Loan proceeds are used to rehabilitate residential and commercial real estate properties across the country. Loans are secured by the underlying property and personal guarantees from the borrowers. Patch of Land then matches those loans with accredited and institutional investors for funding. Loans are issued for terms of 12 months at rates ranging from 10 to 18% APR, paid monthly to investors.
Patch of Land is built on strong foundations in technology: scalable systems, underwriting automation and algorithmic deal matchmaking. Our proprietary technology is reducing underwriting time, while creating efficiencies and increasing transparency to the real estate lending industry. We will be issuing and funding thousands of loans easily, automatically, and with accurate risk profiling and pricing.
In keeping with our support of the crowdfunding movement, Patch of Land has chosen to become the first real estate crowdfunding platform to crowdfund, or "crowdfinance" itself because, more than ever, we fiercely believe in crowdfunding, in online capital markets, and in the power of partnerships with other disruptive, progressive leaders in the technology finance field – like SeedInvest.
In the 12 months ending October 2014, Patch of Land has completed 45 loan projects worth $9.0 million across 9 States. We've consistently funded over $1 million in loans every month for the past 5 consecutive months, with $1.46 million in funded loans in October.
Our combination of national access, full transparency and modular, scalable systems is bringing daylight and efficiency to a historically fragmented, opaque and poorly serviced, but enormous, market.