Experiment: PeerStreet

The PeerStreet Experiment

In March, I started my PeerStreet experiment with a deposit of $10,000. PeerStreet is a marketplace where accredited investors can invest in private real estate loans. They met my experimental criteria because of their automated investing solution and claims of “less risky” investments backed by real estate. They make bolder statements than RealtyShares (read about my experiment with them here) which I respect and appreciate as an investor:

peerstreet vs. lendingclub

What I liked about PeerStreet started with their impressive management team and advisors. Their staff is not your typical dime a dozen startup. Their loans have first liens backed by real estate with shorter duration (6-24 months) and lower LTVs (typically below 75%). Everything from start to finish made PeerStreet a perfect fit.

My experiment is to evaluate PeerStreet against both Lending Club and RealtyShares through cyclical markets with the goal to move them to my cash flow portfolio.

Investment Strategy

I set my account up for automated investing for a more hands-off investing style. Like most of my investments dealing with lending, I prefer senior loans and loan terms under 12 months. I’ll be using the following investment criteria:

peerstreet experiment Automated Investing Strategy

Account Details (as of March 2017)

PeerStreet account details

 

Historical 

peerstreet experiment earnings history

Updates

[Mar ’17] Opened account and deposited $10,000 and turned on automated investing.

 

 

Note: I have no affiliation with PeerStreet and do not benefit financially if you invest with them. This page and all others on the site are intended for informational purposes only.

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