Peer-to-peer lending platform PeerStreet has lowered the minimum sum needed to invest in its real estate-backed loans to $100, the company announced Monday.
The update, which affects the company’s Automated Investing feature, allows consumers to invest in real estate without owning properties directly. Founded in 2014, PeerStreet aggregates loans from private lenders, accredited investors or entrepreneurs in order to offer lower buy-in costs. Prior to today, investors needed to put in at least $1,000 to participate in the program.
As part of the update, PeerStreet has also added Cash Offer Loans and 30-Day Notes to its Automated Investment options. Cash Offer Loans provide the funding necessary for homebuyers to make an all-cash offer before their home sells while 30-Day Notes allows for more liquidity and short-term investments.
“We’ve answered the call from customers who have been asking for these Automated Investing features, which can help people diversify their portfolios with greater ease than ever before,” said Brett Crosby, co-founder and COO of PeerStreet, in a prepared statement. “These changes are designed to help more people get access to the investments they want.”
Last month, PeerStreet launched a new product line for private lenders who want to find borrowers looking to buy investment properties. According to PeerStreet, the company originated $1 billion in debt-based financing in 2018 and $2 billion since the company launched five years ago.