Patch of Land for Real Estate Investing
Real estate investing is a concept that's as old as the idea of property ownership itself. Land, like any other valuable resource, can be bought, refined, repackaged, marketed, and sold, or rented out for a profit. What has begun to change in the last 50 years are the tools and techniques that are now available for anyone interested in investing in real estate.
An Alternative to REITs
A mortgage, which was originally designed as a loan to help borrowers purchase a home, also allows investors to take complete control of a property by paying a fraction of the value of the property (sometimes as low as 5%) while making property improvements (rehabbing) - or waiting (buy and hold) to sell it at a higher value. On the other hand, real estate has also found its way into the stock market.
Real Estate Investment Trusts (REIT) allow investors to own shares of stock in a company whose primary business is purchasing and managing real estate. However, we don't recommend either of these options to investors seeking passive income from real estate, as flipping houses takes a lot of research, experience in specific locations, while REITs leave investors with little control over what they're actually investing in while charging high fees for low potential returns.
At Patch of Land, we offer an alternative that provides a passive real estate investment option: short term real estate loans to professional property developers. We pool our resources to do extensive research on cash-flowing real estate investments by experienced, local experts (developers) with properties that need financing. Then we prefund their loans so the developer can get started on their project right away. Furthermore, prefunding allows our accredited investors to begin earning interest on their investments almost immediately, instead of having to wait for the crowd to fully fund the offering first.
Once Patch of Land has made the loan to the developer, the company syndicates the loan on its platform with an investment minimum of $5,000. Accredited investors can then invest their own capital for up to 36 months (typically 12 months) to support particular development projects.
Become Part of a Winning Crowd
We offer crowdfunding for real estate investments and we've streamlined the process of investing in short-term loans for real estate development projects. You no longer need to have years of experience in the industry to gain insider info and to recognize industry trends.
Our team of real estate professionals has over 50 years of experience investing in real estate, and every project we prefund demonstrates our confidence in the success of that project. Below, you will find our portfolio of projects along with the amount of funding needed, annual yield, and expected duration among other important details so you can find the best one for you.
Learn more about how we operate by checking out our How it Works page, and get more information on real estate crowdfunding plus the latest trends within the industry by visiting our Patch of Land Resource Center.
