with my best friend, my wife, Allison. She and I spend a lot of time focused on our family and making sure we are building a great relationship with each other and our children. 

Define yourself in three words.

Positive, thoughtful, hopeful

Thanks Tom! And congratulations on your son’s incredible performance on the men’s US Olympic water polo team! 

If you’d like to join Tom and our team at PeerStreet, we’re hiring!



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August 11, 2021

PeerStreet Named Crowdfunding Platform of the Year, Wins the PropTech Breakthrough Award!

We are honored and humbled to announce that PeerStreet has been named the 2021 Crowdfunding Platform of the Year by the team at PropTech Breakthrough Awards. This PropTech Breakthrough Award is always a big honor to receive, but for 2021, it is even moreso. This accolade recognizes PeerStreet for its deep commitment to providing a quality customer experience for users of its platform after one of the most challenging years on record. 


Our team started 2020 on a strong footing, even eventually being crowned Lendit’s Best Real Estate Platform award for the 2020. But as the year began to unfold and got increasingly more complicated, our teams worked hard to navigate the challenging waters of 2020. Now we are re-emerging stronger than ever in 2021. And for that reason, this recognition is particularly meaningful.


2020 was a tough year for just about everyone and PeerStreet was no different. Aside from the obvious human costs associated with Covid-19, our ecosystem encountered challenges for borrowers and lenders, rising real estate prices in many places, and moratoriums on foreclosures. Borrowers found themselves facing work stoppages, supply chain shortages for construction materials, fewer workers, unavailable city inspectors for permits and other approvals, and rising costs of materials. 


On the other side of our marketplace, investors naturally wanted to see their loans serviced and paid on time; and if needed, foreclosed upon quickly, too. With federal moratoriums on evictions and foreclosures, many investors were asking how quickly their loans would get worked out. 


PeerStreet was able to grant borrowers extensions in many cases and the extra time made a big difference. As the world learned to operate through a pandemic and housing prices broadly increased, many projects that had stalled were able to be completed and even turned a profit. That benefited not only borrowers, but also investors. 


As we’re two thirds the way through 2021, being recognized as the year’s crowdfunding platform of the year is a huge honor. We’re grateful and humbled. We’re proud that we’ve made progress in a very challenging time, but we also know there’s still a ton of work left to be done. 


It’s worth noting that we have won PropTech Breakthrough Awards for other accomplishments in the past, but this is our first time being named their crowdfunding platform of the year. And with a third of 2021 still left to go, we have many more ambitions. We’re looking to improve our platform for investors, lenders, borrowers and our employees.


We’d like to offer a sincere thank you to all who have taken this journey with us, and to everyone who continues to join... Welcome and thank you!


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August 5, 2021

Meet our new hires: Lead Technical Program Manager, Anupama Gunupudi

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Editor’s note: Today we’re launching a new blog post series highlighting some of our recent new-hires who are having an outsized impact on our business. We’re incredibly proud of the team we have and excited to highlight some of our new people and the work they do. 

As a company, we’re excited about where we’ve been, but even more excited about where we’re headed. So let us introduce you to some of our new leaders who will help shepherd us into the future. Oh and if you want to work with these impressive people, we're hiring!

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What is your role at PeerStreet? 

As a program manager, my role is to get teams to be running like a well oiled machine by implementing processes and improving efficiency for cross-functional collaboration, ensuring that teams are working on the right priorities, and turn the company vision into a tactical and executable plan to provide high quality products for our customers. A program manager touches every aspect of the organization and we try to provide an unbiased and objective approach to every obstacle that comes along our path. The TPM needs information in order to have a birds-eye view of what is going on to make sure the puzzle pieces are being put in the right place. 

What did you do prior to PeerStreet?

I started my career at Raytheon as a systems engineer on the software development platform for F/A-18 and F-15 radar systems, working my way up to Lead System Engineer and Integrated Product Technical Lead (a combined role of tech lead, product manager and project manager). I was also a graduate of the Raytheon Leadership Development Program, an intensive 2 year executive program with training sessions around the country. I moved into program management while at Raytheon for both R&D and production on radar systems. After 9 years there, I took a leap of faith and went to DAQRI, an augmented reality company where I was the lead technical program manager from initial concept through design, development, production, product launch at CES (Consumer Electronics Show) and the delivery to customers for the DAQRI Smart Glasses and the DAQRI Smart Helmet. After DAQRI, I went to a seed funded AR startup, Camera IQ, where we built a SaaS platform for managing AR Experiences (such as Snap and IG filters). 

