Peerstreet vs. Patch of land

[Amir Navabpour]

I have money invested in both (investing in notes for slices of their loans). Previously, I noticed alot of discontent among posters on BP about patch of land, but I haven't had any problems (granted I only have one note), and Patch of land has lower LTV's and higher rates than Peerstreet. Wondering, among recent investors in Patch of land, what has been your experience?

[Judy Huang]

[Jay Hinrichs]

I think POL was way too agreesive coming out of the chute and probably has cleaned up their underwriting. 

Peerstreet.. at least when I was approved to bring them deals.. was simply a broker of sorts it was still up to me to find underwrite and fund the mortgage then they resold it 3 to 5 days later.. you underwrote it to their standards of course.

just not enough money in it for me.. as a broker especially if I have to put up 300 to 500k in cash and wait 3 to 5 days to get it back only to make 5 or 6k fee..  not a good use of time and money.  but others its their core business and this what they do.

[Mark S.]

I have been investing in both. In terms of delinquencies and foreclosures, I have had very good results with PeerStreet. However, lately I have been moving over to POL because the interest rates on PeerStreet have drifted downward compared to POL. The interest rates on PeerStreet have not been high enough to compensate for the risk. Also, there is intense competition for loans on PeerStreet. 

The jury is still out for me on POL delinquencies and foreclosures as my investments are fairly new. No problems yet, although I only started investing with POL in July. It does seem somewhat odd to me that POL loans do not fill up immediately like they do on PeerStreet despite better interest rates on POL loans. 

[Dave G.]

It's early for me, but my Peerstreet experience so far is questionable. Invested in 3 loans in Dec 2018 and 2 more in Jan 2019. 2 of the Dec loans are already delinquent and this is just 45 days after origination! How does that happen right out of the gate when you have borrowers with credit ratings of ~700 and 25% plus equity?? 

I only put in $1000*5 positions to test the waters and am glad I did. Unless the water warms up some, I see a short and unpleasant relationship with Peerstreet. 

[Jonathan Taylor Smith]

I've been on the borrower side of several loans with Patch of Land; however, I'm now seeking to invest with some of these platforms, so thanks for the excellent feedback on your experiences.

[Charles Gilman]

I have been with peerstreet for 1 year.  6 loans have been paid off.  At present I have 7 loans outstanding - 2 are in default, 2 are late 60 days, and 3 are current.  I am extremely disappointed that more than half of my loans are non-performing and will not be putting any new money into peerstreet.  Good luck to those that do.