Online real estate marketplace lender Patch of Land enjoyed a successful first quarter.
The platform has surpassed the $100 million mark in short-term loans for rehabilitation of residential and commercial properties. They have also returned more than 25 percent of that to investors in principal and interest.
Patch of Land is now available to investors in 36 states, including Hawaii.
CEO Jason Fritton says his company continues to grow by meeting clear needs in the industry.
“In 2013, we launched with the short-term, 12-month loan, which served to fill a huge gap left by banks and traditional lenders, and we’re now launching a 24-36 month ‘mid-term’ product, which fulfills a growing need for medium-term lending options.”
The latter is a bridge opportunity for those entering the rental markets by buying and renovating houses. Since being unveiled in an e-mail campaign in early March it generated more than $40 million in loan interest, Mr. Fritton said.
“This product enables Patch of Land to better serve existing and new borrowers who need flexible loan solutions for projects that require repositioning, stabilization, and tenant placement in anticipation of conventional, long-term financing. For investors, this new product provides a slightly longer hold period on projects that have tenants in place, cash-flow, and lower loan-to-value than a 12-month rehab loan.”