13: PeerStreet vs. Lending Club - a podcast by Sam Marks & Johnny FD

from 2016-07-19T17:22:05

:: ::

Interview with PeerStreet's co founder and COO, Brett Crosby which is the Peer-2-Peer lending platform that secures the loans against the borrower’s real estate. PeerStreet is unique in that to date they have never experienced a default, and have loan terms of under 12 months compared to other platforms that have minimums of 3 years. Brett and his Co-Founder Brew Johnson have the perfect background of experience between law, tech, and real-estate. In fact, Brett was the brains behind Google Urchin, which was acquired and became Google Analytics.

In this episode we discuss how the P-2-P lending space is changing, and how technology can enable more efficient deal flow and better lender-borrower matching. Enabled by sophisticated technology, PeerStreet uses Big Data to cross reference over 20 years of submarket data in order to vet and stress test each loan. We also do a deep dive into our 16 loan positions we currently have invested through the platform and what we can expect as an investor. The episode represents a great learning opportunity on the types of modern investing opportunities that we are passionately looking to discover and share.

*since we recorded the podcast, PeerStreet did have to finally file a notice of default on a loan, but still has zero losses to date.

Relevant links for guest:

Twitter
LinkedIn
About the PeerStreet team

Where are we:

Brett – Manhattan Beach, California
Sam – Singapore

Discussed (relevant links):

PeerSteet Explainer Video
PeerStreet website
AlphaFlow

Time Stamp – Topic:

02:45 – Initial investment into Lending Club
08:00 – Pausing automated investing in Lending Club
12:30 – Available investment PeerStreet dashboard
17:00 – Sam’s PeerStreet investment strategy
22:30 – What PeerStreet is
23:45 – About the turmoil in the lending P-2-P lending industry
24:30 – Why PeerStreet is a better asset class than Lending Club
27:20 – PeerStreet advantages over other platforms
28:40 – First lien definition
31:45 – What happens in the case of a default
34:30 – What attracted Sam to PeerStreet
35:15 – Brett’s background at Google
36:15 – Technology enabled advantage
36:30 – How PeerStreet was co-founded
37:15 – What is under the hood of PeerStreet?
39:15 – Vetting loans through technology
40:00 – Using Big Data to stress test loans
41:45 – Peer-2-Peer lending bubbles?
42:00 – Loan to Value ratios
43:00 – Valuing the properties through 3^rd parties
44:00 – What markets are hot on PeerStreet?
45:45 – Details on Sam’s account on PeerStreet
48:00 – The beauty of robo-investing
49:30 – How and when yields are paid out
51:10 – Loans through the platform
52:30 – Strategy to utilize on PeerStreet
54:00 – Brett’s recommendation for getting started
59:20 – Ways to find out more about PeerStreet
59:59 – Get in contact with PeerStreet support

If you enjoyed this episode, do us a favor and share it! Also if you haven’t already, please take a minute to leave us a 5 star review on iTunes and claim your bonus here!

Further episodes of Invest Like a Boss

Further podcasts by Sam Marks & Johnny FD

Website of Sam Marks & Johnny FD