PeerStreet Review (2023): Best For Real Estate Investing?

Updated On: November 23, 2023

Welcome to my PeerStreet review. My goal is to answer common questions like: how much it costs, if it's a scam, and if you can actually make money with it. The end goal is to help you understand if it's a good fit for you personally, and if there are any better alternatives out there.
PeerStreet Review

This PeerStreet review has been throughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn by myself are opinions.

Table of Contents

Program At A Glance

What I liked
A steady influx of available investments
The automatic investment option enables simple diversification among a large number of loans
The minimum investment is low ($1,000 per investment, with the option to auto-reinvest in $100 increments)
What I Didn’t Like
Only accredited investors are eligible
Because loans are not pre-funded, there may be a time lag between when you invest and when you begin earning interest.
Due to the high volume of loans, there may be delays in updating specific loans.

As a digital business, PeerStreet, which includes an ex-Google co-founder and is backed by Andreesen-Horowitz, is approaching real estate loans the way you’d expect: with technology and Big Data.

When Urchin Software, which Brett Crosby founded, was bought by Google in 2005, he joined the team that built Google Analytics. So it’s reasonable to assume they have credibility with this strategy.

PeerStreet, unlike some other sites, is not a direct lender. Instead, they resale loans to crowdfunding investors through the existing infrastructure of private money lenders.

Arguably, this allows those with skill in loan underwriting (private lenders) to continue doing what they do best (after selling the loan via PeerStreet, they may then “recycle” their capital into the next loan). While lenders are encouraged to have some “skin in the game” and keep a portion of the loan to align interests better, this is not always the case.

But more on that later…

This review will go over PeerStreet to see if it really is the best real estate platform out there.

You’ll learn whether real estate investing is the right online business for you.

PeerStreet is a course that teaches you about real estate investing.

If you’ve read my other articles on real estate investing, you’ll know there are 3 primary ways to invest:

Wholesaling, buy-and-hold, and flipping.

While they each have their pros and cons, there is a ton of potential for success in investing in real estate.

Real estate has created some of the largest fortunes in world history.

That being said, you should take some time to seriously think about something:

Is now the best time for YOU to get into real estate investing?

Because despite the potential upside, investing in properties or land takes a lot of capital, and is very labor intensive.

That means if you:

  1. Have less than 3 hours per day, OR
  2. Aren’t sitting on $20K+ in disposable income

This may not be the best time for you to start investing in physical real estate.

Don’t get me wrong, real estate investing can be an amazing way to protect your assets while generating cash – but there’s a time and a place for it.

But there’s good news!

All you need is a system to generate the cash (& free time) you need to be ready for real estate investing.

My preferred method of getting there is by becoming a Digital Landlord

It takes the benefits of real estate investing, but removes many of the barriers (& annoyances), like::

  • Small cash flow on properties
  • Having to take out debt
  • Dealing with repairs and upkeep
  • Dealing with tenants

The cool part is that the income is mostly recurring (AKA semi-passive).

You could make anywhere from $2,000-$10,000+ per month doing it.

You can build it as big (or small) as you feel like, without the annoyances I listed above.

If that sounds interesting, you might want to think about using the Digital Rental Method.

Then, you can take the profits and start investing in physical real estate a year or two from now.

If you wanna see what PeerStreet looks like on the inside, keep reading.

What Is PeerStreet?

What Is PeerStreet

One may use PeerStreet as a platform for crowdfunding or peer-to-peer lending. Borrowers looking for short-term real estate loans may use it to connect with lenders like you. Using its platform, it can handle loan investments successfully.

The borrowers are “real estate equity investors,” which means they are professional investors who buy a home or property, fix it up rapidly, and resell it at a greater price.

Lenders that invest in PeerStreet place their money into real-estate-backed loans and are given first-lien status. The first lienholder is actually the first person to be paid back if a contract falls through, so your money is better secured in the event of a default or other severe catastrophe.

This investment is distinct from a traditional REIT in that it offers the investor greater transparency and flexibility. With PeerStreet, you may choose from various real estate loan portfolios. These hard money loans comprise various property types, geographic areas, loan maturity dates, and other factors.

