Crowdfunding RE - Peerstreet, Patchofland, etc...

[Carol D.]

Is anyone on BP currently investing in Peerstreet or Patchofland or other RE Crowdfunding sites and what has your experience has been?  Thanks for any advice, suggestions, or experience you've had.

[Ian Ippolito]

Originally posted by @Carol D.:

Is anyone on BP currently investing in Peerstreet or Patchofland or other RE Crowdfunding sites and what has your experience has been?  Thanks for any advice, suggestions, or experience you've had.

 LlI interact with thousands of investors across all of the platforms.
PatchofLandused to be one of the most popular but has become one of the most complained about. Investors claim that the default rate has skyrocketed versus the old days. 

I interact with thousands of investors across all of the platforms. PatchofLand used to be one of the most popular but has become one of the most complained about. Investors claim that the default rate has skyrocketed versus the old days.

PeerStreet became very popular after POL started to decline in popularity and still has many fans. However it too is now starting to get more complaints. Some investors are claiming that there are a lot more loans that are greater than 90 days late in paying (versus before). With these types of loans, it is a balloon payment, so if you don’t get paid the final payment is the largest and a big deal.

However, if you are new I would not actually recommend starting at the platform level. Otherwise your portfolio may end up very unbalanced versus if you take a top down approach. I would instead recommend figuring out what percent of your portfolio you want in real estate, and then dividing that up into the different strategies asset classes etc. (Core vs core plus versus value added versus opportunistic ... Equity versus debt... Multi family versus retail versus industrial versus self Storage etc). And then once you have that, then I would recommend taking a look at the top 2 to 3 platforms in each area to find investments.