3 Real Estate Deals; 3 Repayments to Investors; This Operator Is a Real Estate Crowdfunding Pro!
Meet Xavier E. Ordonez. A full time Real Estate Broker and investor for over 14 years. He is an active RE/MAX Broker and a full time investor in New Jersey and one of the most active developers on Patch of Land. His impressive real estate deals on our crowdfunding platform were phenomenal for investors, but his story is even more inspiring. To see his previous deals, visit the profile page for Xavier E. Ordonez (you will have to register to see the details).
We had the opportunity to speak with Xavier and ask him about his background. Originally from Ecuador, Xavier came to the United States in 1988 for his high school and college education. He received his B.S. in Business Management in 1999 from Kean University (Union, NJ). After college, he began his career in real estate and has been hooked ever since!
When asked how he began the transition from a real estate agent / broker to an investor and developer, Xavier shared his excitement for wholesale deals which eventually led to his passion for buy, fix, and flips. As a broker, he understands the values of properties and was able to use those skills to gradually increase his comfort level to the point where he is now the one developing properties. He also has experience building homes from the ground up and he uses these skills for all his multiple investments through Blue City Homes, where he is the CEO/Acquisition Manager.
We had a chance to sit down with Xavier and ask him about his experience using the Patch of land platform. The following was the results of that conversation.
Patch of Land: How did you hear about real estate crowdfunding through Patch of Land?
Xavier: My attorney referred me to Patch of Land. He mentioned the great service, flexible terms, and the ability to connect directly with senior management. Feeling like I am talking with friends is important to me when doing business with someone, and this was a key factor in me selecting Patch.
Patch of Land: If there was one thing that stuck out about using the Patch of Land platform, what would that be?
Xavier: The team at Patch of Land always finds a way to get a deal done. Not only have the terms been fair on my end as the developer, but investors are also getting great investment options that they may never had access to before.
Patch of Land: Did you feel supported as you were going through your first crowdfunding campaign on Patch of Land?
Xavier: I absolutely felt supported! There has never been a hard money lender that I have dealt with that I could text the co-founders of to ask a question. There were times when I needed a question answered immediately and Carlo Tabibi and Jason Fritton would get back to me with lightning speed.
Patch of Land: Can you tell us more about the specifics of one of your deals that you got funded?
Xavier: Sure! Below are some of the details for the Residential Redevelopment project at Bridgewater, NJ.
Structure Overview
- 12% APR with expected 12 month hold term
- Loan secured by first position on title
- Two personal guarantees on the loan
- Updated 3 Bed / 2 Bath at a 33% discount from $300,000 appraised value
- 1,742 sqft on a 10,018 sqft Lot
Patch of Land was introduced to me at the right time. This deal was a very light cosmetic rehabilitation project but before patch of land, I was going to pass on this one due to lack of financing options. When my attorney mentioned that Patch of Land pre-funds the deals for a quick closing, I knew that I had a chance at this property. Luckily, the team at Patch of Land saw the potential and we were able to close within weeks. For Patch of Land, this presented a great opportunity with minimal risk for investors, especially because that deal represented a 66% Loan to Appraised Value and was secured by the first position of title and 2 personal guarantees on the loan.
Patch of Land: And how did your deal look to potential investors? What was their projected returns?
Financial Overview
| Investment Needed | Minimum Investment | Loan Term | Expected Annual Yield |
| $200,000 | $5,000 | 6- 12 months | 12% |
Xavier: For investors, the return presented a much better opportunity than current bank interest rates could ever offer them. For a minimum investment of $5,000, investors had an expected annual yield of 12% and were expected to receive their investment back within 6 to 12 months. The total amount that I needed in order to purchase the property and perform the redevelopment was $200,000. Investors received their repayment within 90 days when we sold it.
Patch of Land: Sounds like a win / win / win for everyone involved. Do you plan on using Patch of Land again for future investment opportunities?
Xavier: Absolutely and I already have! After this deal was rehabbed, sold, and paid back to investors within 90 days, we went on to close and repay investors on an additional two deals, one in Elizabeth, NJ and another on a different street in Elizabeth, NJ. The deals went smoothly and I now have my sights on future real estate offerings that I can bring to the Patch of Land platform. Now that I can trust a debt based real estate crowdfunding platform that acts as a more efficient and transparent hard money source for deals, I am confident that I can take my business to the next level.
Patch of Land: It was a pleasure to work with you Xavier, and we look forward to being valued partners for many years to come!
About Xavier Ordonez
Xavier E. Ordonez is a Real Estate Broker and investor for over 14 years. He is an active RE/MAX Broker and a full time investor in New Jersey. He received his B.S. in Business Management in 1999 from Kean University (Union, NJ). He obtained his Tittle Officer License in 2011 and also always updating his real estate knowledge. Currently he is rehabbing and flipping properties, which is his passion. After his fourteen-year career as a real estate broker and investor has earned multiple awards and recognitions and most importantly has developed a vast clientele and a good reputation in the community. Xavier is originally from Ecuador, came to United Estates at 14 years old with his family, looking for a better future. He is an active member of the Ecuadorian Lions Club and the Hispanic Chamber of Commerce of New Jersey and other networking organizations. He currently resides in Union, New Jersey with his wife Andrea, his daughter Valentina, his baby boy Nicolas and his dog Louie.
