LOS ANGELES, March 24, 2016 /PRNewswire/ -- Patch of Land (POL), a leading online marketplace lender for real estate, announced today that it has originated over $100 million in short-term loans for real estate professionals who purchase, rehabilitate and refinance undervalued residential and commercial properties. This notable milestone comes with another important statistic: the company has returned over $25 million in principal and interest to its investors, representing a quarter of the volume of originated loans. Patch of Land continues to expand its national footprint, providing its marketplace of individual accredited, and institutional investors with short-term real estate debt opportunities across 36 states, now including Hawaii.
"In 2013, we launched with the short-term, 12-month loan, which served to fill a huge gap left by banks and traditional lenders," said Jason Fritton, CEO and co-founder at Patch of Land, "and we're now launching a 24-36 month 'mid-term' product, which fulfills a growing need for medium term lending options."
Patch of Land's new mid-term offering provides bridge financing to borrowers who may not immediately qualify for long-term financing on properties that they rehabilitate and then hold as rentals. Borrower demand for the product has already yielded over $40 million in loan interest in less than two weeks since being announced in a beta email campaign. Fritton continues, "this product enables Patch of Land to better serve existing and new borrowers who need flexible loan solutions for projects that require repositioning, stabilization, and tenant placement in anticipation of conventional, long-term financing. For investors, this new product provides a slightly longer hold period on projects that have tenants in place, cash-flow, and lower loan-to-value than a 12-month rehab loan."
The company continues to be a pioneer in the real estate marketplace lending space, being the first to focus exclusively on real estate debt investments, the first to offer prefunded loans -- dramatically shortening the time developers have to wait to get funded while minimizing investors' cash drag -- and the first to offer a note structure that provides multiple investor security benefits. Since its inception in October 2013, the company has funded more than 220 projects and experienced 515% year-over-year origination growth from 2014 to 2015.
About Patch of Land:
Patch of Land (POL) is a leading real estate marketplace lender that has automation and data driven underwriting to make smarter and faster lending decisions. Professional real estate borrowers can expect a complete loan package 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 please visit PatchofLand.com
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SOURCE Patch of Land