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.
Patch of Land was conceived by co-founder and e-commerce entrepreneur, Jason Fritton, early in 2011 as a means to help rescue parts of Chicago that were devastated by the recent real estate crash, while still providing lucrative returns tied to real estate. Jason worked with Congressman McHenry and Congressman Dold to help pitch and lobby for the crowdfunding exemptions being written into the upcoming JOBS Act, which could provide a positive force in our communities while also encouraging capital formation for new businesses.
While the JOBS Act was being written and then signed into law by President Obama in 2012, Jason partnered with his brother Brian Fritton, an enterprise-level software engineer who’s built websites for brands such as Warner Music Group, Maui Jim and Ghirardelli. Brian, who at the time was leading a development team for a major search engine’s new venture initiative group, architected the core of the platform that runs Patch of Land today. Jason and Brian spent nights and weekends at Chicago’s 1871 incubator and began to put plans for Patch of Land into action.
On October 15, 2013, Patch of Land launched its first deal, an 18% short-sale in New Jersey that was funded within two days. They followed up with a property in Georgia being rehabilitated by a nurse, who then rented it out to a U.S. Army veteran. The road to rebuilding America through Patch of Land’s crowdfunding portal began, and has been increasingly gaining momentum ever since.
Frequently Asked Questions
When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by Patch of Land. Once Patch of Land accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Patch of Land in exchange for your shares. At that point, you will be a proud owner in Patch of Land.
Preferred equity is usually issued to outside investors and carries rights and conditions that are different from that of common stock. For example, preferred equity may include rights that prevent or minimize the effects of dilution or grants special privileges in situations when the company is sold.
A convertible note is a unique form of debt that converts into equity, usually in conjunction with a future financing round. The investor effectively loans money to a startup with the expectation that they will receive equity in the company in the future at a discounted price per share when the company raises its next round of financing.
To learn more about startup investment types check out “How to Choose a Startup Investment” in our academy.
To make an investment, you will need the following information readily available:
- Personal information such as your current address and phone number
- Employment and employer information
- Net worth and income information
- Social Security Number or government-issued identification
- ABA bank routing number and checking account number (typically found on a personal check or bank statement)
Because Patch of Land is offering its securities under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.
Until a closing occurs, you may cancel your investment at any time, for any reason. You will receive an email when the closing occurs and your shares have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page.
Currently there is no market or liquidity for these shares. Right now Patch of Land does not plan to list these shares on a national exchange or another secondary market. At some point Patch of Land may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when Patch of Land either lists their shares on an exchange, is acquired, or goes bankrupt.
You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement.
This is Patch of Land's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity.
This investment is highly speculative and should not be made by anyone who cannot afford to risk the entire investment amount. In addition to these risks, you should carefully consider the specific information and risks disclosed in Patch of Land’s profile.