PeerStreet, an online marketplace for real estate-backed loans, announced the launch of Residential for Rent loans, a new addition to its product suite for private lenders.
The 30-year term of Residential for Rent loans enables borrowers to secure long-term financing on residential properties for rent.
The 2018 Tech100 winner said the launch is a direct response to the fact that the rental market has grown as the more Americans have trouble securing financing to purchase a home.
Because of the product’s long-term investment opportunity, PeerStreet said it is currently offering it to its pool of institutional investors who have an appetite for this asset class.
For its private lenders, PeerStreet said the new product offers an opportunity to attract new costumers who are looking for long-term financing rather than short-term bridge loans, and to do more business with existing borrowers.
PeerStreet Co-Founder and CEO Brew Johnson said the company was excited about expanding its marketplace beyond bridge loans.
“This is a natural progression for us as a company as we increase our volume of transactions with institutional investors,” said Johnson. “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.”
COO and Co-Founder Brett Crosby said the product will benefit PeerStreet’s marketplace as a whole.
“More lenders means more loans, which makes it easier for investors to diversify their portfolios,” Crosby said. “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.”