On the new marketplace, which is currently operating as a pilot program, investors will have the ability to sell their fractional positions in loans, and therefore, have more flexibility in adjusting their portfolios as needed to achieve investment goals.
At first, only select loans will be available for sale on the Secondary Marketplace. But, the ultimate goal is to build out the marketplace so that investors can trade real estate debt investments with as much ease as trading stocks, the company noted in a press statement.
“This pilot launch feels like a ‘one small step for PeerStreet, one giant leap for the industry’ type of moment,” Brett Crosby, chief customer officer and co-founder of PeerStreet, said in a statement. “We believe making real estate debt as accessible and easy to trade as stocks will have large ramifications on the industry and open up more avenues for wealth creation for market participants.”
In January 2021, the company began addressing investor interest in more liquid assets with the launch of PeerStreet Pocket, a high-yield cash investment product with monthly liquidity and no minimum balances or fees.
“This is just the beginning of what this feature can become,” Brew Johnson, CEO and co-founder of PeerStreet, said of the Secondary Market launch. “If we can build a robust secondary marketplace where investors can buy and sell digital assets tied to real estate loans, it may end up having a significant impact on our entire industry.”