Patch of Land (PoL) knows how important it is to have a reliable and efficient due diligence & underwriting process. Currently PoL implements traditional and non-traditional elements to our underwriting procedures. Some of the traditional methods include arms-length third party appraisals, commissioned by Patch of Land for a full walk-through and value analysis, pulling comparable data and metrics to evaluate the local market, the performance of that particular asset class in that market, and the risk profile of the borrower.
Related Article: Growing with Patch of Land: Part 2 - The Underwriting Process
PoL also uses non-traditional methods to enhance the accuracy of our underwriting methods from a logistics point of view. In fact, we've created a due diligence engine with the ability to pull data from multiple sources, including major credit reporting agencies. This various assortment of data is gathered and translated into proprietary information models, which is then used to do a multitude of things, such as assess risk, provide analysis summaries, pre-approve a wide variety of loan requests, and extend automatic terms to existing borrowers for new projects. Our expert underwriting staff is able to use this procured data, in conjunction with traditional underwriting methods, to create an internally-developed scoring system, allowing efficient decision-making on lending.
“Our goal is to solve the problem of inefficient, fragmented real estate private lending by using data driven processes to create transparency and to efficiently underwrite projects for borrowers.” - Brian Fritton (PoL Co-Founder & CTO)
Related Article: Patch of Land Shows Off Our Tech at FinovateFall 2014
Furthermore, PoL believes in being as transparent as possible. Therefore, we provide investors with all the information we have on our investments, that way they can perform their own due diligence on the properties and not have to rely solely on our analysis. We allow access to our underwriting criteria, supporting documentation, analysis of risks, as well as updates to each deal during the lifetime of the loan. By allowing investors to pull our data, they feel confident and believe they are always making a secure investment whenever they invest in a Patch of Land project. As we progress, we will continue to build upon our due diligence and underwriting technologies to better serve our borrowers and investors.