SPONSOR PROFILE: PEERSTREET
The Loan Arrangers Innovative Online Lending Marketplace PeerStreet is Moving Forward by Returning to Community Values. by Susan Thomas Springer
F
ounded in 2013 by CEO Brew Johnson and COO Brett Crosby,
In this articled, the founders share their insight on the industry along
What trends do you see in private lending?
PeerStreet is an online marketplace
with what they’ve accomplished, for
that has funded more than $75
all participants in their platform, in
million in loan volume. PeerStreet
only a few short years. As told to
If you look historically how the
selects originators from across the
contributing writer Susan Thomas
industry has evolved, the first thing
country and then vets their real
Springer, edited for brevity.
is that banks have increasingly
estate loans before making them
BRETT CROSBY
focused on qualifying mortgages
available to investors. The private
What factors are most important
at a place that they want to lend in
lender partners can make loans more
when you select private lenders to
real estate, and they like to focus
efficiently thanks to PeerStreet’s
join PeerStreet?
there because they have a secondary
technology platform, including data analytics, a robust underwriting engine and other tools.
BREW JOHNSON When lenders apply to join our
market in Fannie Mae, where they can originate and then sell. Private lenders have stepped in
PeerStreet, a member of the
platform, we run them through
to fill the voids, and on one side
American Association of Private
a long due diligence checklist.
of that marketplace you have the
Lenders, is based in Manhattan
The high-level important thing is
private lenders that we focus on
Beach, California. Earlier this year,
the quality of their track record.
who do bridge loans. The whole
the company was named Think
We go through their culture of
private lending industry generally
Realty Magazine’s “Innovator of
underwriting, get an understanding
doesn’t have a secondary market. If
the Year/Lending” for 2016 in
of how they look at deals and how
you think about it from the private
recognition of the unique approach
they deal with borrowers. It’s a huge
lender perspective, that’s basically
that Johnson, Crosby and their
process to vet the lenders with whom
what we’ve created.
multidisciplinary team have taken to
we operate and who basically provide
build the innovative company.
us with deal flow.
64 PRIVATE LENDER
When secondary markets are created, it can actually unlock a lot