What is the PeerStreet Portfolio and why is PeerStreet offering this now?
By launching the PeerStreet Portfolio, PeerStreet aims to give investors instant diversification and greater liquidity through a single investment in a portfolio of loans secured by real estate.
The PeerStreet Portfolio gives access to a diversified pool of short-term fixed-rate loans coming through the PeerStreet platform. It also provides greater access to periodic liquidity. These benefits are achieved by investing in loans (whole or fractional) with terms of 24 months or less, secured by the underlying single-family or multi-family properties.
How do I add funds to PeerStreet Portfolio?
Any Investable Cash in your PeerStreet account can be invested in the PeerStreet Portfolio. If all your cash is tied up in fractional investments, you must deposit more funds to your PeerStreet account or wait for a distribution payout from the fractional loan(s) investments before investing in PeerStreet Portfolio. If your cash is invested in Pocket, you can withdraw funds to your PeerStreet Investable Cash account and then invest in the PeerStreet Portfolio.
Where can I find information about my investment in PeerStreet Portfolio?
Information regarding your investments in the PeerStreet Portfolio can be found on the Portfolio tab of the dashboard. In addition to the information on the dashboard, more in depth information about the PeerStreet Portfolio, its structure, rules and risks are located in the Offering Materials for PeerStreet Portfolio. This includes the PeerStreet Platform’s Portfolio Product PDN Supplement (“Portfolio PPM”), payment-dependant note, and Investor Agreement, which govern your investment in PeerStreet Portfolio. All documents can be reviewed prior to or at the time of your investment in PeerStreet Portfolio.
What is the minimum investment? Is there a maximum investment?
There is currently a $1,000 minimum initial investment. Subsequent investments also have a $1,000 minimum. There is no cap on investment amount at this time.
Are there any maintenance fees associated with PeerStreet Portfolio?
There are no maintenance fees associated with the PeerStreet Portfolio, but certain servicing fees may be charged pursuant to the terms of the Portfolio PPM (as further discussed below).
How often can I withdraw money from PeerStreet Portfolio?
Investors who wish to withdraw funds to their bank account or to their PeerStreet account where the funds can be re-invested in loans can do so on a quarterly basis. Simply place a redemption request with 60 days’ notice by emailing support@peerstreet.com.
What interest rate will I earn in PeerStreet Portfolio?
Amounts earned by investors through PeerStreet Portfolio are based on the interest payments received by PeerStreet on the loans in the portfolio and the Net Asset Value (NAV) of those loans in the Portfolio. The PeerStreet Portfolio creates passive income from monthly interest distributions with targeted returns of 5-10%*. Past performance is no guarantee of future results, and any historical returns, expected returns, or probability projections may not reflect actual future performance.
When and how is interest paid?
Interest on your investment is payable monthly in arrears, on the 5th business day of each month. Additionally, the interest from the underlying loans is typically received a month in arrears, so there will be a lag of one month from your initial investment before you start receiving interest. Monthly interest payments to investors from PeerStreet Portfolio are deposited as Investable Cash in your PeerStreet account.
How can I monitor the performance of PeerStreet Portfolio?
Investors will receive monthly statements on the portfolio composition characteristics as well as portfolio performance and Net Asset Value (NAV), via the dashboard.
How is the PeerStreet Portfolio Net Asset Value (NAV) calculated?
The Net Asset Value (NAV) of the PeerStreet Portfolio is equal to any Investable Cash invested, plus the fair market value of the loans and fractional loans held by the PeerStreet Portfolio. The fair market value is a weighted average of a valuation range provided by a nationally recognized third-party valuation firm. Their valuation range will vary based on the performance of the underlying loans and changes in market interest rates. The NAV and the PeerStreet Portfolio Value (NAV expressed as a percentage of par) is not reflective of interest received by the Portfolio (to be distributed to investors) nor accrued interest between the scheduled payment dates from the borrowers.
In order to facilitate the liquidity benefit of the Portfolio, the Portfolio’s investments are marked to fair market value, meaning an estimated current price at which the investments can be bought or sold in a transaction between two independent parties.
How is the PeerStreet Spread calculated?
The “Standard Fee,” as defined in the Portfolio PPM, includes the PeerStreet Spread and liquidity charge, together capped at 2.5%. The investor rate is net of the PeerStreet Spread. The aggregate spread for the Portfolio is disclosed on the monthly statement. The PeerStreet Spread is the difference between the PeerStreet Note Purchase Rate and the Investor Rate.
