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Learn more about what we do in our FAQ.

Frequently Asked Questions

What does it cost to list a loan on your platform?

Nothing! We work with real estate developers and hard money lenders who want to get more deals funded quickly. The borrower only pays for an appraisal, closing costs, origination points, and monthly interest. We don’t charge hidden fees, junk fees or transactions fees either.

What criteria is Patch of Land looking for when posting loans on their platform?

Our projects are evaluated on a case-by-case basis and in addition to the criteria below, Patch of Land’s Executives, and friends and family regularly invest personally in the projects. Accordingly, we fund and list only the most promising projects after performing full due diligence and in partnership with 3rd parties.

Our current guidelines for a debt purchase or refinance investments are:

  • Minimum loan amount of $100,000
  • LTV (Loan to Value) less than 80%
  • Minimum down payment of 20%
  • ARV (After Renovated Value) less than 65%
  • Loan duration between 1-12 months with 6 month extensions available
  • We will finance 100% of construction costs
  • No Pre-Payment Penalties

We also ask for personal guarantees. Some of the guidelines listed above are negotiable, depending upon the strength of the project. If a property can be purchased significantly below its market value or if the Developer offers additional security components, we may consider a higher LTV or ARV.

Does Patch of Land accept projects in all states? Outside the United States?

Currently, Patch of Land accepts projects from every state except: Arizona, Nevada, and South Dakota. However, we are actively pursuing ways to accept projects from these states. We do not accept projects from outside of the United States at this time.

For the most current listing please view our Lending Parameters

How do you keep my personal information secure?

Patch of Land ensures that all sensitive data is encrypted with bank-level encryption through Industry-leading security provider, Symantec (formally VeriSign), the makers of Norton Antivirus and other Enterprise security products. We pay for not only a 256-bit SSL encryption certificate but also a daily malware scan. Patch of Land is dedicated to ensuring that your personal information stays secure. For more information, please read our privacy policy.

What type of information do I need to provide to Patch of Land?

The List of items needed to underwrite a loan includes: 

Credit Report (we look at scores, but we’re more interested in what the report says.)
Proof of Funds (down payment, closing costs, carrying costs, etc.)
Inspection Report of the property, if available
List of Comparable Sales (CMA, BPO, MLS listings, if available)
Purchase Contract, if a purchase
Construction Budget Estimate & Timeframe
Contractor Information (License #, Insurance, Bond)
Payoff Statement, if a refinance
Borrower’s Attorney or Escrow Company information
Articles of Incorporation
Developer Biography (to be posted on the website)
Property Description/Plans (to be posted on the website)
General Liability Insurance ($2 million aggregate)
Builder’s Risk Policy
Any other Insurance applicable (Flood, Wind, etc.)

We also complete an independent background check.

I just submitted my application. What is my next step?

Once the initial submission from our website is reviewed, if we feel it is a good fit, one of our underwriters will contact you to discuss the project in more detail and explain the next steps. Due to the volume of submissions we have been receiving, we are currently developing an automated vetting system that ranks each submission based on the information the developer submits to reduce review times. The more information you give us when submitting your project, the better your chances are of being contacting by Patch of Land.

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

How long will the loan process typically be?

Once we receive all of the items in the application, we call the developer to discuss details and answer any questions. If everything looks good, the loan is presented to our Executive team to determine the interest rate, origination points, and structure of the loan. We will directly contact the developer to present the Engagement Contract and, once the developer agrees to the terms of the loan, we order an appraisal, title, and closing documents. This process usually takes about 24 hours.

The appraisal will usually take 4-5 days for completion and submission to an Underwriter for review. Once the Underwriter is satisfied with the due diligence process and all necessary documents are received, the loan is scheduled to close. In total, a loan can close as quickly as 5 days, but averages 10 business days depending on how quickly a developer submits all the requested documents. 

Am I able to withdraw my project once it is launched onto the platform?

No. When a project is published on our platform, all the necessary contracts have been signed and the project cannot be withdrawn. 

Why should I choose to use Patch of Land over a traditional way of funding my projects?

At Patch of Land, we are able to complete funding in as little as 5 days, with short term rates as low as 9.99% and two origination points. As an online crowdfunding service with thousands of accredited investors, we have the ability to form creative capital structures that will work for your specific plans, covering both hard and soft costs. We are flexible in trying to find the best loan product that fits a developer’s needs. Also, we take great care and pride in promoting the developer on our website, to our investors and giving the developer vast exposure to a large group of people who believe in the project, and want to see it succeed. This is a new way of receiving funding, powered by e-commerce and technology in our connected and social world. Developers receive the benefits of all these forces combined, plus great customer service, and a team that is dedicated to ensuring the developer’s ultimate success.

Read more: Crowdfunding and Peer to Peer Lending, Top 3 Benefits of Using Patch of Land 

I’m a first-time flipper, where do I sign up?

Sorry, but we currently only work with experienced developers who have proven experience. Many of our developers have been flipping properties for years and bring with them a variety of backgrounds working in the construction trades, real estate sales and rentals, property management and other related industries giving them unique knowledge and expertise in a given area.

We suggest that you find an experienced local Mentor with whom you can partner and learn from. Join a local REIA group, www.nationalreia.com, to learn more about real estate investing in your local area. 

I have some raw land I want to build on. Can you help me?

Unfortunately, we do not currently lend on raw land.

Do you have Pre-Payment Penalties?

No. We do not have Pre-Payment Penalties on our loans.

What types of properties do you lend on?

Currently, we lend on residential 1-4 family properties, small mixed use, and small commercial. As we grow in the future, we will be looking at subdivisions and other larger projects.

For the most current listing please view our Lending Parameters

Can I live in the house I’m going to renovate?

No. Patch of Land loans are strictly non-owner occupied, Commercial Loans for the purpose of business and investment.

I like crowdfunding, but what if the crowd doesn’t fully fund my project?

At Patch of Land, we pre-fund all of our deals at closing and then present the deal to our investors on the website.  Because we pre-fund your deal at closing, you are able to buy the property and immediately begin any renovations needed. There is no “waiting” period requirement that the crowd fund the loan first before you are able to schedule a closing. In this way, we are able to guarantee that loans will close quickly and on-schedule.

Read more: Benefits of Prefunding, Patch of Land Puts Its Own Skin in the Game

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