I took a 10 month sabbatical traveling to Japan, India and Spain, spent time with family and rejuvenated from the daily grind. After the reboot, I joined an artificial intelligence company, Beyond Limits, where I was the program manager for the autonomous robotics program as well as the Beyond Limits-Caltech partnership for the output of cutting edge research in AI/ML (artificial intelligence/machine learning) to bring into future products.

What do you think makes PeerStreet unique?

Definitely the drive for innovation and the incredible work culture! It is refreshing to be at a company where teams are collaborative and everyone is willing to be creative. Creativity is not just coming up with the next big idea but even something as small as automating a simple task can be a creative approach to improving efficiency. Everyone at PeerStreet tries to find ways to be creative and efficient and that’s really what brings cool ideas to fruition.

What are your favorite parts of the PeerStreet culture summarized in three words?

Respectful, collaborative and creative!

What is the most rewarding part of your job?

Working with really smart people here and seeing the success of various projects around the org. It is exciting to me when things are coming together, communication is flowing and the growth is visible around the company.

How do you spend your time when you are not at work?

I love to travel and explore new cities but also love the beach and exploring locally, even in LA where I have now lived for 12 years (p.s. I love rooftops!). I am an Indian classical dancer and also play Indian classical music on violin. These days I mainly work on house projects-- most recently I started a bit of woodworking and now have a much better understanding as to why wooden furniture is expensive. I also love solving the NYTimes Crossword.

Define yourself in three words.

Driven, outgoing, efficient.

Thanks Anupama, welcome aboard! If you'd like to join us, we're hiring.


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August 4, 2021

Getting the Word Out, Think Realty Covers E.N.U.F.

Think Realty, the real estate focused magazine, recently wrote about PeerStreet’s Evolving Neighborhood Uplift Fund, “E.N.U.F.”. The piece highlights the purpose behind E.N.U.F., which is to create a more purposeful and sustainable way to invest in real estate entrepreneurs from underserved communities across the country. 



The piece includes quotes from Ashley Flucas, General Partner of Flucas Ventures and a founding advisor to the E.N.U.F. project; Edward Wang, Director of Corporate Social Impact, at the Tides Foundation; as well as from our CEO, Brew Johnson.


It also encourages entrepreneurs to apply to the program and lists the qualifications. Applicants will be reviewed by the E.N.U.F. Advisory Board on a number of criteria, including:


  • Demonstrate a passion for real estate investing and community improvement
  • Be a member of an underserved community
  • Have real estate experience or some college experience. Some examples include successfully completing one or more fix and flips, managing one or more rental properties, working with real estate investors, brokers or lenders, completing real estate classes/courses or real estate educational training, etc.


You can learn more about E.N.U.F., donate to the program and even apply to become a mentor or mentee at PeerStreet.com/enuf.


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August 2, 2021

PeerStreet's Q2 Loan Performance

We are coming out of a period that has impacted every aspect of our lives – from the way we interact with family to our investments across all asset classes. We hope that everyone reading this has been safe and healthy in their personal lives. 

Throughout the pandemic, we maintained our commitment of transparency and honesty to our current and future investors. We have always believed that by providing insight into loan performance, we can better help you capitalize on the opportunities available on our platform. The better off our stakeholders are, the better our marketplace will be. 

With that in mind, we are excited to provide you with updated historical and current loan performance data. As a reminder, historical results may not be indicative of future performance, and the information contained in this post is provided for informational purposes and is not investment advice.

Key Definitions

Default: A loan is labelled as being in “Default” when PeerStreet files the foreclosure complaint or notice of default. Foreclosure timelines vary from State to State.  

Delinquent: PeerStreet classifies a loan as ‘delinquent’ when it is 60 or more days late (Late 60+).

Foreclosure: The action of enforcing the lender’s rights under the loan documents, and potentially taking possession of the underlying property, when the borrower fails to timely make its payments. Once the foreclosure process starts, the most common outcomes are either: (i) loan reinstatement or pay off before the property is foreclosed on or (ii) PeerStreet taking ownership of the property at auction resulting in an "REO". Properties taken over as REO are typically then marketed to be sold.

Judicial Foreclosures: Foreclosures that are carried out via the filing of civil complaints in state courts. These foreclosure actions are procedurally similar to other civil lawsuits and must follow the processes, timelines, and procedures of the corresponding courthouses. Judicial foreclosure states include New Jersey, New York, and Florida, to name a few.

Non-Judicial Foreclosures: Foreclosures that are carried out outside of the ordinary court systems. Upon default, in jurisdictions that allow non-judicial foreclosures, lenders can typically instruct a third-party trustee to schedule a foreclosure auction without getting a court order. Non-Judicial foreclosure states include California and Texas.

