It has been a wild year in fixed income markets, as the Fed continues to raise rates to tackle inflation¹. As a result, the surge in mortgage rates dampened originations across all types of mortgage products. Declining home prices has not helped the supply story either. Almost all forecasts point to sustained negative outlook for home prices as demand slows and mortgage rates rise.

Meanwhile, affordability constraints, a lack of housing supply and now rising mortgage rates have helped to keep rents high. Will this continue? One school of thought is that landlords can pass on the higher interest rate costs to tenants.

How could this impact the bridge loan supply? It’s yet to be seen whether the bridge loan borrower takes advantage of the lower home prices, perhaps use the fix-to-rent market and pass on higher interest costs on to tenants. In part, the timing of higher supply will depend on when and what the market deems as bottom or near bottom for home prices.

Lastly, our Delinquency & Resolutions data show that less than 1.0% of loans were liquidated with a loss and 1.1% liquidated with a gain. Part of the reason for this gain is because the pandemic related disruptions did not put downward pressure on housing values. This sector benefited from fundamental housing supply, in the backdrop of strong economic growth with increasing home prices up until Q1-2022.

¹ The Fed has hiked interest rates six times in 2022 with four recent consecutive rate hikes of 75bps.

PeerStreet has long been both a technology leader and innovator in the digitized real estate investment space. Today, we continue to lead the way with the launch of our newest technological innovation: one-click diversification of real-estate backed debt investing.

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As a leading fintech player in real estate investments, this innovation pushes forward PeerStreet’s core mission of building a tech-enabled, two-sided marketplace for both investors and loan holders.

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Two-sided marketplaces are a wildly successful business model - consider both household names such as Amazon, Uber, and Airbnb, to niche power players like Zenefits, Upwork, Seamless — that connect multiple individuals with common interests on both sides: merchants and buyers, drivers and riders. To function properly, they are almost exclusively organized as digital platforms powered by technology. This is what PeerStreet has created for the real estate debt marketplace.

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Our technology can create access to an instantly diversified portfolio of real estate-backed loans with just the click of a button. 

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What’s more, the platform’s cutting edge technology and automation minimizes maintenance, saving on PeerStreet's total headcount and making us more competitive by removing the need to charge management fees. Simplicity is key for platforms such as ours to succeed, and we strive every day to provide that for our users. This new technology creating one-click diversification does just that.

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Our dedicated engineering team has been working around the clock. Because of their hard work, and PeerStreet’s vision for the future of real estate, we are constantly unlocking new and innovative ways to make investing more accessible.

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With this new feature, we continue to build on our history of platform innovations that enables the complex algorithms that are required to unlock fractional investment in this alternative asset class. We have, and always will, strive to remove the obstacles that hold consumers back from realizing the value of real estate debt investments.

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Learn More

The Federal Housing Finance Agency (FHFA) announced in January its plans to increase the upfront fees Fannie Mae and Freddie Mac charge. These fees apply to any second home mortgage loans sold to the agencies.  

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With the potential to have a big impact on real estate investors, this new fee adds another hurdle to non-owner occupied property deals. And with single-family investment homes selling in record numbers — especially in hot investment markets like Miami, Phoenix, and Austin — the news isn’t sitting well with everyone…

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A blow to borrowers

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Chuck Fowke, chairman of the National Association of Home Builders commented about the rate hike... “With the nation in the midst of a housing affordability crisis and many more workers electing to telework, this is exactly the wrong time for federal regulators to be raising fees on homeownership and second homes.

If FHFA is truly interested in promoting housing affordability, the agency would not be taxing home buyers to pad the capital positions for Fannie Mae and Freddie Mac.”

The good news? PeerStreet and our national network of private lenders are here to help.

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PeerStreet provides alternative funding options for originators of private loans

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With FHFA trying to bolster homeownership (possibly at the experience of investor owners), now is a great time for your borrowers to explore private lending options and alternative funding sources. 

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‍PeerStreet offers several options, including our Residential for Rent Loan Program

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Great for non-owner occupied properties, our Residential for Rent Loan program can help borrowers purchase, refinance, or take cash out on properties. It offers major benefits, including:

1. No qualifying income requirement. If the rent covers the loan payment, including taxes and insurance, then that’s all that’s required to qualify the borrower/guarantor.
2. And as long as the borrower has qualifying credit, down payment, and some liquidity reserves, then there is little else needed for approval. It's a much less invasive process than many traditional lending options. 

