Just made my first investments in Peerstreet and Realtyshares

38 Replies

I have been with peerstreet for 1 year. 6 loans have been paid off. At present I have 7 loans outstanding - 2 are in default, 2 are late 60 days, and 3 are current. I am extremely disappointed that more than half of my loans are non-performing and will not be putting any new money into peerstreet. Interest rates range from 8-9% and I selected them utilizing criteria of loan to value, credit rating, and the lender with no history of defaulted loans.

Update on my experience although I only started ~5 months ago with PS. 

I agree with @Charles Gilman I have not found them to be that great. I increasingly question why I am taking on the risk for only a few more percent than the increasing MM rates. I have multiple positions that PS has statused as Current for months, yet they're clearly delinquent as they've only paid a fraction of the interest that would have been paid if current. In terms of investment offerings, property locations are weighted heavily toward Judicial foreclosure states (CA, NJ, NY, etc) which I refuse to invest in due to the associated risks. I also question the credibility of their comps offered (comps from 2016 & 2017, really?) and the quality of the borrowers (LLCs with no credit rating?). Based on how fast all the loans are getting funded, my opinion is there are a lot of people investing blindly on the automatic investing function.

@Todd Schmitz How you are achieving a ~9%? Offerings of 9% are not common on PS and that's your average return? And no problems? I'm not buying it.

in response to Phil and Dave above... I have tried a few loan with PS but probably will not do any more. There are better options out there. I agree with Dave’s points above. Low quality in some cases and high risk. Not enough transparency from PS.  And some of the comps look really questionable to me. 

Update for anyone who cares.

I decided in August to begin to pull out of PS for the reasons I mentioned in my previous post above ~5 months ago. I had as much as $10k deployed and now I'm down to $7k (7 positions). 5 of the 7 positions are delinquent, 2 of them 60 day, one entering foreclosure as it's more than 90 days. 

Over the course of ~11 months experimenting with PS, I've had a lot of short term loans comply with terms and pay off. But a lot of them had been delinquent for part of their duration. And I still feel that the return is not worth the risk, and given the continued deteriorating status of my current positions, I intend to keep pulling out (if I get my $$ back!). 

If there were significant changes made by PS such as better yields, better property locations, better loan-to-value ratios, better transparency, or better borrower screening, I may be inclined to continue this experiment. Otherwise, I'm done.