Last Updated: 06/21/2024
SuperMoney User Recommendation Score -92
Strongly not recommended13 total votes
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Highlights
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
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Learn MoreSuperMoney Net Recommendation Score
SuperMoney users don't recommend this product, giving it a user recommendation score of -92, or 1.2 on a 5-point rating scale.
-92
-1000+100
No one recommends
Everyone recommends
Patch Of Land Community Reviews
Would you recommend Patch Of Land to your friends?
CT
Cor T.
Aug 12, 2022
May or may not recommend
BEWARE of this company first known as PATCH OF LAND now PATCH LENDING??? CHAD JOHNSTONE who looked after my application is a deceitful individual who I want to be flagged so NOBODY else goes thru what he has put me thru and put all the blame on me.
I submit an application but eventually it come back rejected but they still proceed with an appraisal which was ...Show More
U
Anonymous
May 22, 2022
May or may not recommend
We are currently doing a rehab at the moment and Patch of Land hasn't responded to us about our draws in 2 weeks. All of our contractors are waiting to get paid and Patch of Land doesn't care. All their lines go to voicemails and nobody calls back. We aren't new investors and we know what we are doing when it comes to construction and making the numbers work. This ...Show More
Randy L.
Oct 15, 2020
May or may not recommend
I generally do NOT write reviews, but I really want to do good by warning other potential investors to NOT invest with Patch of Land. My experience with Patch of Land is a particularly bad one.
Of the 10 loans I have invested with Patch of Land, 6 have been in default for more than 4 years. When I called them, they assured me that there would be no ...Show More
Mark Z.
Jul 22, 2020
May or may not recommend
Three of my loans have been in default for years - no end in sight. Moreover, they have stopped monthly updates for 4 months now. Here is a complete typical recent update: "Loan status as of June 1st: Foreclosure". AVOID.
LC
Lee C.
Jul 11, 2020
May or may not recommend
Be forewarned. This company is a sham and they steal investors money regularly. I invested several times with POL, and lost principal on every loan. I Received the below email message from POL today..
Mind you, this was a 10,000 loss. Total investor loss on this deal = $530k
“Regarding your investment in Tower Lakes Purchase and Rehab, Patch of Land has taken extraordinary measures to ...Show More
U
Anonymous
May 21, 2020
May or may not recommend
Patch of land froze all the rehab draws for their clients. Clients paid points for a full rehab loans but not getting any draws while paying loan monthly. Terrible service.
U
Anonymous
Jan 2, 2020
May or may not recommend
Had 20% default rate with Patch of Land (2 out of 10 investment). The defaults took over 3 years to clear and the loss was greater than the gain on all investments. Their transparency is bellow my expectations.
Igor R.
Dec 16, 2019
May or may not recommend
Made 2 investments, one ended up in foreclosure and is still in the process; the other one was lost due to borrower filing bankruptcy.
U
Anonymous
Oct 16, 2019
May or may not recommend
I invested $20K for a one year investment. It’s been three years and I haven’t received any interest and I’m out $20K because the borrower defaulted. When I call Patch of Land there is no answer so cannot speak to anyone about the status. Do not invest with them!!!
DS
Deedee S.
Jul 17, 2019
May or may not recommend
I'm not sure how companies become brokers but this company is not a good business partner if you're looking to do a deal. The delay tactics, the ridiculous demands and a very rude and incompetent manager of draw. I will look elsewhere to fund a deal.
SA
Sam A.
May 2, 2019
May or may not recommend
Complete waste of time. Im lucky ..4 of my 5 loans paid off. The 5th is in lawyers hands because the borrower split his land in two and sold one of the buildings illegally. Patch says it has title insurance... been trying to resolve for close to two years..still waiting! What Ive lost I made in interest. Loved these guys at the start. Id stay away.
Brandt G.
Aug 1, 2018
May or may not recommend
They missed the closing date they provided to me, didn’t even do so much to even set up an appraisal, then backed out completely after a month from initially applying. They did not respond to emails for over 2 weeks. My financial picture & credit score was, and is, excellent. They simply don’t have good organization. The left hand doesn’t know what the right hand is doing. This should’ve been ...Show More
U
Anonymous
Aug 19, 2017
May or may not recommend
Patch of Land appears to have excellent loan choices and options. New loans for investment are made available approx 2-3 times per week.
Returns are among the highest of all the major online Real Estate Crowdfunding sites, but i dont know if this is because they pocket less fees or for some other reason.
At first, Patch of Land had issues with a high default rate on quite a few of ...Show More
Showing 13 of 13 reviews