The LA Times wrote a great feature piece about house flippers turning to crowdfunding and marketplace lending platforms for financing. Keep an eye out for the paper edition on Sunday. The article outlines how online lending platforms improve the ecosystem for borrowers, lenders and investors. PeerStreet is mentioned throughout the story and there is a good example, involving one of our lender partners, Golden Capital, that runs through how the process works and each stakeholder’s involvement.
Wider Range of Investors
Prior to offering loans on PeerStreet, Golden Capital primarily sold its loans to a small group of high net worth individuals. Now, those loans can be offered on the PeerStreet platform and a wide range of investors can take part in the deals. The Golden Capital borrower mentioned in the piece took out a loan on a Pomona, CA property last summer, completed renovations and then was able to sell the home at a profit. There were 25 PeerStreet investors who participated in the offering and who benefitted from a high-interest bearing, short-term investment that paid off in full. Not only that but providing an avenue for this financing also indirectly benefits the surrounding neighborhood. An improved house on any block can help beautify an area and could also boost home values over time. Again, there’s a significant value add offered to the entire ecosystem.
Get started today with PeerStreet