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To learn more about our Residential for Rent Loan program, check out our one sheeter. 

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Or, if you’re ready to partner with PeerStreet, get started today.

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Smart originators know that partnering with PeerStreet, means partnering with growth. Become a partner today. 

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If you’re a borrower who is looking for a loan, contact us and we’ll put you in touch with an originator that specializes in your region and project type.

JW Capital Group is a direct private lender specializing in short-term secured loans. They offer financing for investments in residential and commercial real estate. PeerStreet conducted a case study to determine the firm’s challenges, then proposed solutions and evaluated the results of our partnership together. Success stories like this are why we are so passionate about building this marketplace.

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The challenge: Scale the business, close more loans

JW Capital’s growth was slowing down. In addition to struggling to raise their capital fund, they had a hard time originating loans quickly — their small team couldn’t keep up. This hurt relationships with their borrowers, impacting the growth they envisioned for their business. At PeerStreet, we knew that to help JW Capital succeed, we needed to help them scale their business and close more loans. 

Our solution: Marketplace, technology, people

JW Capital tapped into PeerStreet’s marketplace to access institutional and investor capital at leading rates. They also partnered with us on funding into origination (FIO) loans and table-funded projects. PeerStreet streamlined JW Capital’s origination process through automation and digitization — so they could spend less time processing, and more time generating new borrower leads. We offered them access to a list of features through our technology platform, Lender Platform, including:

1. DocGen auto-generates loan documents, so originators can complete files more quickly for borrowers. On average, originators who use DocGen see a 29% reduction in time it takes to fund a loan. 
2. ‍Scenario Builder allows originators to input different loan scenarios to instantly provide borrowers with a variety of rate options and loan terms — based on their  individual needs. Originators can easily identify the best rate or maximum leverage to lock in borrowers faster, while creating a better customer experience.
3. ‍Credit Box Advisor enables originators to quickly understand if a loan has demand through the PeerStreet marketplace and gives instant feedback on whether or not the loan will qualify to “sell” through the platform.
4. ‍Task Manager creates dynamic tasks associated with the type of loan submitted in order to close the loan.

PeerStreet continually develops tools that make it easier to fund and sell loans, so originators can focus on what they do best — generating new leads to grow their businesses. We look forward to unrolling our new Originator Suite, an industry-first suite of tools designed to scale your business and improve your borrower relationships. With this upgrade, originators can create custom loan scenarios, check rates, and have borrowers apply via your website. Curious? Learn more about our Originator Suite here. 

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From relationship managers and processors, to underwriters, legal teams, and asset managers, PeerStreet’s expert teams served as partners through every step of the process. So JW Capital could scale faster and smarter — all while doing less.

We were held back by the old way of doing things, and struggled to keep up with the competition. PeerStreet gave us our freedom back. Now, we’re back to doing what we do best.”

— MAURICE L. WILSON, MORTGAGE LOAN OFFICER, JW CAPITAL GROUP

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Results: In their first year with PeerStreet, JW Capital grew by more than 400%

Now, JW Capital is competing with large financial institutions and fulfilling their borrowers’ expectations — growing their loan volume with PeerStreet by 207% in just under two years. And, as their efficiency grew, so did their customers’ interest in what JW Capital could offer, turning them into the originating partner they set out to become — with no help from a bank, no managing of investors, and no need to hire anyone beyond their nine-person team.

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400% GROWTH in one year with PeerStreet

2X THE LOAN VOLUME in just under two years

$1M LOAN VOLUME per year with PeerStreet

$4.3M in total loan volume

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Ready to take your business to the next level just like JW Capital? Become an originating partner with PeerStreet. Get started today with a free trial of our Lender Platform.‍

We are humbled to have once again been named one of the best places to work!

‍ PeerStreet has received numerous awards, accolades, and recognitions over the years, but few make us as proud as when the acknowledgment comes from our own employees. It is even more notable given that we switched from mostly in-office staff, to a much more remote-focused model. So when Built in LA once again named PeerStreet one of its Best Places to Work, we were beyond honored.

