Type:
Real Estate
Focus:
Debt

Overall:

Platform Provided Due Diligence:

Platform Fees:

Quality of Deals:

Website - Patch of Land

Fees - 1 point of interest & platform keeps origination fee

Phone - 888-959-1465

SEC REG - USES 506(c) Open Investments can be advertised and publicly discussed

Patch of Land is a crowd funding platform for real estate using a peer-to-peer online system providing opportunities in secure real estate debt. The real estate assets are backed with liens and guarantees. On the investing side, they look for alternative fixed-income properties, while on the borrowing side they help borrowers looking for alternative financing methods.

They underwrite loans and offer them to investors through the Jobs Act exemptions 506(c). At this time they are working with investors who are:

- Accredited.

- International.

- Institutional.

The company was founded by Jason Fritton, an e-commerce businessman. His goal was to help communities that had been hurt by the real estate crash. He worked for structural changes in the business to prevent it from happening again, and was one of the first advocates for exemptions that were included in the JOBS Act that passed in 2012. The exemptions allowed crowdfunding opportunities for investors that never existed before.

Teaming up with his brother Brian, a software engineer and Carlo Tabibi, a real estate developer, they worked toward creating a real estate lending marketplace that was efficient and effective. In September of 2013, Patch of Land raised $1.2 million through a Los Angeles-based private investment company.

If you do not agree with the Patch of Land review, please leave a comment below. 

 

Due Diligence & Discussions

Share your experience. Rate and comment!

Gary Rebensdorf

Nov 08, 2017

I have a couple new deals with them. One is a high end home in Hollywood Hills and another is a home being built in Montecito (Santa Barbara).  Both are new to me.  I believe there is plenty of Equity in Hollywood Hills and I am a sucker for seeing someone build properties.  Also believe there is equity there.

Patch of Land issues? Poor Communication.  I go to the CEO and CIO to resolve any issues now.

Also saw a deal where POL had investors fund a rehab/flip then wanted to write a new loan with a new batch of investors until the house could be sold.  They had some BS appraisal tied to it as the property was listed substantially below the appraisal.  I questioned it and they stated they don't question the appraiser as that is their job.

Doug D

Oct 10, 2017

I thought they were great when I first started investing with them in August 2014.  Things went as expected with regular interest payments and loan payoffs within a month or two of the original estimate.  At this point in time I have more nonperforming loans than performing loans with them.  3 of my loans were foreclosed and sold and I am waiting on the back interest and principal.  I think they tried to grow too fast and got lax on their underwriting.  I won't be investing any new money with Patch.

R D

Aug 24, 2017

Issues I've experienced:  no or limited progress reports; routine and apparently unconditional extensions of loans past maturity; very limited information on borrowers and their prior track records (all borrowers are anonymous); frequent late payments that PoL does not seem to address; even one overpayment to me that they had to call me about (they were right).  I've also had doubts after looking closely at some of their appraisals.  Be very careful on this site!   On the other hand, most of my investments have done well so far.  The few times I have spoken to PoL on the phone, their employees have been knowledgeable and professional.

Suhail Mohammed

Jul 07, 2017

there are a lot of concerns about PoL here. i have done about 5 deals so faar, 3 already paid off and 2 are performing as expected. But, I have been very conservative on th eplatform and chose on the ones with decent LTV and only in non judicial states.

Mary F

May 06, 2017

I liked POL early on, but am disillusioned. It seems they not only are not underwriting very well, but they don't appear to monitor or follow up on the performance of the investements. But what bothers me the most is the paucity of updates and the refusal to respond to emails. Will not be investing again.

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Patch of Land Patch of Land
Rated 2.3/5 based on 21 customer reviews

Website - Patch of Land

Fees - 1 point of interest & platform keeps origination fee

Phone - 888-959-1465

SEC REG - USES 506(c) Open Investments can be advertised and publicly discussed

Patch of Land is a crowd funding platform for real estate using a peer-to-peer online system providing opportunities in secure real estate debt. The real estate assets are backed with liens and guarantees. On the investing side, they look for alternative fixed-income properties, while on the borrowing side they help borrowers looking for alternative financing methods.

They underwrite loans and offer them to investors through the Jobs Act exemptions 506(c). At this time they are working with investors who are:

- Accredited.

- International.

- Institutional.

The company was founded by Jason Fritton, an e-commerce businessman. His goal was to help communities that had been hurt by the real estate crash. He worked for structural changes in the business to prevent it from happening again, and was one of the first advocates for exemptions that were included in the JOBS Act that passed in 2012. The exemptions allowed crowdfunding opportunities for investors that never existed before.

Teaming up with his brother Brian, a software engineer and Carlo Tabibi, a real estate developer, they worked toward creating a real estate lending marketplace that was efficient and effective. In September of 2013, Patch of Land raised $1.2 million through a Los Angeles-based private investment company.

If you do not agree with the Patch of Land review, please leave a comment below.