Best PeerStreet Competitors

Jeremy Biberdorf Image
Updated
Feb 24, 2024
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In the evolving landscape of real estate investment, platforms like PeerStreet have carved out a niche, offering investors unique opportunities to diversify their portfolios through peer-to-peer lending. This article delves into the world of PeerStreet, exploring its offerings, advantages, and limitations, and contrasting it with other leading platforms in the realm of real estate investment.

What is PeerStreet?

PeerStreet stands out as a pioneering platform in the peer-to-peer lending space, focusing on real estate debt. It operates by bridging the gap between borrowers seeking real estate loans and investors aiming to fund these loans, thereby earning interest.

What sets PeerStreet apart is its meticulous selection of loans, emphasizing lower-risk opportunities and allowing investors to handpick the loans they wish to invest in, unlike the pooled investment approach of a Real Estate Investment Trust (REIT).

The platform's allure lies in its transparent approach, granting investors access to the performance history of every investment made through PeerStreet. With an entry point as low as $1,000 and a minimum commitment period of just six months, it opens up real estate investment to a broader audience, albeit exclusively to accredited investors.

Read my full PeerStreet review to learn more.

PeerStreet Pros & Cons

Pros

● Detailed performance history for informed decision-making.

● Low minimum investment threshold, making real estate investment more accessible.

● Option for self-directed IRA investments.

Cons

● Restricted to accredited investors, limiting access for the general public.

● Investments are relatively illiquid, potentially tying up funds for extended periods.

● The platform's offerings are exclusively in debt, lacking the equity component found in traditional real estate investments.

Why Seek Other Options?

Despite PeerStreet's innovative approach, investors might look for alternatives for various reasons. Some may prefer platforms that offer equity investments in real estate, providing potential for both income and capital appreciation.

Others might seek platforms with lower entry barriers, catering to non-accredited investors. Additionally, the desire for more liquid real estate investments, such as those offered by REITs, might drive investors towards different platforms.

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Quick Breakdown

Best PeerStreet Competition


  • Best for beginners and non-accredited investors seeking diversified real estate investments.

  • Ideal for accredited investors looking for direct equity investments in commercial real estate.

  • Suitable for accredited investors desiring a mix of debt, preferred equity, and direct equity investment options.

Top 3 PeerStreet Competitors

Fundrise

4.6 stars
Account Minimum $10
Best For REIT Investments
Benefits
Overview
Company
  • Low minimum investment, making it accessible to a wide range of investors.
  • Offers a mix of debt and equity investments for diversified exposure.
  • Non-accredited investors can participate, broadening its appeal.
  • Automated investment plans tailored to individual financial goals.
  • Regular dividend payments provide a steady income stream.
  • Transparent fee structure with no hidden costs.
  • Offers a 90-day satisfaction guarantee, providing peace of mind to new investors.
  • User-friendly platform with extensive educational resources.
Fundrise democratizes real estate investment, allowing individuals to invest in a portfolio of properties across the U.S. with as little as $10. The platform is known for its eREITs and eFunds, which encompass a mix of commercial, residential, and mixed-use properties.

Fundrise's approach is to make real estate investing as accessible as investing in stocks or bonds, with the added benefit of providing tangible assets and the potential for stable returns.

Founded by brothers Ben and Dan Miller in 2012, Fundrise is headquartered in Washington, D.C. The company was among the first to leverage new regulations to enable crowd-funded real estate investments.

Since its inception, Fundrise has grown significantly, amassing a large user base and managing hundreds of millions in assets, demonstrating the platform's success and the trust investors place in it.

CrowdStreet

4.5 stars
Fees Free registration, varying fees for independent projects, and 0.50% to 2.5% Crowdstreet funds annually.
Best For Accredited investors
Benefits
Overview
Company
  • Exclusive access to institutional-quality commercial real estate projects.
  • Direct investment opportunities allow for potential higher returns.
  • In-depth project information and sponsor backgrounds for due diligence.
  • Interactive webinars and forums for investor education and engagement.
  • Customized investment portfolios based on individual risk tolerance and goals.
  • No upfront fees for investors, ensuring transparency in costs.
  • Offers a variety of investment structures, including funds and individual deals.
  • Strong track record with billions invested and numerous successful exits.
CrowdStreet connects accredited investors with high-quality commercial real estate investments, focusing on larger-scale projects that were previously accessible only to institutional investors. The platform provides a rigorous vetting process, ensuring only the most promising projects make it to the marketplace. With CrowdStreet, investors can directly fund developments in burgeoning markets, from multifamily housing to office spaces and retail centers.
CrowdStreet, based in Portland, Oregon, was established in 2014 by Darren Powderly and Tore Steen. The platform has quickly risen to prominence in the commercial real estate crowdfunding space, distinguishing itself through its high-quality offerings and robust investor education. The company's mission is to open up access to commercial real estate investments, providing accredited investors with opportunities previously out of reach.

EquityMultiple

4.5 stars
Minimum Investment $10,000
Best For Commercial real estate
Benefits
Overview
Company
  • Offers a range of investment options, including debt, equity, and syndicated deals.
  • Backed by industry veterans, providing a layer of credibility and experience.
  • Lower minimum investment compared to traditional real estate funds.
  • Transparent and detailed reporting on investments for easy tracking.
  • Personalized customer service with dedicated account managers.
  • Opportunities for both short-term income and long-term growth investments.
  • Rigorous due diligence process for each investment opportunity.
  • Innovative investment structures, such as Opportunity Zone funds, for tax advantages.
EquityMultiple merges traditional real estate investing with modern crowdfunding technology, offering accredited investors a platform to engage in diversified real estate opportunities. With a focus on commercial properties, EquityMultiple provides access to both debt and equity investments, catering to various investment preferences and strategies.

The platform emphasizes transparency, thorough vetting of deals, and investor education, ensuring a comprehensive investment experience.

EquityMultiple was co-founded by Charles Clinton and Marious Sjulsen in 2015, with a vision to make real estate investing more accessible and efficient through technology. The New York-based company leverages its founders' extensive experience in real estate law and investment to curate a selection of high-quality investment opportunities, ranging from urban redevelopment projects to stable income-generating properties.

Wrap-Up

PeerStreet has undeniably made a mark in the real estate investment landscape by offering a unique platform for debt investments, catering to accredited investors seeking to diversify their portfolios with real estate loans. If this sounds like a great match for you, click here to get started.

With that being said, the platform's focus on debt and the exclusivity for accredited investors may not align with every investor's goals or accessibility needs.

For those looking for broader options, including equity investments, lower entry points, or offerings for non-accredited investors, platforms like Fundrise, CrowdStreet, and EquityMultiple present compelling alternatives.

Each platform has its strengths, from Fundrise's accessibility and diversified portfolios to CrowdStreet's direct investment opportunities in commercial real estate and EquityMultiple's blend of debt and equity offerings.

Ultimately, the choice between PeerStreet and its competitors hinges on individual investment goals, risk tolerance, and the desire for diversification within the real estate sector. Explore more alternatives in my best real estate crowdfunding platforms.

Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He’s a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.