Patch of Land
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!

J W

Jan 12, 2019

A PoL investor shince early 2016, I am increasing disappointed in this platform. 

Highlights (Lowlights):

1 - Poor communication

2 - Increasing poor deal quality..  Lending with "no income verification", ARV's north of 70% on all deals.

3 - Poor management of deals.  NO site visits, slow, no action on late/no payers.

 

Of primary concern is there complete lack of transparency and communication.  It takes multiple phone calls, emails and tickets to elicit any response.  And those responses are often boilerplate.  They have very little insight into any specific deal you want to talk about. I  have 11 deals, only 1 remains in default.  Regardless of how it turns out, this "passive" investment with PoL required a tremendous amount of work on my part.    

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.

hussein jaafar

Mar 01, 2017

pol was my first platform in crowdfunding , all was fine untel early 2016 i knew somthing was wrong when thier ceo steeped down i invested a total of 18 deals with them 3 are in forcloser and   1 has been given extension i onle have 5 deals left 3 in forclosure 1 extension and 1 paing on time i have not invested any more with them since the 3 in defualt , all 3 stopped paying same month they move real slow and really dont have answers

anna ca

Feb 24, 2017

POL was my first debt CF platform. I like that they prefund their deals, which means your money starts earning interests right away. I invested in only one deal to test the water and it finally got paid off in January. During this period, the loan was late for a good 1/3 of the time while POL communication was almost non-existent. I had to contact them to get any updates. After my feedback, they said they would provide monthly communications; however, it was not consistent.

Apparently POL had a huge layoff back in July 2016 (3 key executives: CFO, Head of Underwriting, Chief Legal Counsel and some junior staff). This doesn't give me much confidence.

James Bobbett

Feb 19, 2017

I have made 4 investments on PoL. 3 have completed with no issues and IRRs actually a fraction of a % higher than advertised, vs say Realty Shares where my experience has been debt IRRs fractionally below advertised even when things work out properly.

The fourth sponsor seems to be struggling, with several late payments and PoL preparing to start foreclosure process. We'll see how it goes. 

I have been pretty happy with them and may use them again in the future. My investments always got updates.

George Dai

Jan 31, 2017

PatchOfLand used to be my only debt investment platform. Unfortunately, two out of my six investments went into default. I stopped investing with them after I had my first default.

James Mc Ree

Jan 30, 2017

I have been a PoL customer for about 9 months in 4 investments.  All have paid on time with no issues.

I had been receiving regular monthly progress updates until Aug 2015.  That stopped completely and became no communications whatsoever.  I provided PoL some feedback that some updates would be appreciated, if only to know the project is progressing as expected.  The PoL response was they will only provide updates if there is an adverse development, but then I did receive a couple of updates.

No real complaints, but I would feel more comfortable knowing more about the state of my investments beyond "Current."

Alex Trepetin

Jan 23, 2017

The ratings I posted are based on deals during 2014-2015, and I cannot speak to the quality of deals and platform due diligence after Dec 2015. Communication is still terrible, possibly the worse of any platform. 

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Patch of Land Patch of Land
Rated 2.2/5 based on 22 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.