How do I add funds to PS Pocket?
Any available cash in your PeerStreet account can be invested in Pocket. If all your cash is tied up in fractional investments, you must add more funds to your PeerStreet account or wait for a payout before investing in Pocket.
Can you invest from Pocket directly into loans on the platform?
Not exactly. Before funds in Pocket can be invested in loans, they must first be redeemed from Pocket. Funds invested in Pocket can be redeemed once a month and, upon redemption, can be invested in new loan opportunities.
In the future, PeerStreet may develop functionality allowing investors to invest directly from Pocket into loans (without having to go through the redemption process), but this functionality does not currently exist.
Where can I find information about my account?
Information regarding your investments in Pocket can be found on the Pocket dashboard. More in-depth information about Pocket generally, its structure, rules, and risks can be found here.
What is the minimum investment? Is there a maximum amount I can invest?
There is currently a $1,000 minimum initial investment. There is no minimum for subsequent investments. There is no stated maximum, although PeerStreet may stop accepting new deposits at any time.
Are there any fees associated with PS Pocket?
There are no fees to use Pocket.
Is there a minimum amount of time my money must remain invested in Pocket?
Funds invested in Pocket can be redeemed on the first of each month, by giving notice to PeerStreet by the 15th day of the preceding month. If the 15th day is a weekend or bank holiday, notice must be given on the previous business day.
How is this different from investing in loans on PeerStreet?
Unlike the loan investments, investors in Pocket have the ability to withdraw funds once a month. Investments in Pocket are also guaranteed by PS Funding, Inc., in addition to being secured by cash and interests in the loans financed by Pocket funds at any moment in time.
Funds invested in Pocket may be used to finance loans from the day PS Funding, Inc. (PeerStreet’s lending arm) acquires them through the day they are resold on PeerStreet’s marketplace, and are otherwise held in cash.
For a more detailed and thorough description of Pocket, please consult the PPM dated December 2, 2019, as well as the RWN Supplement. For more information on the loan investments, please consult the PPM and the MPDN Supplement.
How is this different from 30 day notes?
Payment of Pocket interest is not dependent on the performance of the loans held as collateral, or payment on any specific loan or loans. Interest and principal payments are guaranteed by PS Funding, Inc. Also, monthly interest is automatically reinvested in Pocket until redeemed, unlike interest and principal on 30 day notes which are distributed directly to available cash.
Is this a savings account and is it FDIC insured?
No. PeerStreet is not a bank and Pocket is not a checking, savings, or other type of bank account or banking product. Pocket is neither FDIC nor SIPC insured.
What is the interest rate I’ll earn in PS Pocket?
Pocket pays 2.50% annual interest. The rate is subject to change and the latest rate can be found on the Pocket dashboard.
Why is PeerStreet offering this now?
PeerStreet received many investor requests for more liquid, shorter term products. Additionally, while major financial institutions have long offered PeerStreet and other mortgage market participants with access to warehouse financing, retail investors have not been able to invest in warehouse facilities. By launching Pocket, PeerStreet aims to give investors a shorter-term product and to give them an opportunity to “be the bank”. That’s what we like to call Leveling the Playing Field between Wall Street and Main Street.
When and how is interest paid?
Interest is paid monthly, but gets automatically reinvested in Pocket, which means that Pocket investors can earn interest on their interest. Investors wanting to withdraw Pocket funds to their bank account or to invest them in loans can do so on a monthly basis, by placing a redemption request.
Do I have to do anything to keep my money invested from month to month?
No. Money invested in Pocket month to month and interest from Pocket also gets automatically reinvested.
What is backing my money in PS Pocket?
Funds invested in Pocket can only be used to finance the acquisition of loans for limited periods of time. When not used to finance loans, funds in Pocket must be held in cash by PS Warehouse, LLC and may not be used for other purposes. PS Funding, Inc. also guarantees repayment.