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At PeerStreet, we take our culture seriously. The combination of our business model, startup culture, explosive growth, and numerous in-office perks — foosball tables, free snacks, beer and wine on tap, free lunches, gym subsidies, and much more — make it an exciting place to work. But many of those in-office perks are no longer as relevant. On top of Covid-19 regulations keeping locals out of our office, we’ve hired well beyond our LA borders and have many employees working remotely. So when our team was surveyed to see if our company should be considered on this list, the results were wonderful to see.

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We’ve taken the changes in stride and found new ways to build culture and work together toward our common goals. Part of that was revamping our company principles (which Built in LA also recently covered) to make sure employees were still energized and felt supported while working from home. As we continue to evolve and grow, we couldn’t be more excited about where we’re headed. 

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As we look ahead to 2022, we’re planning to continue hiring great talent and invest in both our people and the culture of the company. If you’re considering changing paths, PeerStreet could be the place for you. Check out our careers page to see if there is a fit. 

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 more so 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? 

To build out a compliance and operational risk management framework for the future of the company.

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What did you do prior to PeerStreet?

I was the Head of Operational Risk and Bank Partnerships at OppLoans, an online high-cost / short-term consumer lender in Chicago. I built this function from the ground up. Before that I worked in financial services (other online lenders, banks, etc.) in a variety of roles: internal audit, risk management, compliance, and operations. 

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What do you think makes PeerStreet unique?

The people and the passion for our products.

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

Transparency, teamwork, celebrations

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What is the most rewarding part of your job?

Finding solutions to interesting / complex problems.

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

With my kids.

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Define yourself in three words.

New York Native

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

Real estate is one of the largest financial asset classes in the world — and investing in it is a fantastic way to earn passive income and diversify your portfolio. Plus, since principal can be recouped in a default (in most cases, through the sale of the property through a foreclosure sale), they’re on the safer side when it comes to investing your hard-earned cash. But, the list of options can be a tad overwhelming. Are you someone who wants to earn passive income from the comfort of your home? Or, are you looking for something more hands-on like becoming a landlord or creating your own fix-and-flip project? 

Lucky for you, we’ve made a short list. When you consider the possibilities — real estate loans, REITs, and physical properties — ask yourself, “Which will help me earn the most passive income, so I can build long-term wealth?” Take a look at three of the most common ways to invest in real estate, so you can diversify your portfolio with confidence.

Before we begin, we want to make sure that this post is not written to be interpreted as investment advice. Each investor has their own goals and risk tolerance. Please consult an investment professional prior to investing.

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Short-term real estate loans

Real estate debt investing used to be largely closed-off to the public. Now, companies like PeerStreet are reinventing a more transparent system designed to produce higher returns than bonds, savings, and other equities. So you can earn extra income and diversify your portfolio just like institutions have for decades.

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How it works

Developers of fix-and-flip and rental properties borrow capital from private lenders. PeerStreet will purchase those loans and place them on our platform. Then, investors can invest in the loans and get monthly payments as the borrowers pay the interest and principal back. It’s a simple, hands-off approach to generating monthly income.

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Benefits

• Short-term, secure loans
• Easy, customizable approach to investing
• Strong ability to diversify your portfolio
• Earn steady, monthly income with yields that can be between 6-12% annually
• Access to comprehensive data about each investment
• Hedge against stock market volatility

Drawbacks

• Relies on borrowers to make payments 
• Although rare, foreclosures can happen (the loan either gets paid back or the property will be owned and can then be sold)
  

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Real estate investment trusts (REITs)

REITs are one of the first alternative investments people think of when they’re looking to expand their portfolios. REITs are corporations that act like mutual funds — but, instead of securities, REITs are made up of real estate assets. These assets may include buildings like offices, hotels, apartments, and shopping malls.

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How it works

You can invest and trade REITs on the stock market, just like you would stocks. When you invest, you get access to all of the real estate properties owned by that REIT. And since they’re required by the IRS to pay out 90% of their taxable income to shareholders, dividends are usually much higher than stocks. 

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Benefits

• High-yield dividends, averaging yields of 5-8% annually
• Liquidity that matches the stock market
• Earn income without the hassle of managing property
• Potential for capital appreciation
• Little to no barriers of entry for investors

‍Drawbacks

• Most aren’t considered “qualified dividends,” so they’re taxed at higher rates
• Fluctuate with interest rates and stock market volatility
• Most individual REITs focus on a specific property type, and therefore, aren’t diversified
• No control over which properties the REIT will own and manage
  

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Buy-and-rent property

If you’re looking for a more tangible way to earn passive income, you can buy residential  or commercial properties and rent them out. This can be a particularly rewarding type of  investing because you get to put boots on the ground and be a part of the process — from start to finish.

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How it works

At first glance, investing in physical properties is simple. You buy a property that looks promising, then rent it out and make money through rental income and appreciation. Typically, investors keep each property for over 10 years, making it a relatively stable, long-term investment. But, buying and renting out your own property can be expensive and time-consuming. It takes a certain level of expertise, hard work, and dedication to each project you take on.

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Benefits

• High-yield, averaging between 7-10% annually
• Control over decisions that affect the property (this can be a pro or con, depending on how much experience you have)
• Unique perks like using your rentals as vacation spots

Drawbacks

• Highly illiquid asset
• Requires a large sum of money upfront
• Can cost a significant amount of time and energy to succeed

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Investing in real estate is one of the easiest ways to diversify and earn more passive income. And at PeerStreet, we’ll source high-quality real estate loans and give you complete transparency into each investment, so you can feel good about where your money’s going — and get excited about where it will go next.

PeerStreet is an intuitive technology platform for investing in real estate that provides high-quality real estate investments at your fingertips and makes the market work for you. Try PeerStreet today.

Last week, PeerStreet was thrilled to return to the annual American Association of Private Lenders (AAPL) Conference at Caesars Palace in Las Vegas. 

Not only did we sponsor the event, we had three speakers, a fully staffed booth, a party, an awards presentation and a new product announcement! Here are some of the highlights.

We had so much fun, we created this sizzle reel.

We announced an amazing new product suite:

Our CEO, Brew Johnson, and CTO, Oren Ben Shaul, were on stage to announce our new Originator Suite, which will include tools such as the loan scenario builder, loan application, document collection and others! 

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Take a look at the video to see the full product announcement.

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‍Our head of originator sales lended some major insight on the future of appraisals: ‍

Dan Wasson, our Vice President of Sales, sat on a panel which explored planning for & mitigating the appraisal squeeze. She presented tips on how to ensure you get the appraisal you need, even during this year of record-breaking origination volume.

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At our lender party, we announced six awards:

Lender of the Year: Karzi Equities

They’ve been an originator since 2016 and have our program down pat, with their fastest loan funding in just three days. This is the third year they’ve won this award.

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Most Rental Loan Units: Trius Lending Partners

They took 830 days from the first time we met them until they on onboarded in 2018, since then, they’ve become a powerhouse in rental loans!

Most Rental Volume: Pimlico

They’ve been working with us since 2019. This year alone, we did over 100 more loans together than in their first two working with us.

Best Newcomer: LendingDeck

It took them only 30 days from when we first met to get them fully onboarded in December 2020. Together, we closed over 70 loans in their first 11 months. 

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Best Partner: Budget

Joining in 2015, they were one of our first lenders ever onboarded. They more than doubled their volume since Covid and they are a crowd favorite amongst the teams that work with them due to their intimate knowledge of our systems, credit boxes, and lending as a whole. 

The Big Kahuna: Twin Cal

Onboarded in late 2020 and hitting home runs out of the gate, this year they closed our largest rental loan on a nearly $3M deal in Los Angeles.

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And we went Back to the Future with our trade show booth and this fun sizzle reel looping on the TV.

We had a wonderful time connecting with everyone at APPL and are already thinking of ways to make it even better next year!

For the third year in a row, PeerStreet is honored to be included on the Deloitte Technology Fast 500™, a ranking of the 500 fastest-growing technology, media, telecommunications, life sciences, fintech, and energy tech companies in North America. This comes on the heels of PeerStreet winning Crowdfunding Platform of the Year and being named one of the “2021 Best Places to Work in Financial Technology.” Our ranking is based on our 231% fiscal-year revenue growth over the previous three years.

