This tracks the results of the investment and keep up with news on the company and its industry. Here are the results as of February 24, 2017 (roughly 10 months in to the experiment).
Since starting this account in mid-April, there has been a bit of interesting action. Four loans have been paid off early – not a great thing for investors because you presumably wanted to keep collecting interest instead of waiting for that money to be invested elsewhere. Also, returns will tend to lag in the short term because you get paid at the end of each month.
On the other hand, the money has automaticaly deployed across five properties, and the account value of $10,718 means that we are indeed making reasonable returns.
I set my account to “automatic investing” mode, with the following settings:
If there is spare cash in the account, the PeerStreet system will automatically put it into qualifying new offerings as they enter their system, and send me an email with the news. I then have a day to review and opt out of anything that doesn’t look quite right to me.
A conservative banker friend taught me to look for low loan-to-value ratios, and to prefer properties that are in healthy but not hopelessly bubbly markets. Admittedly, some of my first investments are still in insanely expensive coastal LA projects, so we can see how those go as well.
If you have questions, comments, or suggestions, feel free to leave them in the comments and we can work together to make this experiment more educational and comprehensive. Thanks for reading and thanks to the PeerStreet staff for helping to teach me all this new stuff so far.
A May 2017 Update/Bonus
If you’re interested in trying out some investing with PeerStreet yourself, I have negotiated a special offer with the company where they give a double signup bonus to you (two 1% yield bumps), and none to me. (I still have no affiliation with the company, but figured having the only site where this better offer is available might bring more people to my blog.) – here’s the URL for that: