Los Angeles, CA, March 20, 2019 -- PeerStreet, a platform for investing in real estate backed loans, today announced the launch of a new loan product for private lenders: Residential for Rent loans. Residential for Rent loans have a 30-year term so borrowers can secure long-term financing for residential rental properties. This launch is in response to key market conditions: as more people struggle to finance buying a home, the rental market has continued to grow.
Because of the longer-term nature of Residential for Rent loans, PeerStreet is currently offering investment in this product to its pool of institutional investors—a group with a proven appetite for this asset class. For PeerStreet’s network of private lenders, this presents an opportunity to do more business with their borrowers, in addition to attracting new customers who need long term financing rather than short term bridge loans.
“We’re very excited to be expanding our marketplace by offering Residential for Rent loans. This is a natural progression for us as a company as we increase our volume of transactions with institutional investors,” said Brew Johnson, co-founder and CEO of PeerStreet. “Our move into this asset class is important to continue to support the growth of our private lending partners and help them better serve their borrowers.”
With this product launch, PeerStreet takes a big step in developing an even more robust real estate marketplace, expanding its reach beyond short-term bridge loans. The company is not only introducing this product to an active audience, but they are continuing to position its platform for even more growth in 2019.
“Supporting this new product is incredibly valuable for the PeerStreet marketplace as a whole,” said Brett Crosby, co-founder and COO of PeerStreet. “More lenders means more loans, which makes it easier for investors to diversify their portfolios. That benefit brings more investor demand, and in turn, enables lenders to attract more quality borrowers. It is a virtuous cycle that builds upon the platform and enriches the marketplace.”
PeerStreet developed its platform to enable expansion across many loan types, beginning with Residential Bridge loans, expanding to Multifamily Bridge loans, Small Balance Commercial Bridge loans and now, Residential for Rent loans.