Performing Loan: A loan that is current on payments.

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Loans in foreclosure continue to payoff 

The economy has reopened, and many moratoriums on foreclosures and evictions have lifted. We have seen real estate prices rise and are continuing to return investor capital.

Note: Loans shown here are limited to residential bridge loans that were referred to a foreclosure attorney between April 2020 and June 2021. This may vary from other exhibits that look at all loans, since PeerStreet’s inception, for which a notice of default or foreclosure complaint were filed.

1. Of the 673 loans referred to foreclosure since April 2020, 322 (48%) have paid off. Payoffs have accelerated due to the lifting of foreclosure and eviction moratoriums and rising real estate prices, which provide attractive exits for distressed borrowers who were delinquent or late on their payments. 

2. While PeerStreet does sometimes need to work through the foreclosure process to return cash to investors, we also work to negotiate outside of the legal process in the hopes of achieving better and faster resolutions. Foreclosures take time and finding solutions without going through that process can help us return capital to investors in a more timely manner.

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Non-judicial foreclosures had an early start, but judicial foreclosures are catching up

We strive to return our investors’ capital in a timely manner, but different jurisdictions have different foreclosure timelines. Non-judicial foreclosure states typically have shorter timelines for foreclosure and thus, in general, saw more resolutions early into the pandemic. Over the last few months, however, court backlogs in judicial foreclosure states began improving and the payoff rates in these states have improved.

Note: Loans shown here are limited to residential bridge loans that were referred to a foreclosure attorney between April 2020 and June 2021. This may vary from other exhibits that look at all loans, since PeerStreet’s inception, for which a notice of default or foreclosure complaint were filed.

1. At the start of the pandemic, judicial foreclosures were at a standstill while many American court systems were indefinitely closed and/or backlogged. In states like California, which do not rely on a judicial process to carry out foreclosures, we saw early success in resolving defaulted loans.

2. 56% of properties that were referred to foreclosure between April 2020 and June 2021 were located in non-judicial states. While non-judicial markets have been leading the trend in recent payoffs, resolutions in judicial states have begun to pick up as well. As moratoriums expire and real estate prices continue to rise, outcomes in judicial foreclosure states have also improved. The S&P/Case-Shiller Home Price Index has gained 15% year-over-year in these markets.

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Historically, resolutions have looked similar across judicial and non-judicial markets

Thanks to continuing efforts to negotiate resolutions while legal proceedings are ongoing, foreclosures in judicial and non-judicial markets generally resolve over the same amount of time. The moratoriums on foreclosures have slowed the pace of resolutions over the last year, but recent trends are looking more optimistic.

Note: Loans shown here are limited to residential bridge loans that were referred to a foreclosure attorney between April 2020 and June 2021. This may vary from other exhibits that look at all loans, since PeerStreet’s inception, for which a notice of default or foreclosure complaint were filed.
Note: Loans shown here are limited to residential bridge loans that were referred to a foreclosure attorney between April 2020 and June 2021. This may vary from other exhibits that look at all loans, since PeerStreet’s inception, for which a notice of default or foreclosure complaint were filed.

Note: Loans shown here are limited to residential bridge loans that were referred to a foreclosure attorney between April 2020 and June 2021. This may vary from other exhibits that look at all loans, since PeerStreet’s inception, for which a notice of default or foreclosure complaint were filed.

1. Historically, the resolution timeline has not materially varied between judicial and non-judicial markets. This is because 85% of loans that enter foreclosure are worked out without needing to complete the foreclosure process.

2. 50% of loans referred to foreclosure have historically been resolved within 5 months of the original maturity date. We have seen this timeline extended over the past several months due to court closures and moratoriums, but as the foreclosure process gets back to normal and real estate transactions continue to pick up, foreclosure timelines are expected to contract.

3. Many loans contain default interest provisions, which increase the interest rate owed by borrowers when defaults occur. For this reason, investors are often compensated for the extended timeline of defaulted loans, earning a median historical annualized return premium of 30 to 40 bps above the expected investor rate. (See the light blue bar above).

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As more defaulted loans pay off, we continue to see few losses to investors

Loans that go into foreclosure remain a minority and, given the nature of these asset backed investments, equity cushions have buffered portfolio-wide losses.

1. Of the 7,614 loans that paid off or were liquidated as of June 30, 2021, only 335 (4.40%) went into foreclosure. Of those 335 defaulted loans, 29 loans suffered a principal loss – that’s 0.3% of all paid off or liquidated loans. The median loss of those 29 loans was -8.4%. 

