Just into PeerStreet for a couple months now. Seems like a cool place to be. Anybody have any experiences?
I joined PeerStreet in December, 2016 and like it a lot. I've stopped reinvesting in LC notes, slowly shifting capital to PeerStreet.
LINK FOR 1% YIELD BUMP:
Join PeerStreet
Yes. i have been in Lending Club and Prosper for about 3 years now. I have been invested at Peer Street for about 8 months, with two accounts, one is an IRA. I invested about $20k each. YTD returns are about 9.6%. I invest typically in notes with rates at 9% or more, I have had some 11% notes, but those seem to be far and few between. I also limit my note terms to less than 12 months.
as far as i am aware, Peer street has not had any note defaults since inceptions. I have about 15 notes in each account currently and I have had about 5 or 6 notes that have been paid off. I look at Peer Street, and Lending Club and Prosper as just being another way of diversifying investments. I really like Peer Street as I don't get frustrated like I do with lending Club and Prosper over all the loan defaults. Actually, Peer Street is almost boring compared to Lending Club as you really don't have to do much once you become fully invested. At $1,000 minimum per note vs $25 with Lending Club, and with no defaults so far under Peer Street, you just sit back and collect your interest each month. You can set up automatic investment filters so that if a note does get paid off, and some get paid off early, then your dollars get re-invested. Also by referring family and friends, you can receive a one time 1% interest rate bump for your next note investment. Also, Peer street gives you a one time investment bump on your Birthday too. I have a couple of 12% notes due to the 1% bumps. So, I have had nothing but good experience with Peer Street. I like the returns, I like the fact that I see no defaults (so far) and it fits into my diversification strategy.
http://www.peerstreet.com/join?ref=3e4rb4a
Couple months into PeerStreet and I have 11 "notes" at $1000 each. One of them appears like it has not received payment and is past due by 7 days. Have you had that kind of thing happen? Of course it is nothing like Lending Club, but still do not like to see it.
Peerstreet has had defaults
7-30 days late is not so rare unfortunately, but they typically catch up (how often they ending up having further payment issues is yet to be seen)
I'm very impressed with PeerStreet. I researched them for a couple of weeks and just recently their automatic system placed me into an investment (loan) that I'm very happy with. My first loan has an APR of 9.5% plus I get another 1% bump (because a friend gave me a referral link) for a total return of 10.5%! This investment has a low LTV of 61%, which I like.
I asked PS customer service what would happen to my principal $ if they went out of business and he replied "PeerStreet is set up as two companies. I work PeerStreet Inc. which is our operating company. It pays all the expenses of the business. We also have a bankruptcy remote special purpose entity called PeerStreet Funding LLC (PSF). PSF holds all the notes and its sole purpose is to service loans and pay interests and principle back to investors. If PeerStreet Inc. were to go out of business for any reason, a springing member would be activated (we pay a monthly premium for this, think of it as an insurance policy) who's sole responsibility would be to continue servicing the existing loans and return capital back to investors".
Referral link for 1% yield bump:
https://www.peerstreet.com/join?ref=hadmf6
I don't have any firsthand experience with PeerStreet, but judging solely from the number of guys showing up here to post their "bump" links, this '1% return bonus' marketing program that they have is incentivizing the shit out of people. Other platforms/institutions should take note of that...
Yes, the 1% bump in yield is smart of PeerStreet, they get a lot of advertising for very little $. I believe the 1% program is scheduled to end in a few months.
Update from PeerStreet about their one foreclosure (Venice Beach):
"Yes, the Venice property was paid in full last week. We were able to recover all principal balances as well as pay some accrued interest over the time period."