has announced the launch of a new loan product for private lenders: Residential for Rent loans. Residential for Rent loans have a 30-year term, so borrowers can secure long-term financing for residential rental properties. This launch is in response to key market conditions: as more people struggle to finance buying a home, the rental market has continued to grow.
Because of the longer-term nature of Residential for Rent loans, PeerStreet is currently offering investment in this product to its pool of institutional investors—a group with a proven appetite for this asset class. For PeerStreet’s network of private lenders, this presents an opportunity to do more business with their borrowers, in addition to attracting new customers who need long term financing rather than short term bridge loans.
“We’re very excited to be expanding our marketplace by offering Residential for Rent loans. This is a natural progression for us as a company as we increase our volume of transactions with institutional investors,” said Brew Johnson, Co-Founder and Chief Executive Officer of PeerStreet. “Our move into this asset class is important to continue to support the growth of our private lending partners and help them better serve their borrowers.”
Brett Crosby, Co-Founder and Chief Operating Officer of PeerStreet, said, “Supporting this new product is incredibly valuable for the PeerStreet marketplace as a whole. More lenders means more loans, which makes it easier for investors to diversify their portfolios. That benefit brings more investor demand, and in turn, enables lenders to attract more quality borrowers. It is a virtuous cycle that builds upon the platform and enriches the marketplace.”