The burgeoning peer-to-peer lending platform PeerStreet has unveiled product updates that enable investments of only $100.
The company recently announced it’s lowered the minimum investment to $100 for “small balance reinvestments” when using its automated investing product. The upgrade also expands the investment types available for automated investing to include cash offer loans and 30-day notes, which offer shorter terms than typical bridge loan investment options, the company said.
“Our goal at PeerStreet has always been to level the playing field between Wall Street and Main Street,” the company said in its announcement. “We’re here to help more people get access to the investments they want. These automated investing changes are just one of the ways we’re helping you create a personalized, diversified portfolio.”
PeerStreet created a peer-to-peer marketplace for high-net-worth individuals that brings lenders and investors together. Based in El Segundo, California, the company originated a whopping $1 billion in debt-based financing during 2018. The banner year pushes PeerStreet past $2 billion total in real estate lending since its launch in 2013.
The fast-growing firm now hosts thousands of users that are actively investing on the platform alongside institutional investors. Loans listed on the platform are vetted by private lenders, and then again by PeerStreet’s own team by using big data and market research. PeerSreet then offers detailed information on each loan, priding itself on transparency and user-friendly experience, the company said.
PeerStreet is among many growing proptech firms in the United States. Proptech — or property technology — refers to a group of tech-oriented businesses that are developing innovations for various aspects of the real estate industry. While a broad field, proptech can include products or services for homebuyers and sellers, smart-home devices, office administration, building management, marketing, construction, and even city-planning.
Below is a quick video explaining how the platform works.