Peerstreet looking good to me

[JohnnyP]

I have been into Lending Club for six years now. Now I am looking to diversify more. I am looking at peerstreet and it is looking very intriguing to me. It is crowdfunding into real estate bridge loans. Does anybody have experience in this area?

[Peter]

I, too, am interested in keeping an eye on the growth of the P2P real estate (consumer&commercial) platforms.

Perhaps we'd have more discussion/information on those with a sub-forum category just for P2P real estate...?

Ryan?  Peter?  I know Fred93 plays with those guys, too, so, we'd be assured of long analyses and charting.  https://forum.lendacademy.com/Smileys/default/smiley.gif" alt=":)" title="Smiley" class="smiley" />

[reidy83]

If you are looking into some good analysis of the major players in Real estate P2P sites, visit the site below:

https://investorjunkie.com/reviews/crowd-investing/" class="bbc_link" target="_blank">https://investorjunkie.com/reviews/crowd-investing/

If interested in getting feedback on specific opportunities at these sites from people who invest in this market go to:

https://www.biggerpockets.com" class="bbc_link" target="_blank">https://www.biggerpockets.com

I have been investing in this market for almost 4 years now with much better returns then Prosper and LC. If you are looking purely for bridge loans, Lending Home has better investor returns and higher inventory then Peer Street(must be an accredited investor). If you want a site that provides a mix of debt, equity, consumer and commercial loans,  then Realty Shares is the destination. Interested in REIT's.... Fundrise and Realty Mogul have transitioned in the past year to these platforms. Lastly, if you want someone else to do the home work and provide diversification across many P2P real estate sites then visit Alphaflow.

The great thing about AlphaFlow is they allow one to synch the data from multiple P2P sites at their site so you can see a visual dashboard of all of your Crowdfunding activity.

Good Luck

[RyanL]

https://forum.lendacademy.com/index.php?topic=4222.msg39056#msg88888888Quote"> from: nonattender on December 16, 2016, 07:44:28 PM

[Zach]

https://forum.lendacademy.com/index.php?topic=4222.msg39093#msg88888888Quote"> from: RyanL on December 22, 2016, 02:10:44 PM

[hambling]

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.

[twigster]

I have been investing in peerstreet since August of 2016 and started using there autoinvest tool in December of 2016.  Since that time I have invested in 25 deals (1 for 5k and the others for 1k each).  I was disappointed by the number of late payers that popped up in the batch of December loans.  Out of 23 loans, 5 were late pays by end of Feb.  Of the 5 lates one is not current and the other 4 are still behind in interest payments.  I would say out of about a dozen deals at other real estate debt sites I have had no late pays.  Since getting hit with these all near the same time I have decided to stop investing in peerstreet (for the time being) and see how the loans iron themselves out.  There are a lot of these sites that so far have 0% loss of principal (because of booming real estate market, lack of deals completed), but excessive late pays would be the canary in the coal mine for me. 

Also noticed that with the peerstreet website it is harder to see lates as compared with other sites.  Other sites tend to show a 'last paid' column or other indicator of whether the loan is current or not on the summary page, for peerstreet you need to see if there is a comment on the loan, or click on each loan to check the last payment date.

[TravelingPennies]

Here is another update on peerstreet.  Notes on peerstreet are deemed 'late' if the payment for the specific month is over two weeks late.  Those considered late get a comment posted to the position that states the following:  'Borrower payment not confirmed. PeerStreet is in contact with originator and servicer.'
So now on April 4th there have been a series of loan payments made and posted as of April 3rd, many are for the period of March, but some of for February.  Those now paid through February 28th will not be deemed late until the middle of this month, (April 16th).

So here is my experience with late payments across all sites I have dealt with as follows:
total number of loan experiences (either current or paid off)/total ever late payments/total current lates
realtymogul: 1/0/0
patchofland: 3/1/0
realtyshares: 2/0/0
fundthatflip: 5/0/0
lendinghome: 18/1/0
peerstreet: 26/7/1

Note that peerstreet seems to have a higher incidence of lates, although this is based on a small sample size. 

One other thing; most of these sites boast zero loss of principal.  I had a conversation with fundthatflip as a fairly representative example asking for stats on their entire loan book.  Of all the loans they had done 5% had gone past the due date (default), of that 5%, 2.5% were still making monthly interest payments, this is about in line with other sites I have looked at.  Because of fees built in to the collection process they normally make money on defaulting loans so there has yet been no loss of principal (for any of the sites), but yet it is early days for realty based p2p sites.