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PATCH OF LAND
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Patch of Land atch of Land is a real estate lending marketplace that P
“hard money” lenders, that typically operate with a limited geographic reach and have yet to adopt state-of- the-art technology. The company was co-founded by current CEO, Jason Fritton, a suc- cessful e-commerce entrepreneur with a passion for helping to repair communities devastated by the hous- ing crash. Jason Fritton was an early supporter of crowdfunding capital formation exemptions that would later become a part of the JOBS Act, a 2012 law that helped pave the way for what has become known as real estate crowdfunding. Patch of Land has emerged as one of the nation's leading private money lenders origi- nating loans in 44 states. In addition to originating loans, the company also provides accredited investors access to a previously difficult-to-reach as- set-class through fractional owner- ship of loans available on the compa- ny’s crowdfunding portal. To be sure, the real estate crowd- funding sector where Patch of Land operates has become competitive in recent years as startups emerge to meet the needs of an evolving real estate investment marketplace. These online portals often have dif- ferent target customers and operate using different business models, and Patch of Land has become a leader in the space. Patch of Land’s business model is
to fully fund real estate loans before offering them to investors on its proprietary crowdfunding platform. About 75% of its loans are for sin- gle-family residential property with the balance consisting of multifamily and commercial properties. Patch of Land underwrites and funds all of its loans, so the company is able to offer borrowers a quick decision on loan applications and is able to fund a loan in as little as seven days. Here’s a quick look at what Patch of Land has achieved to-date: • Over 2,000 closed loans, with an average loan size of $450,000 • $800 million in originations on properties valued at over $1.2 billion • $200 million returned to in- vestors with a realized rate of return of 10.0% • Lending in 44 states with loans funded in every state Patch of Land is committed to efficiently serving the needs of res- idential and commercial real estate developers seeking financing and institutional and individual investors who understand and appreciate the high yields provided by investing in asset-backed loans. •
originates residential, multifamily and commercial real estate loans by leveraging proprietary technology to support its innovative crowdfunding investment platform. In addition to offering mortgages on non-owner occupied residential and commer- cial properties, the company allows investors the opportunity to achieve attractive yields by purchasing frac- tional ownership of their loans with as little as a $5,000 investment. Historically, real estate lending in the U.S. has been a slow, inefficient and difficult process with limited opportunities for real estate invest- ment property owners to tap into the debt market to grow their real estate portfolios. That began to change in the wake of the housing crisis as specialty lenders emerged to meet the needs of real estate investors who sought opportunities to invest in and rebuild the nation’s real estate market post-crash. Patch of Land, which began providing loans in 2013, is different from traditional banks and nonbank mortgage lenders in that it uses an advanced online platform and proprietary technology to facilitate its underwriting and lending process. Its online platform provides efficien- cies, speed, 24/7 access, transpar- ency and lower costs than traditional
30 | think realty magazine :: july / august 2019
thinkrealty . com | 31
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