PeerStreet also claims to have a cheaper fee structure than a traditional REIT, allowing investors to profit on PeerStreet’s superior returns. With PeerStreet, you may anticipate paying a servicing charge of 0.25% to 1% for each loan you invest in.

All PeerStreet real estate loans are sourced from vetted private financial institutions in the United States. The borrowers to whom you will lend are well-known real estate professionals.

PeerStreet is not suitable for all investors. There are numerous requirements for the investors with whom they engage. These are referred to as accredited investors.

How Safe Is PeerStreet?

Is Peer Street Safe

Any peer-to-peer lending network has the potential for nonpayment. Investors’ interest payments may be halted when borrowers cannot repay their debts. If this happens, at least each loan’s underlying real estate assets on PeerStreet provide some protection.

PeerStreet manages the loan recovery procedure if a borrower fails on a loan. In addition to its real estate staff, the company employs a team of legal and regulatory specialists that act on behalf of investors to make PeerStreet investors whole.

Overall, PeerStreet’s platform has shown to be pretty safe. As previously stated, more than 95 percent of loans sold to investors on its platform have been paid off without needing a foreclosure process. As a result, most investors have obtained returns that are pretty close to expectations. Because of its outstanding track record, PeerStreet is an appealing option for accredited investors seeking to produce passive income through real estate loans.

What Does Peer Street Do?

What Does Peer Street Do

In many cases, loans made via PeerStreet are first liens secured by real estate. The ” originators ” put together the deals, representing the principal parties. Investors on the site lend money to the loans. Accredited investors must attend.

PeerStreet investments are in real estate loans, not in real estate itself. It’s also vital to understand that, while the loans issued through PeerStreet are secured by real estate, the notes in which you invest are not. This is because the note reflects a portion of the loan rather than the entire amount. You do, however, have the option of investing in a whole loan.

PeerStreet loans can include loans placed on single-family homes, either to rent the property or to remodel it to boost its value.

The loans are typically short, ranging from six months to 24 months, with a loan to value ratio of less than 75 percent. Loans are made around the country on various sorts of real estate projects with various originators and property types to establish a diverse pool of possible investments.

PeerStreet’s team of finance and real estate experts underwrites real estate loans. To ensure that loans are high-quality investments, they use modern algorithms, big data analytics, and manual methods to underwrite each loan.

They also rigorously screen originators, allowing only highly experienced private lenders with a proven track record to join the platform. Investors and originators must conduct their own due diligence in order to choose which borrowers and loans to invest in.

PeerStreet examines track records, financial accounts, licensing and compliance with state usury laws, background checks, and legal and underwriting processes for originators.

For loans, they conduct independent underwriting using a combination of manual and large data analytics, order-independent valuation (BPO/Appraisal), guarantee that each loan complies with PeerStreet underwriting requirements, and examine legal documentation.

PeerStreet will give IRS Form 1099 for income tax reasons, which could be provided for interest revenue, original issue discount (for notes with periods greater than one year at the time of issue), debt cancellation, or other income, such as incentives and late fees, if they reach $600.

Features Of PeerStreet

Features Of PeerStreet

You may construct a portfolio on the site by selecting specific loans and customizing them according to your tastes and characteristics.

As with other P2P lending platforms, you may utilize PeerStreet’s Automated Investing feature. With the automated option, you may have loans added to your portfolio without having to do anything at all.

Expected Annual Returns: According to PeerStreet, typical loan investments will generate an APR from 6% to 12%. This is significantly higher than the mortgage rates generally charged by banks and mortgage companies. However, this is because these loans are for unique conditions, such as property restoration. These are the kinds of loans that aren’t usually offered to banks and real estate investors.

List of Originators: PeerStreet offers a list of originators. This will assist you as an investor in researching the people and businesses you will provide investment funds too.

Account Types: PeerStreet allows you to construct a traditional or Roth IRA in addition to standard taxable investment accounts. IRAs are self-directed accounts.

Account Security: Investor monies are stored in an Investor’s Trust Account at City National Bank and are FDIC insured for up to $250,000/investor.