This past year, demand to invest in loans on our platform has remained high and, despite universal decline in interest rates, returns for investors and our cumulative company earnings has continued to grow. In addition to this growth, we’ve had some exciting launches this year. We gave investors the opportunity to invest in multifamily properties, empowering originators, borrowers, and investors alike to capitalize on real estate and meet their financial goals. Additionally, we launched The E.N.U.F. Project in February. This charitable initiative is designed to invest in real estate entrepreneurs from underserved backgrounds who are committed to improving their communities and closing the wealth gap using the power of real estate. 

Over the next year, we’re hoping to transform the industry — from the inside out. And we’ve already created a strong foundation to do so. For investors, we’ve started increasing liquidity. We have always sought to make investing in real estate debt as easy as investing in the stock market, and our new Secondary Marketplace is an exciting step in that direction. For originators, we’re giving them a new suite of  tools to help scale their businesses. And as an overall brand, we’ve refreshed our company values to give us an even stronger platform for the future growth we’re anticipating. 

“Each year the Technology Fast 500 shines a light on leading innovators in technology and this year is no exception,” said Paul Silverglate, vice chair, Deloitte LLP and U.S. technology sector leader. “In the face of innumerable challenges resulting from the pandemic, the best and brightest were able to pivot, reinvent and transform and grow. We celebrate the winning organizations and especially the talented employees driving their success.”

“The pandemic has underscored the urgent need for tech solutions in a variety of areas across health care, fintech, energy tech, entertainment, to name a few, so reliance on innovators like the winners of the Technology Fast 500 is more important than ever,” said Christie Simons, partner, Deloitte & Touche LLP and industry leader for technology, media and telecommunications within Deloitte’s audit & assurance practice. “These companies are not only at the cutting edge, transforming the way we do business, but most importantly, recognize the strategic importance of ongoing innovation, especially in the ever-changing world of technology.” 

We’re honored to be included alongside a number of innovative companies and we want to thank our investors, originators, and partners for your continued support.

Want to learn more about PeerStreet? Check out our About page.

We’re honored to be covered in Built in LA as a company who holds our values at the forefront of everything we do. Our Co-Founder & CCO, Brett Crosby, met with the Built in LA team to discuss how these values inform our vision, and the impact that our philosophy has had on achieving our long-term company goals.

With over 3.8 million unique views, Built in LA is a fantastic recruiting service for us. They provide key visibility and credibility in the tech space. Built in LA has given us some awesome features over the years, too, including listing us as one of the top LA startups to watch in 2017 and 2018, and on its list of 23 El Segundo Tech Companies You Should Know.

At PeerStreet, culture is top of mind in everything we do. And as we live out our vision of making real estate financing work better for everyone, it’s important that we cultivate an energized and supportive workplace for our employees first. Alongside the amazing benefits of working from home, it comes with it’s own unique set of challenges. Reclaiming these updated values has become more important than ever to make sure our team is living out PeerStreet’s vision whether they’re in the conference room or at their kitchen table. From our weekly all-hands meetings where we talk about our latest initiatives, successes, and challenges, to our long list of perks and company-wide outings, we’re serious about having a blast while transforming our industry. 

We’re growing like crazy, but what we’ve built is just the beginning of what we can do. And upgraded company values will give us an even stronger platform for the future growth we’re anticipating. Take a look at our refreshed  values:

Our values

• Customer value creation
• Innovate and improve, constantly
• Empower others
• Bias for action
• Candor, trust, and commitment
• Deliver results
• Insist on the highest standards
• Own it
• Have a blast

The impact of our values extends far beyond just company culture. They influence the way we engage with our customers and the communities we work with — whether that’s helping our customers create wealth and save time, or improving underserved communities from within and narrowing the wealth gap through our E.N.U.F. Project.

For more on PeerStreet, check out our homepage in Built in LA and see how we’re transforming the industry — from the inside out.

At PeerStreet, we want to give our accredited investors the opportunity to generate monthly income. Extra monthly income can be incredibly empowering — and put you on a path that’s more in-line with the life you envisioned for yourself. It can help you live a more fulfilling retirement, or even retire early. It can give you the boost you need to help fund your side hustle, or the freedom to ditch your day job and finally pursue your passion. Passive income can give you the resources to travel more often with friends and family. And it can even help you build wealth faster, creating a self-perpetuating cycle of wealth for future generations. 

