When we celebrate an anniversary at PeerStreet, we do so with a focus on the people who matter most: our customers. Without you, our mission to transform the mortgage finance industry couldn’t get off the ground. Since we launched our platform to the public at the Money 20/20 conference on October 30, 2015, we’ve grown our company—and our marketplace—significantly. So much so that for the second year in a row, we’ve been included in CB Insights Fintech 250, which celebrates the fastest-growing FinTech startups. Thanks to lenders and investors like you, it’s safe to say our mission is off the ground. We now have 160 employees—more than double where we were this time last year—and our platform has expanded its reach to more than 40 states, hundreds of lenders, and thousands of investors, including individuals and world-class institutions. We’re funding more than $100 million of loans per month through the marketplace, and have had over $1.5 billion invested through the PeerStreet marketplace to date. We’re proud of this progress, but we’re equally proud of one area we’ve stayed exactly the same: Our employees are still really happy. We know that to develop and maintain a quality marketplace, we need a team of smart, driven, talented people who want to do good work for our customers. To that end, we were just named a winner for Best Company Happiness from Comparably, ranking us in the top 25 small/mid-sized companies in the country for employee happiness at work—a ranking based entirely on employees’ own self-reported, anonymous ratings. We also recently won several other 2018 Comparably awards, including Best Company Leadership, Best Company Managers, Best CEOs for Diversity, Best CEOs for Women, Best Companies for Compensation, and were crowned a top 25 company to work for in Los Angeles. To continue being the platform our customers want and need, we know there’s more work for us to do—and we’re well on our way. We’ve already transitioned from a single-asset class to multiple assets, including Single Family Residential (SFR), Multifamily, Small Balance Commercial, and Cash Offer Loans. These are the moves that will enable even more growth opportunities for our entire ecosystem, from investors, lenders, and borrowers, to communities as a whole.
With investors and lenders like you as partners, we’re looking forward to seeing what we can accomplish in our fourth year—we’ve already got a number of exciting updates and news in the pipeline. We’re grateful for your continued feedback and support, and we’re always interested in hearing from you on how we can continue to improve. So if you have any suggestions or questions, don’t hesitate to reach out to us at [email protected].
PeerStreet was recently covered by CNN in their Money Moves column with a piece that posed the question on a lot of investors’ minds: How can people invest in real estate without buying a home? Co-Founder and COO, Brett Crosby, describes how PeerStreet’s platform allows investors access to short-term investments in bridge loans in a way never before possible. The story of how this new PeerStreet marketplace came to be has proven to be as interesting to media outlets as the marketplace itself. Brett recently sat down for a one-on-one interview with John Siracusa, host of the biweekly Bank On It podcast, to discuss his journey—from co-founding Google Analytics to co-founding PeerStreet, and how the aftermath of the 2008 crash inspired the company’s creation. You can hear more about PeerStreet’s pioneering place in FinTech throughout the second season of BrightTALK’s webinar series “Focus on Fintech”—particularly in the just-released third episode, “What makes a successful FinTech?”—where Brett discusses the origins of PeerStreet and how we’re setting out to transform this $10 trillion-with-a-T industry. We’re happy to talk about ourselves—but we’re even more excited when we see that others are talking about us all on their own, like Forbes did in its article “The 3 trends to watch in FinTech, according to top VCs.” We’re getting recognized outside of FinTech, too. Comparably ranked PeerStreet in the top 25 small/mid-sized companies in the country for company happiness. The best part? This award is generated entirely by employee ratings. It’s imperative to us that as we build this transformative marketplace, our employees are happy and successful as they do it.This comes at the heels of several other 2018 Comparably awards, including Best Company Leadership, Best CEOs for Women, Best Company Managers, Best CEOs for Diversity, Best Companies for Compensation, and being a top 25 company to work for in Los Angeles.
Our team is always exploring ways to make it easier to invest on our platform. So we are excited to announce a new feature we recently rolled out: Recurring Deposits.Based on requests from many of our customers, we created an easier way for investors to deposit funds on PeerStreet. A lot of people like to set aside a certain amount of money on a set schedule (like pay periods) for pure saving purposes. So we thought to apply the same concept but with the opportunity to earn interest on top of those savings. You can easily turn on Recurring Deposits by visiting your account page. Funds can be deposited on the day and frequency you choose, and in the amount you specify.We hope this new launch will make your experience on PeerStreet easier and more helpful for your investing goals. If you have any feedback concerning Recurring Deposits, please feel free to write to us at [email protected].
