Patch of Land sees innovation as key to lasting success
On June 1, 2015, real estate crowdfunding site Patch of Land released its secured debt investment structure, a move its executive team felt helps the entire industry.
In an industry where proprietary information is often a company’s bread and butter, especially as competition grows, such a move was risky. Yet since Patch of Land’s move, other platforms have followed suit, a development which pleases CEO Jason Fritton.
“We are pleased that industry leaders within the real estate crowdfunding space have moved to follow our lead in offering a secured debt structure that better protects investors. It’s a considerable step forward for the industry now that top of the top real estate crowdfunding platforms are using Patch of Land’s pioneering secured debt investment structure.”
Patch of Land General Counsel Amy Wan said they have advised other platforms on how to create similar offerings, and suggests any platform wishing to stick around better join the club.
“The General Counsels of numerous other platforms have reached out to us to learn how to structure a secured fractionalized debt offering. It’s now inevitable that all major RECF platforms will adopt our best-in-class structure, otherwise they may be left in the dust for selling investors an inferior product.”
In a release, Patch of Land said its history of innovation also includes pre-funding and the identification of the single family residential debt niche. Next up is Phase 3 of its investor-side legal innovation project. Ms. Wan hopes to unveil it by next April.
“Technologists believe in continual reiteration of a product. I’ve applied that line of thinking to the Legal Department at Patch of Land. My department has a heavy emphasis on non-traditional creative lawyering.”