Patch Of Land
in Crowdfunding Sites from Patch Of LandUnaffiliated
Patch Of LandUnaffiliated
in Crowdfunding Sites from Patch Of Land
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Patch Of Land Review
Patch of Land is a Peer-to-Real-Estate (P2RE ) lending marketplace that matches accredited and institutional investors seeking high-yield, short-term, asset-collateralized investments to borrowers seeking more timely and consistent sources of funding for rehabbing properties across America. The company is based in Los Angeles, California, and was launched in 2013. Patch of Land is a BBB accredited business with an A rating.
How Does Patch of Land Work?
This online marketplace allows investors to finance real estate projects more efficiently by assigning risk profiles and project viability assessments, while at the same time reducing the overall cost. The risk assessment and data management technology used by Patch of Land allows real estate projects that don't fit the profile of traditional lenders to receive the financing they need to get started.
What Are Patch of Land's Interest Rates?
Patch of Land takes a 0 – 2 percent interest on the interest distributions made by borrowers to make a profit and cover costs. It also charges fees when loans default or if borrowers are late making payments. Patch of Land does not charge transaction fees or campaign success fees as many crowdfunding platforms do. They work much more like a regular loan marketplace and charge fees for property appraisal, closing costs and origination points.
How Much Money Can I Borrow from Patch of Land?
Maximum funding is calculated on a case-by-case basis. However, the minimum loan amount is $100,000 and there must be a loan to value ratio of at least 80% to qualify. Loan terms vary from 1 to 12 months and extensions of 6 months are available.
Which States Does Patch of Land Operate In?
Patch of Land currently operates in all states except Arizona, Minnesota, Nevada, South Dakota and Vermont. However, Patch of Land is taking steps to also accept projects in those states soon.
What Is Patch of Land Application Process Like?
Patch of Land accepts applications from lenders and borrowers. Borrowers must complete an online application form that requires personal and financial information, such as your credit report, proof of funds, property inspection report, a list of comparable sales, a construction budget and general liability insurance, to mention a few. Completing the application form should take 30 seconds or less.
Borrowers must make a minimum down payment of 20% and the after renovated value must be less than 65% of the loan amount. There are no pre-payment penalty fees but borrowers must provide a personal guarantee for the loan to be approved. These requirements are negotiable, depending on the strength and potential for profit of a project.
How Is Patch of Land Better than Other Lenders?
Patch of Land allows investors to diversify their portfolio with real estate investments simply and inexpensively. This gives entrepreneurs the opportunity to find the capital to get projects off the drawing board and lenders to earn anything from 10 to 18 percent interest while still getting the satisfaction of contributing to something worthwhile