Today we’re excited to announce the launch of a new loan product for our network of lenders, Residential for Rent loans. These loans are for borrowers who are renting out a single-family residence to tenants. Because of the 30-year term nature of these loans, they are currently being offered to institutional investors who have been requesting access to this asset class.
This begs the question: Why are we telling you about it? The answer highlights the power of the two-sided marketplace we’ve built.
This launch comes at an important time in the real estate market cycle. As more people are finding themselves priced out of purchasing a home, the rental market continues to grow. People now have an opportunity to benefit by renting their properties for competitive rates and terms.
That opens up a great opportunity for our network of lenders, empowering them to do more business with their current borrowers, while also attracting new borrowers who focus on buying and renting properties. Simultaneously, we’re providing financial institutions more access to this type of loan product, and yet another opportunity to diversify their portfolios (a common strategy for mitigating investment risks).
The support of institutional investors is incredibly valuable for the PeerStreet marketplace. These institutions bring in large sums of capital, which in turn attracts more lenders to the platform. More lenders on the platform generate more loans for investors like you to choose from, making it easier to diversify your portfolio while increasing investor demand. That demand enables lenders to attract more quality borrowers and originate more loans, which helps to bolster the local economy and improve communities—one property at a time.
The result? A virtuous cycle that benefits all participants on the platform, and the ecosystem at large.
Get started today with PeerStreet