We recently announced a new investment product called Cash Offer Loans, which add to the investment options available on PeerStreet. Cash Offer Loans provide additional investment durations available on our platform. Investors can now find terms that range from as short as 30 days to as long as 36 months.Our goal is to give investors a broad range of options to choose from and Cash Offer Loans are one step further down that path. Additionally, Cash Offer Loans are made to a service provider who helps homeowners buy their next home with an all-cash offer so they can be more competitive in the home buying process. The loans give them a chance to get into their new home before selling their current residence while passing along the yield of the loan to investors. We hope this new launch will continue to improve your experience on PeerStreet. If you have any feedback, please write to us at [email protected].
Watch PeerStreet Co-Founder and COO, Brett Crosby, on his most recent interview on The American Dream TV Show. Back in March Brett made his first appearance on The American Dream TV Show and we were thrilled to have him invited back on the show again, this time in the studio. On the show, which aired first in San Diego, then nationally, Brett sat down to chat with Craig Sewing. They discussed how PeerStreet is democratizing access to investing in real estate debt and the effects of our mission. Our model allows individuals to invest in loans already vetted by private lenders throughout the United States. Brett goes on to discuss the state of the market and how PeerStreet views real estate debt as an asset class.Thanks to American Dream TV for having us once again to help explain the ramifications of our platform and the unprecedented capabilities PeerStreet has created for people to invest in and diversify in real estate debt.In addition to striving to level the playing field between Main Street and Wall Street, we are passionate about maintaining a healthy and positive culture internally. We were honored to win several culture awards recently. If you or someone you know is looking to be a part of what we are doing, check out our open positions on our Careers page or email us at [email protected].
USA Today recently reported that PeerStreet is being recognized for a number of awards including, Best Company for Managers, Best Company for Leadership, Best CEO for Diversity and Best CEO for Women. The data for these rewards were collected by Comparably. Not only are we thrilled with these awards, but we are honored to be listed amongst some of the country’s largest and most reputable companies like Google, Netflix, Apple, Salesforce and Microsoft. We have a long way to go before getting to their stature, but that’s even more reason we’re honored to be included in such a prestigious list. Recently we’ve been announcing big company milestones highlighting the progress we’re making as a business like $1 Billion in loans funded and our $30M series B round. But we feel a completely different kind of joy when PeerStreet is recognized for its people and culture. Accomplishing big milestones are much more rewarding when surrounded by positive colleagues who share in our goals and contribute to our culture. Join us! Are you or someone you know an innovator with the talent and experience to help us achieve our mission? We are currently hiring for many roles. Take a look, then email [email protected] for more information.
When we launched PeerStreet in October 2015, we were excited to begin on our journey in transforming the mortgage industry. Our co-founders recognized the need in the market and came together to create a powerful platform to connect investors and lenders. The growth has been incredible. As investor appetite for short-term real estate backed assets has grown, PeerStreet has quickly become the premier platform for accessing real estate debt investments. Just one year ago this month, we announced that $300 million had been funded since we started. In September, we announced we had surpassed $500 million. And now, we are happy to announce that we’ve surpassed another major milestone -- $1 billion in loans funded through PeerStreet. And we’ve really just started. As our platform has grown, it has created greater opportunity for investors to diversify their capital across loans and for lenders to access a new, reliable capital source. Looking forward, we expect the network effects of the platform to continue creating value and unlocking opportunities for participants because, at the end of the day, scale matters: more investors on the platform means more capital provided to lenders who make more loans to borrowers, which feeds back into more value for investors (greater diversification, better data to refine credit models, new investment products, etc.).With that in mind, we recently announced that we’ve begun expanding into new asset classes including buy-to-rent, multifamily and small balance commercial real estate loans. We’ve added senior talent, including John Devereux as Chief Real Estate Officer and Greg Galusha as our Head of Commercial Real Estate to help lead those efforts. Not only will these efforts bring even more diversification options to our investors, they provide more flexibility to lenders who can then provide more options to qualified borrowers. Everyone in the ecosystem wins.Above anything else, the key ingredients that have made PeerStreet successful are our customers, our partners and our incredible team of employees and investors. We thank you all for your continued support and participation as we continue to transform mortgage finance for the better.
