On March 24 2016, Patch of Land announced that their platform has now originated $100 million+ in short term loans. As one of the leading real estate crowdfunding platforms, Patch of Land helps real estate professionals buy, fix, and sell undervalued residential and commercial properties. An even more exciting statistic is that $25 million has already been repaid to investors in the form of principals and interest!
“In 2013, we launched with the short-term, 12-month loan, which served to fill a huge gap left by banks and traditional lenders,” said Jason Fritton, CEO and co-founder at Patch of Land, “and we’re now launching a 24-36 month ‘mid-term’ product, which fulfills a growing need for medium term lending options.”
One of Patch of Land’s goal is providing individual accredited and institutional investors access to real estate debt loans and higher returns. As of today, the platform accepts projects from every state, with the exception of Arizona, Nevada, and South Dakota. (If you are looking to diversity your investments with a real estate loan, you can find out more about how Patch of Land works here.)
The company’s new mid-term loans are a good option for real estate sponsors who may not qualify for a longer term loan where they manage the property and rent it out. These shorter loans are great for smaller companies to start out and show investors what they can do. Patch of Land has already proven huge borrower demand for these mid-term loans, with approximately $40 million in loan interest after making a recent announcement in a beta email campaign.
“This product enables Patch of Land to better serve existing and new borrowers who need flexible loan solutions for projects that require repositioning, stabilization, and tenant placement in anticipation of conventional, long-term financing. For investors, this new product provides a slightly longer hold period on projects that have tenants in place, cash-flow, and lower loan-to-value than a 12-month rehab loan.”
Patch of Land is the first to platform online that has chosen to focus exclusively on real estate debt investments and offer sponsors prefunded loans. This saves developers time and saves money for investors, with more accessible real estate investments starting at $5,000.
Check out the new eBook to learn more about real estate crowdfunding, other platforms, and rules for platforms, sponsors, and investors: Real Estate Crowdfunding Explained.
