The principle behind of a good investment is to have a passive income. That you need not to work hard just to earn for money but you let your money works for you. Among all investment Real estate is still a champion for a solid Investment. With its high yielding return that everybody dreams of.
But Real Estate investment is expensive. And can be tough to crash because to its typically high stakes. This is where the Peerstreet platform come to the rescue! It allows you to Invest in a Real estate business for as low as $1000 initial investment.
Sounds great! right?
Yes, it’s true!
The cool thing is PeerStreet is open for all who loves to invest and seeks to get the best out of real estate business. That will qualify as an accredited investor.
Allow me to explain to you what PeerStreet is.
PeerStreet is an investment marketplace that was founded in 2013. This was organized by these great men: Atty Brew Johnson in Real Estate; former Google executive Brett Crosby. And Ex Y Combinator alumnus Alex Perelman, the company based in El Segundo, California.
PeerStreet is an online, peer-to-peer crowdfunding platform for real estate deals. The platform is often for real estate investors, who are looking for financing. And also for those who are looking for above average return for their investment.
It is like other Peer-to-peer platforms. If you are familiar with Lending Club, Prosper, and Sofi, then you have a wide idea of what is PeerStreet all about.
The only unique about this platform compared to the above mention P2P platforms:
PeerStreet supplies financing for real estate business deals. While others provide personal loans to individuals.
So how does PeerStreet operates?
PeerStreet operates a bit different from other crowdfunding real estate platforms. They don’t necessarily originate new loans on the site. But they get a loan from existing private real estate lenders. Afterward, they make those loans available to individual investors. As an investor, you have to choose freely what loans you want to invest in.
The platform performs an extensive vetting process on each loan. Before making them accessible to investors. The vetting process involves a thorough and diligence screening of a loan.
PeerStreet will conduct the investigation too. Both the lenders who make loans and the loans themselves.
PeerStreet investors Average Return of Investment rages between 6% to 12% per annum. That means that it makes them yield a higher quality income versus other P2P platforms.
PeerStreet accepts minimum Investments of $1000 for accredited investors only. That investor income which meets the specific condition such:
- as earning in excess of $200,000 per annum.
- a net worth exceeding of $1 million in bank or insurance company or business development company.
The available types of investment accounts in PeerStreet offers a regular investment account as well as self-directed traditional and Roth IRA.
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Some value of PeerStreet platforms
- PeerStreet offers minimal Investment for as low as $1000. Unlike other investment, platforms require up to $10,000 up front.
- Your Investments is on a short-term basis, tied up for only two years
- You have many ways to diversify your investment across many different loan notes. In a relatively small amount of money since the small investment is only $1000.
- Reinvestments are Easy and convenient. Once your investment pays off, you can put your income to another loan with minimal effort.
Disadvantages of PeerStreet
- The Investment in loan notes are not liquid
- The only accredited investor can participate on the platform.
Verdict
PeerStreet is the best platform for the accredited investor to take part in real estate. With an investment with at least $1000 least investment. But even if the initial investment need is low this business. It will not guarantee to work for most investors and definitely not for small investors.
REFERENCES
PeerStreet real estate investment platform
INVESTOR BULLETIN: ACCREDITED INVESTORS
