PeerStreet Review: 2023

What Is PeerStreet?

PeerStreet is a real estate crowdfunding platform that showcases private loan investment opportunities to accredited investors.

Founders Brew Johnson and Brett Crosby created PeerStreet with a vision for a more transparent way to invest from start to finish. After watching the 2008 financial crisis unfold, the founders sought to create a more robust system based on transparency for investors.

The platform enables private credit investments in deals with different yields, terms and loan-to-value (LTV) ratios. Available properties may be residential or multi-family offerings. In any situation, all the details about the given opportunity are easily available on the website.

Investors can select offerings that align with their investment goals to create a portfolio that reflects their goals.

How Does PeerStreet Work?

The entire process begins when a borrower needs short-term loan financing to improve a property for sale or rent. The need for capital forces these entrepreneurs and real estate investors to seek a loan from a private lender.

At this time, a lender from the PeerStreet network is taking steps to provide funds. From there, the lender will submit the loan to PeerStreet for review. If the loan meets the quality and demand criteria, it will be published on the platform. As new offers become available, PeerStreet posts them to the site every weekday at noon (Pacific Time).

Once an opportunity is published on the platform, PeerStreet investors can select the loans they are interested in funding. You can make these choices by exploring options or setting up automatic contributions. With automated investing, PeerStreet will reserve your spot in investments that meet your criteria as soon as an offer is available. But you will have 24 hours to consider the opportunity before committing your funds to the deal.

The final leg of the journey begins after the loan is funded. The PeerStreet team will take care of the loan throughout its lifecycle. As payments are collected, the platform will distribute funds to investors through their PeerStreet account. But if the deal goes wrong, the team can be thrown into a scramble to recover as much as possible for the investor.

Importantly, investors should expect their funds to be tied up for the life of the loan. You will find short term loan opportunities starting from one month. Although the capital will be unavailable for the entire term, you will receive the interest payment on the 1st and 15th of each month.

Investments can be inflexible, but there is potential for above-average returns. PeerStreet can offer investments with an average APR of 6% to 9%. This is because borrowers are willing to accept higher interest rates to secure quick access to capital.

PeerStreet Pocket

PeerStreet Pocket is an additional option for investing on the platform. Unlike other investment options on the platform, Pocket is not directly linked to credit. Instead, the product allows investors to earn interest on their available cash.

With Pocket, you can withdraw your funds once a month. Based on the latest information, PeerStreet Pocket users can earn 2% annual interest.

Self-Directed IRAs

If you're interested in a self-directed IRA, PeerStreet offers this option. You can set up your self-directed IRA through PeerStreet to invest in real estate within the account.

Although this option is not suitable for everyone, it may be right for accredited investors on the PeerStreet platform.

PeerStreet Pros and Cons

These are the pros and cons to consider before working with PeerStreet.


Passive income potential from real estate investments
User friendly platform
Low minimum investment ($1,000)
A self-directed IRA is available
PeerStreet Pocket offers cashback


Accredited investors only
illiquid strategy
Limited offers
Not an accredited investor? Check out Fundrise.

Who Can Invest With PeerStreet?

PeerStreet only allows accredited investors to work with the site. To be considered an accredited investor, you must have a net worth of over $1 million (excluding primary residence). Or have income of $200,000 in the last two years or $300,000 if married filing jointly.

Based on those numbers, it's likely that many new investors won't be able to work with PeerStreet.

PeerStreet Minimum Investment and Fees

PeerStreet allows investors to start with as little as $1,000. This is a relatively low barrier to entry, given that all investors must be accredited.

Fees associated with your investment on PeerStreet can add up quickly. The exact fee will vary depending on the individual investment. But fees can range from 0.25% to 1.00%. You will see a disclosure about the fees for any investment before anything is finalized.

How Do Investors Make Money?

Investors can earn money with PeerStreet in two ways:

First, you can earn income for your uninvested cash on the platform through PeerStreet Pocket. Cash held is FDIC insured up to $250,000.

However, the most interesting way to earn money through the platform is to invest. When you invest in a private loan, the borrower must make the monthly payments on time. As these payments are made, you will receive your portion of the payments in your PeerStreet account.

If things don't go as planned, the borrower may default on the loan. In that case, the PeerStreet team will work to protect investors' interests and quickly maximize profits. Keep in mind that it is absolutely possible to lose money on these investments because the funds are not FDIC insured.

Is Real Estate Debt Right for Me?

Investing in real estate debt may be the right move for your portfolio. But like all investment decisions, the answer will vary greatly depending on your goals.

If you're hoping to create a relatively passive stream of income, real estate debt can be a smart choice. But if you don't like the risks involved, you can look at other investment options.

Am I still deciding? Look at REIT vs. Real Estate Crowdfunding. which is better

Biggest Difference Between PeerStreet and Other Platforms

Unlike many other real estate crowdfunding platforms, PeerStreet does not offer standard real estate investment trusts (REITs). Instead, the platform is designed for accredited investors to create a personalized portfolio based on their individual needs.

With PeerStreet, you will be limited to private credit investments. But it might just be what you're looking for. If you prefer REITs or are not an accredited investor, there are many other real estate crowdfunding sites.

They want more. Take a look at all the best real estate crowdfunding sites.


PeerStreet offers accredited investors access to private credit investments. A relatively low minimum investment allows you to try your hand at this potentially profitable machine.

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