PeerStreet

About PeerStreet

PeerStreet is a private real estate lending platform based in El Segundo, California. They do not typically make loans directly to investors, but rather they source loans from local investors and offer a secondary market for funding these loans. Investors on this platform usually earn a return between 6% and 9% on their investment capital. Loans generally range from 6 months to two years and they maintain conservative loans-to-value (LTV) of about 75%.

Loan Types Offered: Hard Money Loans, Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Mixed Use, Warehouse, Industrial

Areas Served: National

Licenses: CA Bureau of Real Estate - Real Estate Broker License No. 01984664, California Finance Lenders License 60DBO-45398

Lending Guidelines for PeerStreet

Below are the general loan guidelines published on the PeerStreet website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by PeerStreet.

Loan Example 1

Peter takes a loan from PeerStreet in order to rehab a condo to flip in Colorado Springs, CO. The price of the property is $340,000. The loan-to-value (LTV) on the loan is 85%. This means that Peter will need to bring 15% of the purchase price to the closing and the principle amount will be $289,000 on the note. The note is interest-only, with monthly payments, and is for 18 months at 10% interest with 1 origination points paid at the closing.

By the parameters of the loan, Peter will be required to contribute a $2,890 origination fee in addition to 15% of the purchase price, or $51,000, since there is a 85% LTV. The monthly interest-only payments will then be $2,408 to PeerStreet. If Peter meets his goal of a $510,000 sales price at the end of the loan term, he would earn a total profit of $123,760 after repaying the principle and subtracting the cash he brought to closing, the origination points, and the total monthly interest payments.

Loan Example 2

Curtis takes out a private money loan from PeerStreet in order to rehab a house to flip in Portland, OR. The loan has the following parameters:

$290,000 purchase price
50% loan to value (LTV)
12 month term
13% interest rate
2% origination fee

Curtis intends to sell the property at the end of the term for $377,000. If he succeeds, the deal numbers would be as follows:

$377,000 sales price
- $145,000 principle (50% LTV)
- $145,000 cash paid at closing (50% on 50% LTV)
- $2,900 origination fee (2% of the $145,000 principle)
- $18,850 total interest paid (12 months x 13% interest)
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= $65,250 gross profit (doesn't include taxes or rehab costs)