2. The median return on all loans that went into foreclosure was 8.2%, with 50% of the 286 loans that went into foreclosure returning at least 0.4% higher than the original expected rate.

3. Foreclosure outcomes are a confluence of many factors including the housing market, foreclosure procedures, idiosyncratic borrower and property details, and loan leverage. For this reason, future outcomes may differ from historical outcomes.

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Newly purchased loans continue to pay on time

As the economy hits its stride, we are seeing positive and promising trends toward better performing loans. There has been consistent growth on the platform of performing loans, while delinquency rates on recent purchases remain low and stagnant.

1. Loans purchased since September 2020 have performed better than historical averages. As of June 30, 2021 only 1 loan out of 790 loans purchased since that date was more than 2 months late on payment.

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DISCLAIMER: the data provided herein was generated from PeerStreet’s portfolio performance to date, may not be exhaustive or reflect market-wide trends, and is provided solely for informational purposes. Past performance is not an indicator or predictor of future performance. PeerStreet is not an investment adviser and nothing contained herein is, or should be construed as, investment advice. Investors should not rely on PeerStreet to make investment decisions and should independently evaluate the risks and merits of any investment opportunity themselves or in consultation with their own professional advisors.

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July 20, 2021

PeerStreet’s Plans to Foster a Hybrid Workforce

Our CEO, Brew Johnson, was recently quoted in a post written by Andreessen Horowitz about the future of work; in the office and remotely. 


The crux of the article talks about how COVID changed the way we all work and how we have approached hiring during the pandemic. We all were reminded that distributed teams working remotely can be effective. Some people prefer it, while others can’t wait to return to the office. Some companies are going fully remote, others going back to the office, but most are embracing a new hybrid model in at least some capacity. 


At PeerStreet, we’ve been hiring remote team members all along, but it certainly accelerated over the past year. We are actively planning to be a remote friendly company for the foreseeable future. We’ve found we have been able to enhance our talent pool with fewer location based restrictions. There are trade-offs of course, such as fewer hallway conversations and impromptu brainstorm sessions, but we’ve been learning to do those things in other ways and find new ways to foster the culture we hold dear. 


When Brew was asked, “Do you think your company can be as innovative and creative in a remote or hybrid work environment?”, his answer considered some of the most significant pros and cons: 


No, but it’s not an apples to apples comparison because the hiring pool and talent are different. Being in person is much better for innovation and problem solving, but the fact is, on average, we are attracting much higher quality talent now that we are remote. The up leveling in the talent pool may allow us to be more innovative going forward.” -Brew Johnson, CEO at PeerStreet


Whatever the future brings, it is clear that remote working for at least some portion of the workforce is here to stay. That goes for many companies, including PeerStreet.


You can see the full results of portfolio CEOs surveyed by Andreessen Horowitz here.


We’re hiring for a number of roles. If you would like to join us, remotely or in office, please visit our careers page.


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July 8, 2021

PeerStreet Hackathon!

We recently hosted an internal event called “HackStreet”, our second company-wide hackathon designed to spawn innovation from all corners of the company. To inspire employees, none other than Chris Diamantopoulos, who plays Russ Hanneman on HBO’s Silicon Valley, made an appearance to encourage participants (watch the video)

Chris Diamantopoulos (Russ Hanneman on HBO’s Silicon Valley) inspired our team.

This year’s HackStreet was another successful hackathon in which many innovative ideas were developed, some will even be launched to our customers in the near future. Ideas ranged from improving internal processes, building adjacent tools for lenders and adding features for retail customers. A few of the ideas were even “code-complete” and are ready to ship. We’re grateful to all employees who participated, including our illustrious judging panel and our fantastic Lead UX Designer, Brian Stieler, who did an amazing job emceeing the awards ceremony in multiple characters and accents!


Lead UX Designer, Brian Stieler, in character.

Lead UX Designer, Brian Stieler, in character as another character!

Our annual hackathon has become a tradition that allows people throughout the company to stretch our collective thinking and develop new and interesting directions for the company. This aligns with our cultural value that good ideas can come from anywhere. It is a principle applied throughout the year, but perhaps never so strongly as during our hackathon. It brings out the creativity, imagination and fun we aim to foster within our team at PeerStreet.


We’re hiring, so if you would like to be a part of the company transforming the mortgage finance space, see our careers page.


