PeerStreet launches secondary market to increase investor liquidity
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LOS ANGELES–(COMMERCIAL THREAD) –Peer Street, an award-winning platform that digitizes fractional investing in home loans, today announced PeerStreet’s secondary market. This development is a significant milestone for the company and the industry as it will allow investors to sell their existing fractional positions in loans, increasing liquidity and flexibility in a currently illiquid asset class.
PeerStreet Aftermarket was launched today as a pilot program. The ability to sell fractional loan positions has been one of the main demands of investors as it allows them to have more flexibility and to adjust their portfolio according to their investment objectives. While this feature initially focused on selected loans, it is a first step in realizing a much larger vision of allowing people to trade real estate debt investments just as they do with actions. This innovative secondary market for real estate debt connects buyers and sellers ââ increasing liquidity and encouraging transparent exchange of investments held on PeerStreet.
âThis pilot launch feels like a ‘one small step for PeerStreet, one giant leap for the industry’ type moment,â said Brett Crosby, CCO and co-founder of PeerStreet. “We believe that making real estate debt as accessible and easy to trade as stocks will have big ramifications for the industry and open up more opportunities for wealth creation for market participants.”
Loan investments on PeerStreet’s platform typically last 6-36 months, and so far investors have been stuck in investing until the loan is paid off. The company has seen an increase in customer demand for liquidity and flexibility. This desire was again manifested with the launch of PeerStreet Pocket, an alternative to low yield bank rates. Pocket has proven to be very popular with investors in part because it is more liquid than other PeerStreet investment products.
âThis is just the start of what this feature can become,â said Brew Johnson, CEO and co-founder of PeerStreet. “If we can create a strong secondary market where investors can buy and sell digital assets related to home loans, it could end up having a significant impact on our entire industry.”
PeerStreet Investments are available to PeerStreet Accredited Investors, with an initial deposit of only $ 1,000. Learn more about www.PeerStreet.com.
ABOUT PEERSTREET
PeerStreet is a technological platform that democratizes access to investments in real estate debt. The company’s technology-driven single market allows investors to diversify their capital into a fixed-income asset class that was previously difficult for individuals to access.
Loans come from approved private lenders across the United States who often have regional real estate expertise and long-term borrower relationships. PeerStreet enables these lenders to increase their loan capital, allowing them to make more loans, which is passed on to borrowers who, in turn, improve their local communities, one home at a time. As of March 2021, PeerStreet had completed more than $ 4 billion in transactions on its platform. PeerStreet was founded in 2014 and is backed by renowned venture capitalists like Andreeson Horowitz, World Innovation Lab and Thomvest.
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