Site Security: All activities on the platform occur through a secure and encrypted connection that employs SSL/TLS, a security technique utilized by all banks and other financial institutions. Personal information is encrypted using public key encryption technology. PeerStreet’s hosting provider is subjected to frequent penetration testing and vulnerability assessments.

Defaulted Loans: PeerStreet keeps the loan defaulted in a distinct bankruptcy-remote entity from the main firm. They will take over the workout process, act on behalf of clients to protect their investment, and maximize liquidation proceeds.

Their team also includes individuals with extensive knowledge in real estate lending, including commercial loan experience and legal and regulatory compliance.

PeerStreet’s Investing Options

PeerStreet Investing Options

This terrible investment platform focuses only on real estate debt. Individual investors may now easily access a previously out-of-reach asset class thanks to the platform’s two-sided marketplace. It also links a verified network of private lenders with various finance sources to help them develop and provide lending back to their local communities.

There are a few exceptions, but most of their loans are for home purchases, refinancing, and rental investments. PeerStreet’s automated investing option allows investors to invest automatically (and reinvest) in loans that meet particular criteria (e.g., interest rate, LTV, term, and investment type). As of this writing, the longest loan term available is 36 months, with most loans lasting between six and 24 months. LTV ratios of less than 75% are typical.

While the minimum investment in a new loan is $1,000, as of April 2019, automatic balance reinvestments of at least $100 are an option, allowing investors to reinvest interest payments effortlessly and compound their gains.

What Do You Get When You Invest With PeerStreet?

One of the appealing aspects of real estate investing (particularly debt) is that what you invest is backed by a tangible asset you can sell to recoup investor funds if something goes wrong. However, as with many other crowdfunded real estate investing sites, your investment is not technically protected by the underlying property. Instead, you are given a “Mortgage-Dependent Promissory Note,” which rights you to a portion of the principal & interest payments paid by the borrower on the mortgage.

How Does PeerStreet Make Money?

How Does PeerStreet Make Money

PeerStreet, like many other crowdfunded real estate sites, levies fees as a “spread” between what the borrower pays and what the investor receives. PeerStreet is paid only when its investors are paid. PeerStreet’s fees are on the lower end of the spectrum compared to similar platforms, often ranging between 0.25% and 1%. (For instance, if the borrower is paying 9% interest on a loan you’ve invested and the charge is 1%, you will receive 8% interest.) The charge is always mentioned in conjunction with the investment information.

Cashflow And Potential Returns

Cashflow And Potential Returns

PeerStreet loans have interest rates ranging from 6 to 9 percent, with terms ranging from 6 to 36 months. Investors get monthly interest payments (the exact date varies depending on the investment), with principle and any other distributions paid to investors as received by PeerStreet. Funds remain in your PeerStreet account until you withdraw them (or choose to have them reinvested if you exceed the $100 reinvestment minimum).

PeerStreet has improved its investor updates procedure, but due to its enormous volume of loans, thorough proactive updates are rare. If you invest in properties on PeerStreet, expect to check back frequently to track their performance.

PeerStreet’s Breadth Of Offerings

PeerStreet understands that volume is important when competing on technology, Big Data, and efficiency. Hence, a relatively high number of loans are moving through PeerStreet regularly. Investors considering using the automated investing function should consider whether they are comfortable with PeerStreet’s procedure and approach to screening lenders and loans (largely reliant on a network of third-party origination partners).

Expectations For Regulatory Framework And Due Diligence

Under SEC Regulation D, PeerStreet only accepts investments from accredited investors. They are not licensed broker-dealers or financial advisors, but they (or one of their affiliates) are California Lenders and Real Estate Brokers (headquartered in Manhattan Beach, CA). Its marketed due diligence method for their loans includes assessing an independent appraisal and related legal documents, confirming that the loan fulfills PeerStreet’s underwriting guidelines, and doing independent underwriting using both manual and “big data analytics.”

Before accepting a third-party lending partner, they investigate the prospective partner’s track record, state licensure, compliance with lending laws, and background checks. In theory, their high loan volume provides them with a wealth of data to work with to improve the system. Still, in practice, none of these crowdfunded investment platforms have yet experienced a major downturn, so the underlying algorithms may not yet have an expected loan performance. 

