New pilot program unlocks liquidity on investments in real estate loans
LOS ANGELES, Calif.-- November 2, 2021-- PeerStreet, an award-winning platform that digitizes fractional investing in real estate loans, today announced PeerStreet’s Secondary Marketplace. This development is an important milestone for the company and the industry, as it will enable investors to sell their existing, fractional positions in loans, increasing liquidity and flexibility in a currently illiquid asset class.
PeerStreet’s Secondary Marketplace launched today as a pilot program. The ability to sell fractional positions in loans has been one of the primary requests from investors, as this allows them to have more flexibility and adjust their portfolio in alignment with their investment goals. While this feature is initially focused on select loans, it is a first step in fulfilling a much broader vision of enabling people to trade in and out of real estate debt investments just as they do with stocks.
“This pilot launch feels like a ‘one small step for PeerStreet, one giant leap for the industry’ type of moment,” said Brett Crosby, CCO and co-founder of PeerStreet. “We believe making real estate debt as accessible and easy to trade as stocks will have large ramifications on the industry and open up more avenues for wealth creation for market participants.”
Investments in loans on PeerStreet’s platform are typically 6-36 months in term and, until now, investors have been locked into the investment until the loan is paid off. The firm has seen an increase in customer demand for liquidity and flexibility. This desire was further demonstrated with the launch of PeerStreet Pocket, an alternative to low-yielding banking rates. Pocket has proven very popular with investors in part because it is more liquid than other PeerStreet investment products.
“This is just the beginning of what this feature can become,” said Brew Johnson, CEO and co-founder of PeerStreet. “If we can build a robust secondary marketplace where investors can buy and sell digital assets tied to real estate loans, it may end up having a significant impact on our entire industry.”
PeerStreet investments are available to accredited PeerStreet investors, with as little as a $1,000 initial deposit. Learn more at www.PeerStreet.com.
PeerStreet is a technology platform that democratizes access to real estate debt investments. The company’s unique technology-driven marketplace enables investors to diversify their capital in a fixed-income asset class that had previously been difficult for individuals to access.
Loans are sourced from vetted private lenders throughout the United States who often have regional real estate expertise and long-term borrower relationships. PeerStreet enables these lenders to expand their lending capital, empowering them to make more loans, which flows through to borrowers who in turn improve their local communities—one house at a time. As of March 2021, PeerStreet has had over $4 billion transacted on its platform. PeerStreet was founded in 2014 and is backed by such renowned venture capitalists as Andreeson Horowitz, World Innovation Lab and Thomvest.