Investing in the stock market can be a great option for people looking to build wealth over time. But where can you invest when you want to earn passive income every month that you can use immediately? Here are some of the best opportunities out there right now:

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1. Real estate loans

Average yield: 6% - 12%

Investing in high-yield, short term real estate loans has the potential to give you some of the highest returns out there — better than bonds, savings, and other equities. Part of the reason is because real estate debt is backed by physical assets. So even in rare cases, when a borrower walks away from a property, the principal (plus, more) can be recouped and distributed to investors with the sale of the property. Plus, the real estate market operates independently from the stock market, so it’s a great diversification asset.

But, anytime you invest, there’s always risk involved. Because real estate debt relies on borrowers to make their payments, some may see this asset class as higher risk than others. While foreclosures can happen, at PeerStreet, it’s rare (of all the loans that paid off since June 30, 2020, 99.6% paid off for a gain). To mitigate the difference, we’ve created a Secondary Marketplace to allow our current investors to sell their positions in certain loans to institutional third-party investors. 

https://wellkeptwallet.com/investments-for-monthly-income/

2. Real estate investment trusts (REITs)

Average yield: 5% - 8%

Real estate investment trusts, or REITs, are known to be an advantageous investment opportunity. Generally speaking, you can buy interest in publicly-traded REITs just like you would stocks, making them a highly liquid asset since you can sell them off quickly. Because the SEC requires public REITs to pay out 90% of their dividends, they’re also higher-yield investments. 

But because public REITs tend to move in-line with the stock market, they can be volatile assets, limiting the potential to diversify your portfolio. And because only 10% of profits of public REITs is used for growth, share prices may not grow as quickly as other assets. That said, if you want to start investing in real estate, public REITs may be an easy first step.

https://www.millionacres.com/real-estate-investing/reits/high-yield-reits/

3. Rental properties

Average yield: 4% - 10%

If you think you’ve got the chops (and money on-hand) to fix-and-flip homes or become a landlord, you can earn solid passive income. Rental properties may increase your net worth over time as the properties you manage appreciate in value. Plus, rents generally adjust to inflation, so you most likely won’t have to worry about diminishing returns and your tenants can pay off your mortgages. 

However, despite high yields, returns on rental properties can fluctuate with the real estate market. Also, they require a certain skill set and are notoriously illiquid. You can combat risk by screening tenants, protecting yourself with rent default insurance, and ensuring you’re an effective property manager. If you have the knowledge, drive, and money, rental properties can be a profitable endeavor.

https://wellkeptwallet.com/investments-for-monthly-income/

4. Bonds

Average yield: 0.1% to 3.3%

Bonds are paper assets that represent loans made from investors to borrowers. Investing in corporate and government bonds are typically less volatile investments than stocks and are, therefore, low-risk. Because of this, many people nearing retirement find them to be a reliable investment. That said, they’re also low-return investments and have less growth potential than stocks. Bonds are one of the safest assets you can find when looking to earn monthly returns. 

https://wellkeptwallet.com/investments-for-monthly-income/

5. Certificates of deposit (CDs)

Average yield: 0.4% - 0.8%

Certificates of deposit (CDs) are traditionally considered very safe investments and can help supplement your monthly returns. While they’re not the option with the highest yields, CDs can earn investors more returns than savings accounts (and they’re FDIC-insured). 

When you invest, you can only withdraw your interest before the CD fully matures if you want to pay a penalty. CDs either give you access to monthly interest payments or let you receive the full return  at the end of the term. Most terms are at least 12 months, so if you want immediate access to cash, this might not be the best option for you.

https://wellkeptwallet.com/investments-for-monthly-income/

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Building a diversified portfolio is within your reach — and earning passive income is the easiest thing you can do to set yourself up for a comfortable future. At PeerStreet, we’ll give you the ability to generate passive income through monthly recurring payments. So you can take your portfolio to the next level.

PeerStreet is an intuitive technology platform for investing in real estate that provides high-quality real estate investments at your fingertips and makes the market work for you. Try PeerStreet today.

