At PeerStreet, the #1 request from investors has been consistent: “If a loan goes into default, can I sell my interest in the loan?” Well now, on select loans, they can. With PeerStreet’s new Secondary Marketplace, investors will be notified if they have the opportunity to sell their position in loans — increasing flexibility and most importantly, liquidity. We have always sought to make investing in real estate debt as easy as investing in the stock market, and PeerStreet’s Secondary Marketplace is an exciting step in that direction. Our goal, with this launch, is to create an even better platform and further increase the availability of capital to our investors. 

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What is the Secondary Marketplace?

PeerStreet’s Secondary Marketplace is a new feature that gives certain investors in PeerStreet loans the opportunity to trade out of their investments. Initially, this feature will only be limited to certain loans and the buyout offers will come from third parties. Eventually, we hope to make this available to all investors and investment types on our platform. Buyout offers allow investors to sell existing investments in loans before the term has been reached or the loan has been worked out. When investors sell their interest, they’re exiting the investment completely and will no longer be entitled to any payments. This means, investors can get liquidity before the loan has been paid back and can move on to investing in more loans. 

How it works

In PeerStreet’s Secondary Marketplace, if a third party is interested in purchasing an investor’s current interest in a loan, the third party will make an offer to purchase that investor’s interest in the loan and the investor will get an email alerting them of the option to sell. If they accept the offer, they’ll receive cash for the offer and will no longer own any portion of the loan. 

Keep in mind

• Since only select loans will be eligible to participate in this, the investor will be notified via email if a loan they are investing in has a buyout offer
• If the investor accepts the offer, the sale of their interest in the loan will close within three business days
• All future payments or cash flows relating to their previous interest in the loan — including accrued but unpaid interest — will go to the new owner of the investment.

Make PeerStreet’s Secondary Marketplace work for you. 

*Disclaimer: there is no guarantee that all current or future loans will be included in the Secondary Marketplace program and/or receive any Buyout Offers from third-party purchasers. Investors on PeerStreet’s marketplace should not make investments on the assumption that there will later exist liquidity for their position. Investments in MPDNs generally remain illiquid.