Today we are pleased to announce that we have raised $29.5 million in a Series B funding round and that we have funded over $900 million in loans. Since opening our doors to the public in 2015, we've been working hard to democratize access to real estate debt. This round of funding helps us further our mission and invest in the areas that matter most to our lenders and investors.The raise will accelerate our growth and allow us to broaden the type of real estate loans we cultivate from our network of lenders. The Series B round was led by World Innovation Lab. Existing investors Andreessen Horowitz, Thomvest, Colchis Capital, Felicis Ventures, and others participated along with new investors, Solon Mack and Navitas Capital. The funding will also support our efforts to hire more world-class talent. This funding round follows another year of high growth for PeerStreet. Just last May we announced $300 million in loans funded. We’ve more than doubled volume from the previous year and are on track to continue that growth trajectory. PeerStreet is now integrated with three prominent personal finance platforms including Wealthfront, Betterment, and Personal Capital. We have also significantly enhanced our suite of tools and analytics for lenders over the past year and released an innovative short-term investment product for investors seeking greater liquidity.We are excited to share this news and some new milestones we’ve recently achieved. Most recently, we have been honored with a number of industry awards recognizing our culture. Not only were we named one of the Best Startups to Work For in Los Angeles, but we were also recognized as one of the Best Fintechs to Work For.We are thankful for the incredible support our community has shown us since our launch and are excited for what’s ahead. Come join us on our journey as we pursue our goal of reshaping real estate finance for the better!
PeerStreet’s Co-founder and COO, Brett Crosby, was recently a guest on Craig Sewing’s American Dream TV show to discuss PeerStreet and how it allows more people to access real estate debt as an investment to generate passive income.Brett explains how PeerStreet’s model allows for investing in real estate like never before. Investors have been able to invest in real estate equity, but real estate debt investments, which are typically safer because of where they are on the capital stack, is a relatively new innovation. By giving people access to real estate-backed loans, investors can diversify their portfolios through PeerStreet, which as a company, double checks the underwriting of each loan offered as an investment. PeerStreet empowers the American Dream, which Brett points out because it is a safer investment than many alternative options such as consumer credit. Not only that, PeerStreet enables real estate entrepreneurs to improve the US housing stock which creates jobs and improve communities.Brett also discussed his time in San Diego (where the show is filmed and where Brett co-founded Urchin Software Corporation before it was acquired by Google in 2005 and subsequently relaunched as Google Analytics) as well as his time at Google. The premise of the show is to highlight positive news and opportunities in part to offer an alternative to the modern day negative news cycle. Watch the full interview on YouTube.
We want our investors to be able to easily track and understand the status of each of their loan positions. That’s why PeerStreet wants to keep improving your Dashboard to help make investing on PeerStreet as transparent as possible. Your investment dollars are important to us and since we closely monitor the performance of each loan, you should be able to do so also.Recently, we improved the Positions tab so that you can sort your loans based on maturity date, rate and loan status. With this feature, you can quickly review the payment status of each of your loans. The improvement makes it easier to identify your loans and read notifications from PeerStreet with more information about payment status.Positions tab sorted by maturity date:
Positions tab sorted by rate (does not account for a yield bump, if applied):
Positions tab sorted by loan status:
If you have feedback for us about how we can keep improving, please reach out to us at [email protected].*All data displayed in screenshots is fictitious data.
The end of this year has been packed with some excellent coverage for PeerStreet that we are pretty excited about. We wanted to recap some of the big highlights for our investors. Forbes recently published an article about PeerStreet about how we are changing the real estate investing industry. Read the full article: “This $700 Billion Industry Has Been Untouched By Tech, Until PeerStreet Changed Everything." Motley Fool, a popular investing and finance blog, wrote about our Self-Directed IRA investing program and how accredited investors can take advantage of this opportunity to buy real estate debt. Crowdfund Insider picked up on our news about how we’ve launched new analytics tools for our lenders and how these tools help our lenders originate quality loans. Brew Johnson made an appearance on a show that focuses on notable tech startups in Los Angeles. A quote from Brew opens the episode about changing the lending system and his full interview starts at about 20:07 until the end of the show. Finally, Alex Rampell, our board member from Andreessen Horowitz, was interviewed by The Twenty Minute VC on Innovation and PeerStreet’s burgeoning business model. It’s been a year filled with positive coverage as we’ve continued building our company and we’re happy to see it culminate in more growth for our business.
