LOS ANGELES--(BUSINESS WIRE)--Patch of Land, a leading online marketplace lender for real estate, today announced that an East Coast credit fund has signed an agreement to purchase loans in a forward flow arrangement. This marks a significant milestone for Patch of Land as this demand for loans supports the firm’s rapid origination growth. The credit fund extensively diligenced the landscape of lenders and ultimately decided to partner with Patch of Land in its first foray into the P2P - or marketplace lending - space.
“We are thrilled to announce this important milestone for the impact it has in the online real estate financing space,” said Jason Fritton, co-founder and CEO of Patch of Land. “Patch of Land will now be able to fill loans on a programmatic basis, creating a higher level of validation for the entire industry.”
Using large scale data and nationwide reach, Patch of Land is creating a new level of standardization-- and a new asset class for large scale purchasers.
“Proprietary risk scoring and pricing models provide a reliable, consistent, homogenized product,” added Jillian Jaccard, EVP of business development at Patch of Land. “This product appeals not only to institutional buyers, but also the company’s individual investors.”
“The crowd-- our individual accredited investors who have thus far provided over 95 percent of our loan funding-- remains a priority to the company,” emphasized Fritton. “We will continue to deliver quality product for the portfolios of large institutional players and the thousands of accredited investors who invest in our loans every day.”
Since issuing its first loan in October 2013, Patch of Land has been a recognized leader in the online real estate lending space. In just over two years, the company returned more than $20M of principal and interest payments to investors with no loss of principal. To date, the company has funded more than 200 projects, with an average blended rate of return to investors of 12 percent, enabling thousands of investors across the country to diversify their portfolios with short-term loans secured by real estate assets.
Institutional forward flow agreements such as the one announced today show that the data-driven models being applied by Patch of Land instill confidence in the products offered, the company and the future of bringing a previously obscure and fragmented financial instrument into a scalable investment opportunity. For the borrowers and sponsors on the other side of the equation, this means Patch of Land can accelerate its borrower funding-- adding even more speed and opportunities to expand into working with new sponsors, brokers and even local lenders.
About Patch of Land:
Patch of Land (POL) is a leading real estate marketplace lender that uses automated data driven underwriting to make smarter and faster lending decisions. Professional real estate borrowers can expect a loan to close hassle-free in as little as 7 days. Investors can expect a risk adjusted return with extensive available data to support the underlying credit decision on each loan. Patch of Land solves the problem of inefficient, fragmented, and opaque real estate lending with proprietary technology and data-driven processes that provide transparency, and scalable, efficient underwriting. Patch of Land offers investors easy diversification into real estate with low minimums and a best-in-class, secured loan structure, while providing borrowers access to reliable capital and prefunding for residential and commercial real estate projects. For more information about please visit PatchofLand.com