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July 6, 2021

PeerStreet Named one of the 2021 Best Places to Work in Financial Technology

We’re thrilled to announce that PeerStreet has been named one of the “2021 Best Places to Work in Financial Technology”. This award is voted on by our own team members who fill out a survey sent directly to them by “Best Companies Group”. The survey is anonymous and tallied by a third party, so the results remain as unbiased as possible. The questions range from vision to execution, leadership and culture.


PeerStreet has won numerous accolades for both technology and culture, including “Best Real Estate Platform” in 2020 by LendIt and “Deloitte’s Fast 500” for the second year in a row. Indeed, we have won this award in the past, too, and it is always gratifying to be recognized by our own team members for the company culture we have created together. 



These awards reflect our incredible team and all of their hard work to support PeerStreet’s mission; to make real estate investing work better for everyone. Our marketplace is designed to align the interest of all participants-borrower, lenders, digital investors and the local communities. To do this, we’ve worked hard to cultivate a workplace culture that focuses on collaboration to introduce new innovation to the world of real estate investing. We are incredibly proud of the PeerStreet team and these accolades are recognition of the commitment we have to building great workplace culture.

  

If you’d like to join us on our journey, please visit our careers page, we’re hiring both locally and remotely for several key areas of our business.


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March 5, 2021

Investor Spotlight: Jordan Wyckoff

Welcome to a new series on PeerStreet’s blog - the Investor Spotlight series, where we’ll be featuring long time investors on PeerStreet’s platform. With the series, our hope is that you’ll be able to meet like-minded investors, be inspired by their experiences, and learn from their lessons. If you’re interested in participating in this series - email us! 

Meet Jordan Wyckoff

 

Jordan is a 36 year-old living in Brooklyn, New York, with his girlfriend and beloved English bulldog (@sirwinstonofparkslope). Physical health and sports has always been his career focus, having worked as a baseball coach upon graduating college, and then as a scout for a Missouri baseball team. Today, he’s Director of Bike Operations & Logistics at a millennial-favorite fitness company with very spirited instructors. 

Real Estate Investing Experience

What’s your experience with real estate in general?

I started getting serious about investing in 2015, mostly through index funds and my 401K, and in 2018 started dabbling in real estate investing. I came across PeerStreet early on and loved the concept, especially the ability to review deals on an individual level. Since then, I’ve diversified into other real estate platforms and types of real estate investments, including property tax lien investing.

What’s your investment style?

Generally speaking I like to be hands off when it comes to stocks and use apps like Wealthfront to simplify the process for myself, but when it comes to real estate, I’m super hands on. I like researching the properties and deep-diving into the deals. I find it fun to go through and do the homework and learn more about the tangible assets before investing.

What’s been your favorite real estate investment to date?

It was actually on PeerStreet! “Brooklyn refinance #37”. It’s a property down the street from where I live and I walk past it on my way to work every day. It’s a mixed use building, with a restaurant at the bottom floor and apartments above. I loved seeing the property evolve, starting from the for sale sign, and then it’s development, and I knew that every time I got paid by PeerStreet it was coming from them doing work on that property.

Who got you into investing, and what do you invest for?

My sister got me into investing, she’s financially savvy and told me to pay off debt to free up the ability to start making investments. It helped me turn a corner and I’ve been invested since. I re-invest everything that I make to set myself up for retirement.

Give us your top investing advice.

The sooner you start, the better, and automate as much as possible. Once you’ve picked an investing platform, set up auto-deposit and let it run in the background of your life so that you truly make the decision to invest and stick with it, rather than be faced with the decision to invest your money again and again. This really helped me during the pandemic, because even though things got tougher, I still stuck with it and kept up my contribution level, and now it’s paid off with the markets doing so well.

 

The opinions expressed in this article are the investor’s alone. The investor quoted in this piece was not paid to participate in this series. Investments that are adequate or satisfactory to one investor may not be to others. Nothing contained herein should be considered investment advice or an offer to buy or sell any securities.


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February 11, 2021

Insight into PeerStreet’s Loan Performance Q4 2020

PeerStreet has always believed the more transparent, educational, and honest we are as a company, the better off all stakeholders in our marketplace will be. To that effect, PeerStreet continually strives to provide investors with more historical and current data of its loan performance. 

This is Volume 2 of PeerStreet’s continued commitment to provide insight into loan performance. View our first blog post on historical loan performance to understand the trends we’ve seen from a longer horizon. 

Key Definitions: 

L-30, L-60, L-90, L-120 = This means a loan has not made a payment in 30 days, 60 days, etc. 

Delinquent = PeerStreet classifies a loan as ‘delinquent’ when it is 60 or more days late (Late 60+). 