As always, we welcome feedback from our investors about how we can continue to improve. If you have something you’d like to share with our team, please write to [email protected] and let us know what you think.
PeerStreet has been nominated in the Best Alternative Investments Platform category for the Benzinga Global Fintech Awards for 2018. Support PeerStreet by sharing the Benzinga link on Facebook, LinkedIn or Twitter. Every social media share equals one vote, so share as much as you can to ensure we get into the next round of judging to win the category!This is the fourth year Benzinga will be hosting this award ceremony, which focuses on celebrating outstanding innovation in the financial technology space. Over 250 companies in 19 different categories compete against each other by collecting impressions through social media. Since being nominated for this award last year, PeerStreet has been recognized as a CB Insights FinTech 250 company and has won numerous awards including the LendIt Emerging Real Estate Platform award, and the Fintech Breakthrough Award for the Best Overall Peer-to-Peer Lending Platform. We were also recently named one of the top startups to work for in LA and one of the Rising Startups at TechWeek Los Angeles. Our two Co-Founders were both featured in some notable interviews, as well. Brett Crosby was featured in a video interview by Fintech Finance during the Money20/20 Conference in Las Vegas last month. Watch the video to learn about how PeerStreet is creating a secondary market for real estate-backed loans. Also, Brew Johnson was interviewed by National Real Estate Forum about creating a secondary marketplace for real estate loans.
We are also currently hiring across a diverse set of roles at PeerStreet including engineering, accounting, graphic design, business development, real estate and sales. Please visit our Careers Page to look into the exact positions that we are looking for. If you are interested in applying for a position, please contact us at [email protected].
This past summer, we continued our internship program from past years and had Jake Lane, a current student at Fordham University in New York City, participate in our program. While at PeerStreet, Jake performed duties for both our real estate team and our servicing team. At the end of his internship, Jake wanted to help write about private money lending, based on what he had learned over the summer at PeerStreet.
Many investors on our platform know that PeerStreet sources loans from private lenders. However, the private lending market is a niche area of finance. Today, private money loans, sometimes called hard money loans or bridge loans, describe short-term high-interest rate loans from private funds. Private money lenders tend to be local organizations that lend against a hard asset, such as real estate. They are not as heavily regulated as traditional banks and therefore may have additional flexibility in terms of loan amount, interest rates, duration, etc. These private lenders offer a pool of resources and capital to potential borrowers and are sometimes funded by their networks of family and friends.
The private real estate lending industry emerged in the 1950s and has developed into a diverse and progressive financial alternative for real estate entrepreneurs. California is a dominant force in the private money industry, with over 180 lenders statewide. The size of the California private real estate lending industry, in particular, has been critical to borrowers in this market, as the median home price in California has increased 60% over the last five years, skyrocketing from an average of $312,000 in June 2012 to $503,000 in June 2017. This tremendous rise has fueled a vibrant private money lending community within California, which provides quick financing and access to large amounts of capital. PeerStreet is situated in the middle of this rapidly growing market and does a significant amount of volume in California, across many different lenders.
It is common for borrowers to use private money loans to rehab a property. Two popular strategies borrowers use are “fix-n-flip” or “fix to rent” for single-family residential properties. These lenders underwrite the property and credit score of the borrower and place emphasis on the LTV and ARV (after repair value) of the subject property. These are generally short-term loans where the lender typically charges higher interest rates than traditional banks. Even with higher rates, these loans are oftentimes still worthwhile for the borrower because, without it, they’d miss out on a business opportunity. In short, private lenders can help borrowers bypass the red tape of highly regulated banks and offer a viable and alternative source of capital.
