Our Lending Parameters

At Patch of Land, we look at every project proposal individually—each deal and borrower is unique. Whether you’re needing funds for a fix & flip, rental, or commercial project, we take the time to develop strong relationships with our customers to understand their particular needs and project goals. The parameters below are a general guideline to help you get started.

Funding for Fix & Flips, Rental Properties, & Commercial Projects

At Patch of Land, we can fund your first loan in as little as 7 days. Whether you’re looking for capital for a fix & flip, rental, or commercial property, we have a program to meet your needs. Once you’ve funded your first loan, faster approval times and more financing options can make the process even easier for future loans.

Find the Program that's right for your project: Fix & Flip Loan Program Rental Loan Program Commercial Loan Program
Loans for rehab properties
Up to 12 month loan terms
Up to 85% LTV and 70% ARV 		Loans for rental properties
24 month loan terms
Rent coverage ratio of 1.25x 		Loans for commercial properties
Up to 12 month loan terms
Available in 44 states
Fix & Flip Loan Program Rental Loan Program Commercial Loan Program
Project Type Single Family Residential
2-4 Unit Residences
Condominiums
Townhomes
Multi-Family Apartments
Mixed-Use Buildings
Small Commercial 		Single Family Residential
2-4 Unit Residences
Condominiums
Townhomes
Multi-Family Apartments
Mixed-Use Buildings
(min. 50% residential) 		Multi-Family
Apartments
Mixed-Use
Single-Use
Office
Light Industrial/Warehouse
Retail
Loan Amount $50,000 to $3,000,000 $100,000 to $3,000,000 $250,000 to $3,000,000
Loan to Value (LTV) Up to 85% Up to 75% Up to 70%
Rent Coverage Ratio Not Applicable 1.25x 1.1x
Loan Term 12 Months
(No Prepayment Penalty)		 24 Months
(With 1-Year Extension Option)		 12 Months
Interest Rate From 8% From 8% From 10%
Proceed Usage Purchase, Refinance, Renovation, Bridge, Cashout Purchase, Refinance, Bridge, Cashout Purchase, Refinance, Renovation, Bridge
How to Submit

How to Submit

Submitting is easy!

Go to www.patchofland.com/developer-information/ and fill out a loan application.

Submitting an application online takes as little as five minutes. After your application is submitted, a loan officer will promptly call to discuss your project in more detail and review next steps.

For questions, please email [email protected] or call 1-888-959-1465.

Submissions

Required Documentation

Typically, loans are initially submitted through our website and customers provide information regarding the project and their background.

Customers are emailed a copy of their application and a list of documents needed to complete the application process.

The list includes:

  • Credit Report (we look at all scores because we take a holistic approach)
  • Proof of Funds (for down payment, closing cost, et cetera)
  • Inspection Report of the property, if available
  • List of Comparable sales (CMA, BPO, MLS listings)
  • Purchase Contract, if a purchase
  • Property Management Questionnaire (rental only)
    Click to Download
  • Construction Estimate & Timeframe
  • Contractor Information
  • Payoff Statement, if a Refinance
  • Borrower’s Attorney information
  • Articles of Incorporation, if applicable Developer Biography (to be posted on the website)
  • Property Description/Plans (to be posted on the website)

We also complete an independent background check of the borrower and the corporation .

Once we review all the items, the developer is called to discuss details and answer any questions. If everything looks good, the loan is presented to our Executive team to determine the Interest Rate, Points & Structure of the loan.

It is important to note, that many factors go into the underwriting of a loan. We typically like the developer to put money into the deal (the more, the better). How “seasoned” is the developer? Are they buying under market value? What is the LTV? More importantly, what will the ARV (After Renovated Value) be? We typically look for an ARV to be around 60% of the loan. Is it in an appreciating market?

We then call the developer to present the Letter of Engagement and answer any questions they may have. Once the developer agrees to the Terms, an appraisal and legal work are ordered.

All of this usually takes about 24 hours at this point. Then the appraisal is ordered.

The appraisal will usually take 4-5 days to be completed and returned to the Underwriter for review. This is a crucial part of the underwriting process because we always use a licensed independent third appraiser to evaluate the property and give us two values: the “AS IS” value and the “SUBJECT TO” value. This can make or break a deal or at the very least, renegotiate the loan size. The appraiser is our eyes and ears at the property and helps ensure our due diligence to protect our investors’ capital.

Once everything is signed off by the Underwriter, it is scheduled to close.

In total, a loan can close as quickly as 5 days but on average it’s about 10 business days.

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Legal

15000 Ventura Blvd, Suite 300, Sherman Oaks, CA 91403 © 2019 Patch of Land, Inc. All Rights Reserved.

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Interest reserves are allocated prior to day-one disbursement to the Borrower and may be depleted prior to the loan maturity date.

Past performance is not indicative of future performance. Any financial projections or returns shown on the site are examples only and Investors should conduct their own due diligence and not rely on the financial assumptions or estimates that are displayed here.

Fluctuations in the value of the assets that are the subject of any investment are to be expected. Additional risks exist due to a variety of factors, including, but not limited to, leverage, property operations, business risks, management and environmental liabilities. There is a potential for loss of part or ALL of the investment capital, and each investor should understand that all capital invested may be lost. Investors should only consider these investments if they have no need for liquidity and can bear the risk of losing their entire investment.

This website is only suitable, intended and available for accredited investors who are members of Patch of Land and familiar with, and willing to, accept the risks associated with private investments. Patch of Land does not endorse any of the opportunities that appear on this website, nor does it make any recommendations regarding the appropriateness of particular opportunities for any Investor. Each investor must review and evaluate the investments in the investor’s own discretion and determine the suitability of making the particular investment.

Use of this website does not constitute an offer by Patch of Land, Inc. to sell, solicit or make an offer to buy any investment interest or securities. Patch of Land does not give or offer any business advice, investment advice, tax or legal advice to anyone using this website. The services provided by Patch of Land defined in the Terms of Use. All prospective investors must certify that they are accredited investors, suitable for this type of illiquid investment, and must acknowledge that they have received and read all investment terms and conditions.

Neither the Securities and Exchange Commission nor any federal or state securities commission or any other regulatory authority has recommended or approved of the investment or the accuracy or inaccuracy of any of the information or materials provided by or through the website. Direct and indirect purchase of real estate property involves significant risks, including, but not limited to risk related to sale of land, market and industry risks and risks specific to a given property. Investments are not bank deposits, are not insured by the FDIC or by any other Federal Government Agency, are not guaranteed by Patch of Land, Inc., and may lose value.

Patchofland.com is a website operated by Patch of Land, Inc. By accessing this site and any pages thereof, you agree to be bound by our Terms of Use and Privacy Policy. Patchofland.com is intended only for accredited investors (for persons residing in the U.S.), and for persons residing abroad in jurisdictions where securities registration exemptions apply.

Patch of Land, Inc. does not make investment recommendations, and no communication through this website or in any other medium should be construed as such.  Investment opportunities posted on this website are “private placements” of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Patch of Land, and MAY lose value.  Investors must be able to afford the loss of their entire investment.

Patch of Land Lending, LLC is a wholly-owned subsidiary of Patch of Land, Inc. that serves as the originating entity for all loans and operates in California under California Finance Lenders license #60DBO 45420, Oregon Mortgage Lenders license #5384, and NMLS #1286539.

Any financial projections or returns shown on the website are illustrative examples only, and there can be no assurance that any valuations provided are accurate or in agreement with market or industry valuations.  Any investment information contained herein has been secured from sources Patch of Land believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.   Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents that contain important information about risks, fees and expenses. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunities.