How do I add funds to PS Pocket?
Any available cash in your PeerStreet account can be invested in any Pocket offering. If all your cash is tied up in fractional investments, you can 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 1-month can be redeemed once a month whereas funds invested in Pocket 3-month can be redeemed 3 months after the original date of deposit. Upon redemption, available cash can be invested in new loan opportunities.
In the future, PeerStreet may develop functionality allowing investors to invest directly from a Pocket offering 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?
There is currently a $1,000 minimum initial investment. There is no minimum for subsequent investments.
Will I be charged any fees to invest in Pocket?
There are no fees to use Pocket.
Is there a minimum amount of time my money must remain invested in Pocket?
For Pocket 1-month, 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.
For Pocket 3-month, each investment can be redeemed on the Investment Period End Date noted on the Redeemable Warehouse Note Schedule (RWN Schedule). A 30-day notice to PeerStreet is required to process the redemption.
Where can I request a withdrawal from Pocket?
Investors can request withdrawals directly from their PeerStreet account under the Pocket tab. If you are having any issues, please contact PeerStreet directly.
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 Pocket?
As of the date of publishing this FAQ, Pocket 1-month pays 4.00% annual interest and Pocket 3-month pays 4.50% annual interest. These rates are subject to change and the latest rate(s) 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 with better liquidity. 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 in loans can do so 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, in addition to the interest earned from Pocket, gets automatically reinvested. At the end of the term (i.e. 1 month or 3 months), if no redemption was requested the investment rolls into another term.
I’m currently invested in Pocket 1-month. Can I invest in both Pocket 1-month and Pocket 3-month?
Yes. You can now also invest new funds into Pocket 3-month where your funds are invested or vested for 3 months at a higher rate.
Can I transfer funds from Pocket 1-month to Pocket 3-month?
No. You can withdraw funds from one Pocket investment and then invest in another once your funds are in cash.