While we certainly can’t predict the future, it seems apparent that alternative lending is becoming a much more popular method of funding real estate development projects across the world. As peer to real estate lending continues to evolve, we know it’s important for us to plan ahead. Looking forward, we decided to share some of the goals we’ve set for ourselves to accomplish during the New Year.
Enhanced Automated Technology
The nature of technology is always calling for an upgrade. Therefore, a major objective of our debt-based crowdfunding company is to continue developing upgrade modifications to our real estate crowdfunding platform. For example, we know how critical credit and risk assessment of our borrowers is. Thus, we’re developing additional technology to refine underwriting techniques to do things such as: get cash flow information at point of application, pull additional data sets, comparables, and walkability scores. We’re working towards gathering information about individual construction budget items, so we can see how the rehabilitation project will add value to the property in that particular market. This type of information will help us gain a strong algorithmic understanding of our underlying asset. Not only will this work towards compressing the underwriting time for our borrowers, it will also increase investor confidence for every real estate investment opportunity hosted on Patch of Land’s crowdfunding platform.
Diversified Real Estate Rehab Loans
One of our goals is to be able to provide our customers with a range of financial products so we can become the best real estate investment option at any stage of the market. Continuously reconditioning our due diligence process will go a long way towards insuring our growth is strong enough to roll out the type of products we’re looking to expand into. Patch of Land is currently exploring a few different options, one of them being new construction loans. We believe these type of opportunities will become more appealing as the sq. ft. to build becomes significantly lower than the price to buy and rehab. We’re also evaluating whether to move into longer term buy and hold, and buy and lease investments. As the market moves into a contraction phase, there will be a lot of distressed property. These properties will be a very sound investment within 3 to 5 years opposed to the 12 month notes we currently offer.
Related Video: Delivering Ease, Efficiency, & Transparency through Patch of Land's Platform
As we grow alongside the real estate crowdfunding industry it seems like the possibilities are endless. However, we know it’s imperative to scale in a responsible manner. Therefore, we will make the necessary changes when the time is right. If you have any suggestions on how we can improve please leave a comment and let us know. We appreciate any and all feedback.
