Just made my first investments in Peerstreet and Realtyshares

38 Replies

Hello everyone.

Just made my first two investments with crowd source funding websites Peerstreet.com and realtyshares.com

I will keep everyone updated on how they do.

Here are some details-

Peerstreet - 1st lien position- 10% return on a property in Stockton NJ. Fix and flip loan for 9 months. $5k invested. 10% return includes 1% bonus for being referred.

Realtyshares - 2nd lien position - 9% return with another 4% when the property sells. 6 months with option for 3 additional months.

Thanks for following.

Best of luck! 2nd lein is a subordinate position so make sure you're well compensated for that risk.

Lately the number of defaults happening around the debt platforms have been going up and this is on even senior debt. You can do quick search and see other's experiences.

RealtyShares is okay. Was a big fan until this last season where they screwed up the tax forms and it was a nightmare to chase corrections down so just watch out for that.

Good luck!

@Kevin Allen If I was you I would at least go set up an account at RealtyShares. It has a 30 day cooling off period per SEC rules. You get $100 for setting up your account and linking your bank account. No investment necessary to get the $100.

@Jon Crosby RealtyShares is regulated by the SEC so the have a thirty day cooling off period after you sign up. You also need to make $200k per year or have over $1 million in assets without your primary residence. This is all self reported.

PeerStreet asks the same type of questions when setting up but there is no cooling off period as the investments are lower as are the projects it seems. Peerstreet does have Automatic Investing and you set the criteria which is great.

Hope that helps.

I can add that i've had good experiences with Patch of Land for Loans/Debt where I did almost all of my RECF investments, and to a lesser extent Realty-shares for Equity. 

I'm generally more inclined to invest in 1st lien Debt for the Liq pref - You give up a wee bit of upside (unless there is a default with a low LTV through which you can get a nice interest rate pop) but sleep better at night knowing you have the security of the Liquidation Pref. I like Patch of Land because they are the original 'specialists' in Real Estate debt and have been doing it for longest. I also like that they are well capitalized and offer a 'Bankruptcy Remote' legal structure that better protects your funds. I've had quite a few investments (well over 10) though them and all have paid on time / or fully repaid principle. (a few were extended by several months, but I received extra extension fees)

Realty shares seems to have a very nice collection of RE Fund Managers who have developed a nice fix-up& flip program using preferred Equity that has worked out nicely. Paid on time, came in on-time & on budget (very rare for too many developers) and repaid in full. I should add that I would much rather invest in RE Equity / Preferred Equity (despite all the risks) than in 2nd Lien Debt because at least with equity you have the chance of participating in the upside and can potentially earn greater than 19 or 20% (sometimes...) for what amounts to, IMHO, a similar amount of liquidation preference / default risk.

Peer Street is a relative newbie player in this game so I havent tried them yet / have no opinion except to say that I notice their projects seem to pay a helluva lot less in APR % for what amounts to the same risk as POL or others - I suspect it's b/c they pocket more of the spread for themselves in vig.

Good Luck!

Both performing as stated in information.

I really like PeerStreets ability to auto invest based on your set criteria. I just made my second investment there of $1k with a 10% return!

Update - PS still performing and paying as stated. Great communication.

Realty Shares- terrible communication. Initial investment is now in default. They said they were going to sue the developer but that has still not happened and it has been over a month.

I am extremely disappointed in how Realty Shares has communicated all this with me also. Very spotty and delayed communications. Will probably stop investing with RS and stick with PS and my own investments.

Thanks everyone!

I have had pretty good luck with Peer Street.

Here is my current analysis of the first four loans with peer street, one is in default out of four.  Current average return 7.27% percent, these are all 12 month loans with stated above 8% returns.

This post has been removed.

RS has been very disappointing. Bad communication and now loan is in default. Won’t be investing with them any more than is for sure. PS has been great. Love the automated investing feature. Have made at least six investments with them now. Will continue investIng with them.

@Todd Schmitz

Anything further to report? I have just started with Peer Street this month with 3ea $1k investments. Want to see how things work before I decide to put any real money with them. Getting updates from others like you are helpful to crowdfunding newcomers like me.

Also starting to look into Harvest Returns as another alternative investment but while I grew up around cornfields and farmers, I know little about that business so how far I go with it is TBD...

Regards,
Dave

Originally posted by @Todd Schmitz :

@Dave G. 5 paid off total. 8 active investments now. They did change their auto investing some and now you can’t select the rate of return you want. I am happy with the variety of properties posted.

 You can still choose your minimum rate of return.  Click on the "More Customizations" link and you'll see it listed with the additional options.

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