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At the same time people’s comfort with online banking products and services are on the rise, regulatory pressures are forcing our major banks to reduce their property exposure in certain areas.
Enter Peer Estate, Australia’s leading peer-to-peer (P2P) property finance marketplace. It’s an online marketplace which matches property developers and investors (borrowers) with high net worth individuals and wholesale investors (who replace the banks, and become the lenders).
I spoke with Peer Estate’s founder/CEO Adam Broder about the P2P property landscape in Australia, and how it differs to the markets in US and Europe where P2P is more advanced.
The depth of Adam’s knowledge is impressive. Our discussion will be of interest to anyone interested in learning more about the marketplace Adam has developed, as well as more about alternative finance in Australia’s commercial banking sector more generally.
We cover a lot, including:
- How Peer Estate is the antithesis of your standard tech start-up
- The opportunities emerging now that our major banks are exiting markets they were heavily active in only 12/24 months ago
- What the Peer Estate application process looks like for borrowers, and what the investment process looks like for lenders
- Peer Estate case studies, including a Port Melbourne development project requiring acquisition/construction finance, and a foreign income applicant seeking a 60% loan to complete an off-the-plan investment purchase
- How pre-funding on Peer Estate works, and how deals that major banks deliberated on for 6 months can get approved within 5 days
- Matching investors with certain risk appetites with suitable loans for them to fund
- How P2P differs from crowdfunding or investing in a mortgage fund; and
- The benefits Peer Estate has of being backed by the leading real estate investment management firm Qualitas
Without further ado, please enjoy my half hour chat, with Adam Broder…