PeerStreet's packing a bag and hitting the road in our DeLorean. Destination… Las Vegas! 

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PeerStreet's excited to once again be attending and exhibiting at the American Association of Private Lenders (AAPL) conference in Las Vegas. Happening November 14th-16th at Caesars Palace, AAPL boasts an attendee list of over 45 speakers and 500+ people from the industry. And PeerStreet will be front and center for the festivities. 

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Hear it from Brew

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Alongside networking and sessions, PeerStreet will be making some major product announcements and hosting an exclusive cocktail party. Oh, and did we mention our CEO, Brew Johnson, will also be speaking… Brew will be sharing industry-leading insights on how to leverage technology to 10x your origination business.

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A panel discussion you won’t want to miss

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In addition to Brew’s talk, Dana Wasson, our Vice President of Sales, will be speaking at a panel, planning for & mitigating the appraisal squeeze. She’ll be presenting tips on how originators can ensure they have the valuations they need — during the largest appraisal shortage of our generation.

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Something big is coming from product‍

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Our product team has been hard at work building innovative tools to help you originate smarter. Brew and our CTO, Oren Ben-Shaul, will unveil our latest product launch… and trust us, if you’re a lender or broker, this is one you don’t want to miss!

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It’s party time!

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And because we don’t believe in all work and no play, PeerStreet will be hosting our annual cocktail party, this time at the Kassi Beach House. Along with drinks and snacks, we’ll be announcing our annual year-end awards for our prestigious originators. Will you be the next award winner? Join us to find out.

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The party starts at 8PM PT on Monday night. 

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To register for AAPL, head over to their conference page. 

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If you’re interested in attending our party, awards ceremony, or dinners, reach out to us here! ‍And if you want to book a private meeting with one of our general managers, please schedule a time here. 

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See you in Vegas!

As PeerStreet’s content marketing manager, I get the opportunity to work with lots of people across the organization. When I need to know something, I feel like I have a large swath of resources… subject matter experts from all walks of life... tech gurus, seasoned former brokers, even real estate investing virtuosos who have been working in the industry since before I learned to tie my shoes (full disclosure: velcro was clutch for me until at least the first grade).

So, when PeerStreet announced it was relaunching its Multifamily Loan Product, I knew I needed to track down one of these experts to tell me everything (okay not everything, but a lot) about the state of the multifamily market. 

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Enter industry expert Tom Hallock.

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A Zoom encounter worthy of a blog post

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I had heard great things about Tom Hallock, PeerStreet’s Head of Loan Products, but hadn’t had the chance to connect with him until the multifamily relaunch surfaced. His resume is impressive to say the least — here’s his LI page so you can see for yourself — and if I’m being honest, I was a bit nervous about our call. 

Needless to say, about 30 seconds into our conversation my fears subsided. Not only is Tom a seasoned vet in the multifamily loan space, he’s also a genuinely nice guy (and his son is the first American to win the Champions League in Water Polo AND is a two-time Olympian for the USA!).

Tom explained trends in the larger market, PeerStreet’s decision to relaunch its multifamily product, and he even shared some interesting ways to view multifamily unit ownership. Here are some excerpts from our conversation —

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Tom, as Head of Loan Products, what can you tell me about PeerStreet’s decision to relaunch a multifamily loan product? Was it driven by a larger market trend, or something internally?

Primarily, it was driven by our internal market trends and the types of business that our partners do, and want to do. 

We believe in a multifamily loan product offering, but in light of Covid, we wanted to make sure that we understood what the larger market was doing. And we wanted to see if the multifamily market was going to take a significant value hit. 

Once it became apparent that the multifamily market was going to continue to be a strong product offering — and we saw that investor appetite for real estate investing had rebounded strongly from the earlier stages of Covid — we decided to relaunch our Multifamily Bridge Loan Product, hiring Multifamily General Manager Jon Spelke to manage and run the program.

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Is the relaunch any different from the original program?

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It is somewhat different in the fact that we elected to bring out a bridge product first. We did this, in part, because there was a lot of demand from our retail investors.

We also took a hard look at the lessons we learned from our first iteration of multifamily offerings, deciding to focus on internal valuation, making sure that we really understood the business plan of the intended borrower for each multifamily loan PeerStreet decides to fund or purchase.

