The surging proptech firm PeerStreet reported impressive performance and growth in 2018.
The online real estate marketplace, based in Manhattan Beach, California, surpassed $1 billion in investments during 2018. The banner year pushes PeerStreet past $1.7 billion total in real estate lending since its launch in 2013.
“We have created a technology platform to empower lenders to make loans to borrowers in their communities. It’s about developing a more efficient way to provide capital to real estate industry participants,” PeerStreet CEO Brew Johnson previously told Think Realty. “Our idea was to create a platform where high-quality lenders of any size could access both cutting-edge technology and capital in a way that allows them to compete with major financial institutions and truly level the playing field. And those lenders, in turn, provide capital to real estate entrepreneurs and investors that enable them to buy, build, and fix up properties.”
The company now hosts thousands of users that are actively investing on the platform alongside institutional investors. The loans listed on the PeerStreet platform are vetted by private lenders, and then again by PeerStreet’s own team by using big data and market research. PeerStreet then offers detailed information on each loan, priding itself on transparency and user-friendly experience, the company said.
The company’s growth creates a “virtuous cycle,” it said in a recent blog post. With more loans comes more data, which provides valuable insight that improves its services, PeerStreet said.
“More loans allow for stronger diversification and more data, which in turn can improve underwriting and bring even more opportunity to the ecosystem,” PeerStreet wrote. “This volume also has a great impact within the communities that are being transformed through the work of hundreds of lenders and thousands of real estate entrepreneurs in our network. By improving communities one house at a time, local lenders can more effectively bring material change in neighborhoods throughout the country.”
Despite its seemingly winning formula, the company isn’t getting complacent. In 2018 it rolled out a variety of improvements to enhance the quality of its services, including refinements to its credit box and new loan products to further support investor diversification. Investment options on PeerStreet now include single-family residential, multifamily, commercial, cash offer loans, and 30-day notes. PeerStreet also launched recurring deposits and improved sorting options on your investor dashboard to make its platform more accessible.
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 PeerStreet works.