PeerStreet Expands Product Line with Residential for Rent Loans
LOS ANGELES--(BUSINESS WIRE)--Mar 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.
PeerStreet is an award-winning investment platform that democratizes access to real estate debt investments. The company’s unique technology-driven marketplace enables accredited investors to diversify their capital in a fixed-income asset class that had previously been difficult for individuals to access.
Residential and commercial property loans are sourced from vetted private lenders throughout the United States who 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. Backed by noted venture capital firms including Andreessen Horowitz, PeerStreet was founded in 2013 and has had over $2 billion transacted on the platform as of March 2019.
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