Foreclosure = The action of enforcing the lender’s rights under the loan documents, and potentially taking possession of the underlying property, when the borrower fails to keep up their payments. Once the foreclosure process starts, the most common outcomes are either: (i) the loan is reinstated or pays off before the property is foreclosed on or (ii) PeerStreet takes ownership of the property at auction resulting in an "REO". Properties taken over as REO are typically then marketed to be sold.

Default = A loan is labelled as being in “Default” when PeerStreet commences the foreclosure process. Foreclosure timelines vary from state to state.  

REO = “Real Estate Owned,” we have taken ownership of the property, usually as a result of the foreclosure process, but we have not yet sold it. 

REO Sale = Sale of the property.

This report outlines the loan performance PeerStreet has seen historically, how that performance has been impacted by COVID-19 as well as an overview of the real estate markets as we move to a post-COVID era. It is worth noting that, due to the pandemic, certain qualifying borrowers were granted mortgage payment deferrals. Deferred loans are categorized as paid current in the data sets below.

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Foreclosure timelines have been extended due to COVID-19.


*Foreclosure timelines are estimates and will vary depending on a variety of factors such as moratorium extensions, judicial impediments, etc., as well as loan-specific factors. **Cook County, Illinois (Chicago metro area) has issued a foreclosure moratorium until further order of the Governor, which may extend timelines further.


  • The foreclosure process, and associated timeline, varies by market. Some markets, such as New York and New Jersey, settle foreclosures through the judicial system which typically takes longer, while others, such as California and Maryland, typically handle foreclosures outside of the courts. 
  • In reaction to COVID, many markets closed their court systems and issued moratoriums that prevented the filing of new foreclosures and halted the progress of foreclosures already in process. This stretched timelines out considerably, most notably so in New York.
  • Approximately half of PeerStreet’s defaulted loans are located in states with foreclosure moratoriums in place, delaying PeerStreet’s Asset Management team from working through loans in foreclosure.
  • As states begin to reopen the court systems and roll back foreclosure moratoriums, we are optimistic that timelines will return to pre-COVID levels once court backlogs are processed.

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As foreclosure referrals continue, loans in foreclosure are beginning to payoff.

*Foreclosure payoffs include only loans that were referred to foreclosure between April 2020 and December 2020.


  • As courts reopen, we are starting to see progress on loans referred to foreclosure since April. This is an important step not only because it allows PeerStreet’s asset management team to move loans through foreclosure, but also because it puts pressure on borrowers to work out a resolution outside of the foreclosure process.
  • A quarter of the payoffs have come from California. Resilient property values and a straightforward process, has largely allowed us to move loans through foreclosure smoothly.
  • Florida, one of our most active markets, reopened their court systems in late November. After working through a backlog of cases, the state has begun scheduling foreclosure hearings again.

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While some loans referred to foreclosure result in investor losses, the median return remains higher than the expected Investor Rate.

*Expected returns determined by investor rate and stated term of the loan. This data includes only loans (and REOs) that paid off by December 31, 2020 and excludes loans that are still outstanding, as the final return for outstanding loans has yet to be determined.


*Annualized returns are calculated based on distributions to investors. This data includes only loans (and REOs) that paid off by December 31, 2020 and excludes loans that are still outstanding, as the final return for outstanding loans has yet to be determined.


  • While foreclosures may delay loan payoffs and increase payment uncertainty, most loans that have entered foreclosure historically, have yielded positive returns to investors.
  • Returns vary for loans that go into foreclosure. Loans in foreclosure accrue default interest and other fees, which may increase returns to investors if collected. At times, however, decreases in property values, foreclosure expenses, and other factors can also lead to losses.
  • The equity cushion on loans, which is the difference between the appraised value of the property and the loan amount, can help insulate investors from losses. Things that can negatively impact that cushion are time to resolution, various costs that are absorbed by the loan investors (taxes, maintenance, selling commissions, legal). Real estate markets have generally held strong throughout the pandemic (with some exceptions), preserving equity in loan collateral.
  • Historically, the median return on foreclosure loans has been higher than the expected investor rate, while the average has been lower. This implies that many defaults end in positive gains for investors, while a few large losses have driven down average returns. Some foreclosures currently being worked out by the Asset Management team have been particularly affected by the events of 2020 and we anticipate the return profile on these projects to skew lower than the historical norm. 

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As performing loans have paid off and delinquencies have remained constant, active pre-COVID investments are increasingly delinquent. All loans purchased since July are current and performing.

