Patch of Land is a peer to peer lending portal developed for real estate debt crowdfunding. Our online real estate investing platform serves as an alternative lending source for developers seeking to borrow fast and reliable capital. The type of crowdlending services we provide are typically peer to peer rehab loans. However, loans are also available for fix & flip projects, rentals, refinance, bridge loans, and new ground up construction. We consider Patch of Land as more of a debt-based P2P real estate (P2PRE) platform since we are able to offer a multitude of real estate investment opportunities for our investors and borrowers. In Part 1 of this two-part series we will look at how to participate in real estate crowdfunding with Patch of Land from a borrowers perspective.
Participating in Real Estate Crowdfunding as a Borrower
The nature of the real estate industry tends to require an ample amount of funding and in a hurry. In many cases it's necessary to have the capital up front in order to secure a property before it's gone off the market. Besides the purchase costs, money is also essential for developers looking to rehabilitate a property.
Patch of Land is a national alternative real estate lender who makes it easy for real estate developers to borrow funds by giving them access to a large pool of capital stemming from the thousands of investors signed up to our real estate crowdfunding portal. The process is simple, and only requires these 6 easy steps to fund your project with Patch of Land:
1) Fill out our 5 minute loan application
Submitting an application is easy and painless. Not only that, but it takes no time at all. We'll ask you for some background information and details about your project and funding needs. With that information we will develop a scope of the overall project and can reach out to you for any further details.
2) Discuss the Opportunity
Patch of Land will contact you to discuss the details of your real estate development project. This is your opportunity to talk numbers, as well as express why you believe in this particular property so much. If we are the company for you, then we will proceed to the next steps.
3) Fill Out Loan Application Documents
This is where we can gather the necessary information to perform our due diligence. Our 'Makes Sense' underwriting approach takes into account many factors outside of what the FICO score tells us regarding a customer's credit profile. We encourage all professional developers with a solid track record to apply for funding. If the project makes sense, we want to hear about it.
4) Due Diligence Process
Once we've gathered your information, as well as the project scope and details, we can begin to perform our due diligence process. While we are not adverse to risk, we maintain a certain standard for our platform and will need to review how accurate the numbers are.
5) Get Prefunded and Go!
Patch of Land is committed to prefunding real estate development projects. We want to make sure there are no hold ups in the process, that way our borrowers can get the funding they need to get to work right away, instead of having to wait for the crowd to fully fund their projects ahead of time.
6) Keep us updated and make monthly interest payments
Now that you're projects up and running, you'll be making monthly interest payments and sending updates in the form of written descriptions and photos of the progress being made. This helps keep us and the people who invested in your project abreast of the developments happening along the way.
Now that you have a better understanding of the steps involved, we encourage real estate developers looking to borrow funds to fill out an application. Patch of Land is known for great customer service and will be in contact with you regarding your project ideas. If you have any suggestions on where we can improve, please leave your thoughts and comments below.
Patch of Land Reviews: Real Estate Crowdfunding with Michael Kevorkian (New Market Realty Inc.) - The Patch commented March 26, 2015
[…] MK: I got started in real estate in 2001 as a real estate agent. At the time I was managing a restaurant in Chicago and I had a friend who said I was good with people so I should get my real estate license and become an agent, so I did it. It took me a couple years before I discovered the importance of lead generation and the marketing aspect behind the business. However, after advertising to sellers through canceled and expired listings, an elderly lady asked me if I could just skip the listing process and outright buy her property. After going through with it, I shifted my focus and researched different niche markets within the real estate industry. From that point on, I transitioned into becoming a real estate investor. […]
How to Participate in Real Estate Crowdfunding with Patch of Land Part 2 - The Patch commented April 13, 2015
[…] How to Participate in Real Estate Crowdfunding with Patch of Land Part 1 we discussed what the process of working with Patch of Land is like from a borrower, or real estate […]