Online real estate marketplace lender Patch of Land has agreed to sell $250 million of loans to East Coast Credit Fund in what is the fund’s first marketplace lending transaction.
“We are thrilled to announce this important milestone for the impact it has in the online real estate financing space,” Patch of Land CEO Jason Fritton said. “Patch of Land will now be able to fill loans on a programmatic basis, creating a higher level of validation for the entire industry.”
Patch of Land Executive Vice President of Business Development Jillian Jaccard explained some of the factors behind the company’s success.
“Proprietary risk scoring and pricing models provide a reliable, consistent, homogenized product. This product appeals not only to institutional buyers, but also the company’s individual investors.”
Individual accredited investors will remain a key focus for Patch of Land, Mr. Fritton said.
“The crowd — our individual accredited investors who have thus far provided over 95 percent of our loan funding — remains a priority to the company. We will continue to deliver quality product for the portfolios of large institutional players and the thousands of accredited investors who invest in our loans every day.”
In its 30 months of operation, Patch of Land returned more than $20M of principal and interest payments to investors with no loss of principal and a 12 percent average blended rate of return.