*Late status buckets are discreet groupings based on month end loan status. Data includes all active loans serviced by PeerStreet within the reporting month through December 31, 2020. L-120+ includes all loans more than 120 days late with the exception of loans that have transitioned to REO.
*Data includes all active loans serviced by PeerStreet within the reporting month purchased between July 2020 and December 2020


  • PeerStreet closely monitored the impact of COVID-19 on the market and paused purchasing new loans in the Spring of 2020. Buying resumed in July and all loans purchased since have performed as expected.
  • Over the past 9+ months, payoffs of performing loans have outnumbered new loans funded through the platform. This, along with the inability to process foreclosures in states with foreclosure moratoriums, resulted in non-performing loans beginning to make up a larger percentage of the portfolio. These loans tend to take time to pay off as PeerStreet’s asset management team works through the foreclosure process.
  • New loan purchases provide investors an opportunity to reinvest proceeds back into performing loans. As of December 31, 2020, loans purchased since July have not missed a payment. 

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Diversification can be an important source of risk mitigation.

*Expected yields are the output of a downside scenario simulation modeled using the PeerStreet active portfolio as of March 31, 2020 to normalize for a decline in active loan volume since pausing loan purchases in March. The graph shows the range of outcomes between the 90th and 10th percentile of investor yields taken over the life of the portfolio. The model does not consider reinvestment of principal. 


  • As the number of loans in a portfolio increases, the range of expected returns will shrink. In a downturn scenario, like the one modeled above, diversification may be an effective risk mitigation strategy.
  • Our foreclosure portfolio has a negative skew (average return is less than the median) due to a few large losses offsetting mostly modest gains. As more loans are added to a portfolio, the impact of any large loss on total portfolio return is diminished.

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DISCLAIMER: the data provided herein was generated from PeerStreet’s portfolio performance to date, may not be exhaustive or reflect market-wide trends, and is provided solely for informational purposes. Past performance is not an indicator or predictor of future performance. PeerStreet is not an investment adviser and nothing contained herein is, or should be construed as, investment advice. Investors should not rely on PeerStreet to make investment decisions and should independently evaluate the risks and merits of any investment opportunity themselves or in consultation with their own professional advisors.
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January 25, 2021

PeerStreet Launches ‘Pocket’ — a New Way for Investors to Earn Interest on Available Cash 

Today we announced the launch of PeerStreet Pocket, a new investment product allowing investors to earn more interest on their cash. The waitlist for PeerStreet users opens today, with the first investors expected to get access soon. 

 

PeerStreet Pocket was created in response to investor feedback and requests for an alternative to low-yielding banking rates; it is more liquid than other PeerStreet investment products and not directly tied to any given loan. Pocket offers high-yielding interest and monthly liquidity, all with no minimum balances or fees. “We are thrilled to announce the launch of PeerStreet Pocket, which speaks directly to the needs of our investors who would like to make sure every dollar they have on the PeerStreet platform is working for them,” said Brett Crosby, Chief Customer Officer and Co-Founder of PeerStreet. 

 

Money that is invested in Pocket may be used to warehouse loans before they are sold to investors on the PeerStreet marketplace. Historically, traditional banks and financial institutions have been the source of warehouse capital. Now, through Pocket, accredited investors are able to fulfill this function, further leveling the playing field between Wall Street and Main Street. 


“PeerStreet is highly focused on innovation and bringing new products to market that create long-term value for our customers. Pocket is a direct response to our customers' request for a liquid, interest yielding alternative to holding cash. This is the next step in our evolution to providing a holistic investment experience on our platform.” said Jeremy Guttenplan, VP of Product at PeerStreet.


PeerStreet Pocket accounts are available to accredited PeerStreet investors, with as little as a $1,000 initial deposit. Investors are able to withdraw funds from this account once a month, which can then be used to invest in PeerStreet’s individual loans or fund offering. PeerStreet Pocket is only available to accredited investors that are signed up for the platform.

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November 24, 2020

About Pimlico Capital

Victor Lipnitsky and Aron Yehuda had a shared vision of making capital more accessible to local real estate investors. This mission led them to start their real estate business, Pimlico Capital, in Baltimore in 2016. They recognized the need to provide short-term financing for investors and succeeded in making funding accessible and affordable to investors with and without experience.

A focus on borrowers and Baltimore

They  began  in  2016  with  two  core  clients  that  ultimately  led  them  to  their  success.  They attribute this success to two main principles: first, bring a personalized approach to customer relationships, and second, remain focused primarily on the city of Baltimore to grow a strong network of borrowers in this area.

