Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 1 year ago on . Most recent reply

User Stats

2,893
Posts
2,330
Votes
Caroline Gerardo
  • Lender
  • Laguna Niguel, CA
2,330
Votes |
2,893
Posts

Peer Street Bankruptcy

Caroline Gerardo
  • Lender
  • Laguna Niguel, CA
Posted

I am sorry that Brew Johnson and Brett Crosby's concept for peer to peer lending, venture capital firm Andreessen Horowitz, and all investors who provided their hard earned cash now have to wait for pennies on the dollar.  I'm sad for the employees as well.

If you plan to invest in syndications, fintech lending, and alternative ways to invest in real estate be VERY careful now. The bankruptcy and closing of mortgage companies in the past year are still happening. This other side which is not regulated in the same way is in for trouble. Multi family, office, hotel, and many commercial loan sectors are in a spiral downward. 

No one likes to hear negative predictions. PLEASE save your cash. Don't pay thousands of dollars for an idea, a class, a mentor. Making money on a hypothetical spread left the mall two years ago.

Be careful paying for a $2000 appraisal on a commercial endeavor or any large upfront fee. Look to the ownership: have they closed thousands of deals that you can verify? A photo with a Lamborghini and boasts are meaningless. Peer Street struggled with Underwriting, collecting payments, and the math that an accounting firm calls audited while from the outside everything looked pretty. 

A short list of competitors : Century Capital. Finitive. Kiavi. YieldStreet. AlphaFlow. Roofstock. Groundfloor. Hometap.

My guess is you won't be able to cash out today. Support where you invested as best you can and pray.

Any other ideas?

    Most Popular Reply

    User Stats

    17,873
    Posts
    15,381
    Votes
    Chris Seveney
    • Investor
    • Virginia
    15,381
    Votes |
    17,873
    Posts
    Chris Seveney
    • Investor
    • Virginia
    ModeratorReplied

    @Caroline Gerardo

    I think a lesson people will need to continue to learn is they get sucked in by who is part of a sponsor or some cool idea, but again forget to read the fine print. Based on what I read your investment was essentially an unsecured debt for the company which invested in secured debt.

    Anytime I read offerings like that I just want to cringe. Typically those offerings are loaded with fees and a structure whereas the sponsor makes all the money and has zero risk. Not saying that is what happened here but I wouldn’t be surprised

    • Chris Seveney
    business profile image
    7e investments
    5.0 stars
    16 Reviews

    Loading replies...