In many areas of the country, we saw a Covid-related exodus from cities into suburbs. Yet, according to CBRE, multifamily properties have “stood up to these economic shifts — better in fact than recessions past.”

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So, how does this reconfiguration of where America lives (and rents) impact the multifamily market?

Multifamily is a really interesting market segment — one of the things we have to recognize is that there’s a severe housing shortage in our cities. So, even if cities like New York or San Francisco take a temporary hit, there’s still a big need for multifamily dwellings. 

And with the new work-from-home revolution, we’re seeing borrowers reconfigure spaces, upgrading to meet new tech demands, and shifting space layout requirements. 

The market will always morph and change, but I think those types of improvements — for example, carving out spaces for dwellers to use a little bit differently — make multifamily units attractive to renters and owners alike.

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Thinking about multifamily dwellings (and loans) differently

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Tom wrapped up our conversation by explaining a classic multifamily scenario...

Picture a small apartment building with the opportunity to service seasonal workers — landing somewhere in the middle of short term and long term — this is a place for doctors, nurses, teachers. Or, seasonal workers who support restaurants and resorts. This type of dwelling becomes especially viable when we start thinking of today's environment where people can work from anywhere. 

Want to see what life is like in a cute Colorado mountain town? Rent an apartment for a month and try it out...

The problem is the long-term finance market doesn’t like this type of arrangement. They want one-year leases, they want the security of long-term occupants. That’s where private lenders and alternative lending platforms like PeerStreet come into play. We give the market — originators and their borrowers — alternative and flexible options that are applicable to what’s happening right now.

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At PeerStreet, we’re progressive, so we can adjust to what's happening around us. 

And that’s how Tom wrapped up our conversation, summarizing why we do what we do at PeerStreet.

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Our goal

Our ultimate goal at PeerStreet is to help investors build wealth while helping property owners rebuild and rejuvenate homes and communities. By providing an accessible platform for originators to increase their loan volume, we can help real estate entrepreneurs reverse the decay of aging housing across the United States. PeerStreet’s Multifamily Bridge Loan Product was created to empower originators, borrowers, and investors to meet (and possibly exceed) their financial goals and needs. 

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Want to learn more about PeerStreet’s Multifamily Loan Product? Originators can get started here, investors here. 

About the Author‍

Katie Knox is PeerStreet’s Content Marketing Manager. With over a decade of professional writing experience, she’s written everything from product descriptions and websites, to screenplays about killer robots. When she’s not creating all things content, she can be found picking up heavy things and putting them down again for fun. 

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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. 

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?

General Manager, Single Family Investor Lending. I manage the existing products and hope to bring a fresh perspective to the company. My goal is to help improve processes and develop new products for real estate lenders, their clients and investors in the space.

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What did you do prior to PeerStreet?

I have been in the real estate and mortgage banking industry for 26 years. I started my career on the back end of the business, handling REO (real estate owned) properties for mortgage servicers. I worked as an Asset Manager for Homecomings Financial (GMAC special servicing) and then moved to Ameriquest handling their REO portfolio as the REO Manager. While at Ameriquest I changed roles to VP of Loss Mitigation and led a department to handle short sales. My most recent role was as President of Aegis Funding, a private money lender and lending partner with PeerStreet. I hope that my experience lends itself well to my role here at PeerStreet.

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What do you think makes PeerStreet unique?

 It’s the disrupter mentality and culture. I have been a part of many lending and mortgage servicing institutions where the typical culture is rigid and stuffy and new ideas are typically not welcomed. PeerStreet has a unique structure where everyone is accessible and new ideas are not only welcomed they are required. 

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

Intelligent, driven, unwavering 

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What is the most rewarding part of your job? 

Looking up from a day of hard work and seeing how my impact made a difference, generally it’s in the numbers! 

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

Spending time with my wife and three daughters doing outdoor activities. I love mountain sports such as hiking, mountain biking and snowboarding. In the winter of 2019/2020 I logged 29 days on the slopes and 100s of miles on my mountain bike. I also consider myself a fair weather surfer. 

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Define yourself in three words. 

Observant, determined, and focused

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