Peer Real Estate Lending Marketplace
After the real estate market crashed in the U.S., Jason Fritton, a successful e-commerce entrepreneur wanted to do something to repair the community coming out of the devastation. The JOBS Act was passed in 2012 by congress, making way for real estate crowdfunding, giving Jason the opportunity he was looking for. Jason then joined forces with his brother, Brian Fritton, an award-winning software engineer with the same enthusiasm for encouraging growth through economic development and state of the art technology.
Patch of Land came into existence with a goal: to solve the problem of slow, inefficient, fragmented, and obscure private real estate lending by using the latest technology, data, and process efficiency to more accurately assign risk profiles and project viability, while greatly reducing the time and cost of loan underwriting for borrowers with real estate projects that are overlooked or rejected by banks and traditional lenders.
Patch of Land is a crowdfunding real estate platform via its peer-to-peer online marketplace, offering various typologies of secured real estate debt on assets backed by first position liens and personal guarantees. Patch of Land helps investors connect with borrowers on their platform which is backed by the best in class security features. Patch of Land originates, underwrites, and services loans, offering them back to accredited investors through crowdfunding exemptions of the JOBS Act and SEC regulations.
Patch Of Land Investment Options and Special Features
Patch of Land is a peer-to-peer real estate lending marketplace that brings together accredited and institutional investors looking for high return investments, with short term, asset-collateralized investments to borrowers who seek investments in their rehabilitation process of properties across America.
Patch of Land provides all supporting information and documents for each investment available on its platform. This allows investors to perform their own due diligence for each investment, creating a proper channel for the flow of information between investors and borrowers. All investments available with Patch of Land are short term debt investments. Short term debt investments are less risky than long term debt investments, as it reduces the chance of inflation. All Patch of Land deals are pre-funded and borrowers get money to begin their project at closing, while investors start earning interest the moment they invest in a property.
Most of the deals available with Patch of Land are 12-month residential and 18-month commercial deals. With Patch of Land, there are no fees, whether you are a borrower or an investor. Instead, Patch of Land deducts 1-2% of the interest distributions from the borrowers, which is similar to a traditional loan marketplace, with fees for appraising listed properties, closing costs, and origination points already included in each deal.
Patch of Land has a strict due diligence and underwriting process. They use traditional methods for the underwriting process that includes third-party appraisals with a complete value analysis of the property. They evaluate the data to better understand the risk involved and expected gains of each investment.
Patch Of Land Performance
Since its inception in 2014, Patch of Land has been on the upward trajectory. Their performance graphs (seen below) have few setbacks, which only enhances their credibility. In order to diversify the investment portfolios, Patch of Land invests in real estate throughout America.
Past Patch Of Land Past Investment Opportunities
How to Start Investing with Patch Of Land: A 5 Minute Application Process
- Fill out the Application– If you need to borrow capital to fund your real estate project using Patch of Land, the first step is to complete an application. You will need to give them a bit of info about yourself, the project, and your borrowing needs.
- Discuss the Opportunity – Next, a Patch of Land team member will contact you to discuss the project and your financial needs in detail to make sure it’s a good fit for you and for them. They will also answer any questions you may have; if all goes well you’ll be able to get the ball rolling on funding your project.
- Complete Loan Application Documents – After talking to the Patch of Land team member, it is time to complete the formal loan application.
- Process of Due Diligence – Once Patch of Land has reviewed your application, they will begin their process of Due Diligence. In most cases, the loan will be closed in a week. They claim that their processes are 100% transparent and that there are no hidden fees.
- Get Funded and Get Going – Since Patch of Land underwrites and funds projects with their own capital, they are a direct lender, ensuring the entire process is fast and smooth as possible.