Typically lenders put up their own capital to originate loans. PeerStreet has the right, but not the obligation to acquire the loans. We hand select loans that fit our model based on underwriting guidelines and estimated investor demand. So lenders must be comfortable holding their loans on their balance sheets in the event that we do not purchase them. There are a variety of reasons lenders keep “skin in the game” in loans, meaning they keep a financial stake in the deal alongside PeerStreet investors. And there are several reasons they don’t keep a financial interest on other loans.

A couple reasons a lender may not keep “skin in the game” include:

  1. Demand for loans: Loans with specific characteristics receive a lot of demand from PeerStreet investors. We want to make as much of the loan available as possible so, in those instances, we may ask the lenders not to retain a portion of the loan.
  2. Lender capital constraints: Lenders occasionally need to free up more capital so they can make more loans, and therefore they cannot retain a portion of the investments offered on PeerStreet.
  3. The lender has an established relationship with PeerStreet: When we first onboard lenders, we very often require the lender to retain an ongoing interest in loans until a track record is established with us.

If you have additional questions about a specific PeerStreet offering, please contact us at