- What is P2RE?
A Peer to Real Estate (P2RE) lending marketplace allows borrowers and investors to directly engage with each other without the need for the bureaucracy and costs of the middle-man (often, the big banks).
Because the Peer Estate marketplace specialises in one form of finance – real estate finance – we are specialists who can assess and understand the risk and are solely focused on helping real estate investors and borrowers. We don’t sell credit cards, term deposits or car finance.
- Isn't the Peer Estate platform just crowdfunding?
Simply, no, this is not crowdfunding. We are facilitating secured and analysed lending and investment products. Crowdfunding is essentially donations. When crowdfunding, the funder (investor) usually has no right to receive anything in return and has no security for the donation. Furthermore, the user of the funds (borrower) has no certainty that they will receive all the funding they need.
Unlike crowdfunding, the investor on the Peer Estate platform benefits from security and the borrower is assured of the finance as every loan on the Peer Estate platform is pre-funded to ensure certainty of funding.
- How is this different to a property mortgage fund?
Simple: choice and transparency. Unlike property mortgage funds (which aggregate a number of property mortgage loans within the one fund), you can choose whatever particular property mortgage you want and you will have all the pertinent detail provided to you.
- Who can invest?
At this stage, we are accepting investments from Wholesale Investors only. You can confirm your status on your dashboard after you log in.
Generally, people investing in securities and other financial products must, under the Corporations Act 2001, be given a regulated disclosure document such as a prospectus or product disclosure statement. However, the Act has some exemptions from these requirements.
One of those exemptions is the offering of financial products to a person (either a natural person or a legal person) who is the subject of a current certificate from a qualified accountant certifying they are a wholesale client. To receive this certificate, the accountant must confirm that the person:
- had a gross income of $250,000 or more per annum in each of the previous two years; or
- has net assets of at least $2.5 million.
If the amount invested is more than $500,000, the person is considered to be a wholesale client and an accountant’s certificate is not required.
You can also refer to the ASIC website here for further information.
- Who can borrow?
Do you own any real estate and need funding against it? To buy it? To hold it? To refurbish it? To develop on it? We are not a bank which means we don’t have their restrictive rules and inefficient processes. All we do is assess the risk and if we think it is suitable, we provide funding.
We undertake due diligence to ensure both we and our investors are comfortable. First mortgages, second mortgages or equity; land, investment or development; residential, commercial or retail. If it’s property and it makes sense, we’ll fund it.
- Do you have a licence?
Qualitas, which provides investors with participations in the loans via the subparticipation agreement, is the holder of an Australian Financial Services Licence. Peer Estate operates as an authorised representative under Qualitas' Australian Financial Services Licence and provides management and day to day administrative and operational advice to Qualitas in relation to all loans. We take our licensing responsibilities seriously.
Fees and charges
- How much do you charge?
We charge borrowers an appropriate interest rate and fee structure to match the risk of the transaction. This is no different to any other type of property lending.
We retain a portion of the interest rate and/or fee before passing it on to investors.
All fees and charges will be noted under each transaction's detail page.