The founders saw this strategy to be working after about 12 months and having the opportunity to work with many investors who are native to the Baltimore area. “One of the things I am most proud of is how our business has been able to focus on communities that can benefit from revitalization,” Aron said. Pimlico is proud to work together with capital partners like PeerStreet. This has enabled them to contribute to transforming neighborhoods in the heart of Baltimore City, surrounding Baltimore County, nearby Washington, DC, Philadelphia, and various other locations by providing competitive financing for real estate investment projects. Their five-star Google  reviews are a testament to the success of the relationships Pimlico Capital builds with their clients.

Pimlico Capital partners with PeerStreet

Pimlico Capital was introduced to PeerStreet in the fall of 2019. After diving into an analysis of what a successful relationship between the two companies might look like, Victor and Aron flew out to California for an in-person meeting with PeerStreet’s management team. From there, a successful business relationship was born, with Pimlico Capital brokering long-term loans to be funded through the PeerStreet marketplace.

While Victor and Aron did evaluate other potential partners, there were several factors that led them to ultimately pursue collaboration with PeerStreet. Pimlico Capital considers itself a technology firm specializing in the real estate space. “I was impressed with the robustness and sophistication of the technology platform used by PeerStreet to do business with its brokers,” Aron said. “PeerStreet is dedicated to providing superb customer service to borrowers, which is a mindset at the core of Pimlico Capital’s business.”

This new partnership provided the opportunity for Pimlico Capital to offer a 30-year rental loan  product.  Pimlico  Capital  saw  an  immediate  spike  in  demand, resulting in the growth of their rental business from $4M in 2019 to $25M in 2020 and the need to hire additional staff to accommodate the product’s popularity. Pimlico Capital looks forward to continuing to partner with PeerStreet and its borrowers to make capital for real estate investment both accessible and affordable. Pimlico Capital is proud of the role it has played in the revitalization of city blocks and knows it is just getting started. To date, Pimlico Capital has provided $45M in capital for properties in Baltimore City.

View Pimlico Capital for more information.

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November 19, 2020

PeerStreet has been included in Deloitte’s Technology Fast 500 for the second year in a row

PeerStreet has again been included in Deloitte's prestigious Technology Fast 500 list. This is our second year in a row to receive this honor and comes on the heels of PeerStreet winning Lendit’s Top Real Estate Platform award just a few weeks back. Earlier this year, PeerStreet was also named among Forbes’ Best Startup Employers for 2020, recognized for our “Best Tech Work Culture”, and our CEO, Brew Johnson, was a finalist for the EY Entrepreneur of the Year Award.


The Deloitte Fast 500 is unique in that it recognizes the growth of companies across a variety of industries. The ranking is based on fiscal-year revenue growth over the previous three years; PeerStreet’s growth landed us at 89th place, breaking into the top 100.


As of November, PeerStreet has achieved $3.9 billion in loans sold, $2.5 billion in principal returned to investors and over $200 million in interest payments. That money is creating real value not only for our thousands of investors, but also for the communities that are improved by borrowers who use that capital to upgrade properties and neighborhoods.


We congratulate all of the other firms on the list, and want to thank all of our investors, lenders, and partners for your continued support.


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November 5, 2020

LendIt Crowns PeerStreet “Best Real Estate Platform”

We’re excited to share that LendIt, one of the largest media and events companies for FinTech, has named PeerStreet the “Best Real Estate Platform” at this year’s awards ceremony. The ceremony, which is typically accompanied by a dinner at the LendIt conference and attended by the LendIt community was virtual this year, but the honors were real.


Having won “Top Emerging Real Estate Platform” in 2017, we are so proud to have now won the top real estate category just a few short years later. This is one of the most prestigious awards a company can win in our space and this highlights our unwavering commitment to our mission to democratize real-estate debt through technology. 

 

Each award received and milestone met is meaningful to PeerStreet, but as an active participant in the LendIt community since our platform launched in 2014 this feels extra momentous. We’ve attended numerous LendIt trade shows, spoken on panels and attended many sessions and events associated with their conferences. This year, we were also active in the virtual events through Brett Crosby, our co-founder, appearing on a panel discussing why direct real estate investing continues to attract capital. In this panel, he spoke alongside leading voices in the real estate space, including executives at Lending Home and Sharestates. This session was an example of how the LendIt community has prompted industry discussions that continue to inspire us and contribute to how we grow and innovate our business.

 

This latest win is also only one of the several industry recognitions PeerStreet has had this year, including being named a finalist for Los Angeles Best Tech Work Culture in the annual Timmy’s Awards, and being named in this year’s CBInsights Fintech 250. We would like to thank the judges, the people behind LendIt (including Peter Renton) and all of our customers, investors, lenders and business partners who continue to believe in and support our mission.


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