Can You Make Money With PeerStreet?

Digital Landlord Better Than PeerStreet

As an accredited investor, yes you can!


There’s a lot that comes along with real estate investing that many people struggle with.

Now, don’t get the wrong idea…

It’s not impossible to make money with real estate investing, but if you’re gonna put in the amount of grueling work to do this business (which, trust me, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.

The program that helped skyrocket many online businesses to over $40,000+ per month is so simple that making money really does become second nature.

Is PeerStreet Legit?

Is It Legit

Yes, PeerStreet is legit. Thousands of people have used this reputable real estate funding platform to scale their real estate investments.

Are There Alternatives To PeerStreet?

Other Business Models To Choose From

Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:

Is PeerStreet A Scam?

Is It A Scam

So, time for the $1,000,000 question – is PeerStreet a scam?

No, not technically. You can 100% make money with this program, though it’s not nearly as simple as they make it seem.

As with most businesses, there is A LOT of work to be done upfront & no guarantee of you being successful.

Not to mention the profit margins are typically pretty small.

Don’t get me wrong, I’m a big proponent of front-loading work now, so that you can reap the rewards later.

But if I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.

I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each produce $500-$2,000 checks every single month afterward (AKA recurring income).

And the cool part is that you can do it in a lot less time than 3-months (I personally did it in my first 2 weeks of using the Digital Rental Method).

Unlike physical real estate, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.

All you need is an internet connection.

Some of my friends are Digital Rental Method that run their 6-figure businesses from:

  • Camping trips at national parks
  • Beachfront in Hawaii
  • On the road in a camper van (with a pet pig!)

They focus on living an enjoyable life first, and focus on income second. All thanks to this program

They can take weeks or months off, and money keeps rolling in.

Living happily is the top priority.

If the thought of living perpetually at your dream vacation spot interests you, using the Digital Rental Method might be for you!

Read Our In Depth Breakdown Of The Top 5 Real EstateOpp Courses For 2024

Did PeerStreet Make The List?

What Is My Top Recommendation For Making Money Online In 2022?

Make Money Online Thru Digital Landlord

I’ve personally tried all of the major online business models:

  • I’ve sold fidget spinners through Amazon FBA
  • I’ve dropshipped a toilet bowl putting green on Shopify
  • I’ve sold women’s health supplements via Clickbank affiliate marketing

And I made money with all of them, so trust me when I say: there is no “perfect” business model.

It’s worth noting that I FULLY endorse real estate investing as a way to grow wealth, and that’s why I invest my own money in commercial and residential real estate.

That being said, my #1 recommendation for making real money online as a beginner is, hands-down: being a Digital Landlord.

Whether you’re a complete newbie or you’ve been around the block before but have never had that “big win” to propel you forward, using the Digital Rental Method is for you.


Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all-in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.

And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.

That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.

But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.

Real estate investing is a FULL-TIME JOB. If you stop finding deals, your money dries up.

Ownership & Control: Unless you’re buying your properties in cash, you don’t technically own the properties – the lender does.

If you miss a single payment, the property can be taken from you.

Why pour your soul into a business that could be taken away from you at the drop of a dime?

With the Digital Rental Method, you literally own all of the assets, which means you have ultimate control.

Ongoing costs: With real estate, profit margins are actually pretty slim. Real wealth is made in owning the assets, and owning A LOT of them.

using the Digital Rental Method, your profit margin is nearly 100%. Watch here to learn how.

Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort to create the next property decreases.

Best-case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.

It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…

If you wanted to double your income with real estate investing, you would need twice as many properties, or double your profit margins on each property. And I can guarantee you that’s a lot harder than a few clicks & a phone call.

Make Money Helping Real People: With the Digital Rental Method, you’re helping solve REAL problems that people are ASKING for help with:

Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.

You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.

Having this type of impact on the world is what will help you sleep soundly at night.

So, the rest is up to you. You could keep looking at other opportunities PeerStreet, which might make you money.

You could keep researching and researching for the next few months (or few years), never making a concrete decision.

OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.

Making a fortune while actually helping real people that need it.

If this sounds like you, click here to see how it all works.



I make over $20,000/MO thanks to this platform... check it out below!