Private lenders typically focus on specific regions where they are experts on the local real estate market. This gives them an advantage when they need to underwrite a property quickly. What is also valuable about private lenders is that they have invaluable relationships with experienced and successful borrowers. In this way, lending on a local level is beneficial in the underwriting process, since most lenders understand their local real estate markets intimately. This ecosystem of lenders and borrowers has helped us quickly expand to over 30 states throughout the US, while still maintaining a network of lenders who know their local markets and borrowers. As part of PeerStreet’s diligence process, each loan goes through an additional underwriting review by our team of in-house experts. Our goal is to create a system that allows us to scale our business while continuing to offer high-quality assets to investors in a way never before possible.
As shown above, private lenders offer a compelling alternative to traditional sources of financing. Their loans represent a unique opportunity to investors who now have the unprecedented ability to access and diversify across this asset class through PeerStreet. Whether you are looking to take out a loan from a private money lender to finance your next project or use PeerStreet to invest in this space, the private money market is a dynamic arena for investors looking to diversify and build wealth.
If you’d like to learn more about investing on PeerStreet, please see our How It Works page or contact us at [email protected] or 844-733-7787.
Happy Two-Year Anniversary at PeerStreet! We can’t believe how time flies and we couldn’t be more proud of where we are today! Only two years ago, PeerStreet launched our platform to the public during Money 20/20, an annual nationwide financial services conference. Below are pictures of our team cutting the ribbon on our booth to celebrate our launch.
Our co-founders, Brew Johnson and Brett Crosby, were back at the conference this past week. In the last two years we’ve experienced remarkable growth and now have over 70 employees, along with investments on our platform in over 30 states. Last month, we hit a milestone of over half a billion in loans funded and still have zero losses to our investors. We want to thank all of our customers who have supported us from the beginning. Your constructive feedback has helped us develop into the organization we are today. In addition to our investors and lenders, we’ve also had incredible support from many reporters and publications across the board. In particular, reporters within the alternative investment industry were some of the first to write about PeerStreet, like George Popsescu of Lending Times, Tony Zerucha of Bankless Times, Glenn Leibowitz at Inc., Daniel Lanyon at AltFi, Diana Asatryan at Bank Innovation, Peter Renton at Lend Academy, Samantha Hurst at CrowdFund Insider, Omri Barzilay at Forbes and Chris Lustrino at Simple.Innovation.Change. Certainly, no less important are the bloggers and podcasters in the space who have also covered us. We are particularly grateful for the flattering reviews from Mr. Money Mustache, Ian Ippolito of Real Estate Crowdfunding Review, Invest Like A Boss, and GenY Finance Guy, but there have been many, many others.As we continue to build out our platform, we’ve received recognition from several organizations for our work, including Best Peer-to-Peer Lending Platform from the FinTech Breakthrough Awards, Innovator of the Year in Lending from Think Realty Magazine, and Top Emerging Real Estate Platform from the LendIt Industry Awards. We were also recently listed as one of the “Top 10 Startups To Work For In Los Angeles.” These awards motivate us to keep making progress, but we are still reminded of where we came from in the beginning with only a handful of employees and an idea to revolutionize the mortgage industry. We hope you are enjoying the journey with us. We look forward to your continued feedback and support. If you have an idea of how we can continue to improve, please feel free to reach out to us at [email protected].
Building a startup can be both challenging and exhilarating, often at the same time. At PeerStreet, we are changing the way people can invest in real estate mortgages, which presents plenty of obstacles and rewards for our team. Thankfully, we have attracted talented and passionate people who work hard every day to build this business. Our founders, Brew Johnson, Brett Crosby and Alex Perelman, all have unique experience working for and launching successful startups.Recently, Noah Kagan, an influencer covering startups and entrepreneurs, interviewed Brett about how his former company, Urchin Software Corporation, was acquired by Google. He shares some of his insights on Noah’s newly published video, Real Business Stories: The Unlikely Origin Story of Google Analytics. In the episode, Brett gives Noah a tour of PeerStreet’s office space, so watch the video to get a sneak peek of where our daily operations happen. Brett also recently shared several lessons and experiences for the Xoogler (ex-Googler) network. He talks extensively about PeerStreet and shares some of the worst and best highlights of his career.
Now that you’ve had a glimpse into what life is like at a technology startup, if you want to learn more about what PeerStreet does, watch our explainer video. As always, we’d love to answer any of your questions. Please reach out to us at 844-733-7787 or [email protected].