Patch of Land, an online marketplace lender for real estate topped $100 million in loans to real estate professionals who purchase, rehabilitate and refinance undervalued real estate.
Borrowers who do not qualify for long-term financing on properties they rehabilitate and hold as rentals may qualify for Patch of Land’s new mid-term offering which provides bridge financing. The company has earned more than $40 million in loan interest in the two week since being announced in an email campaign.
“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,” said Fritton. “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.”
The company has also returned over $25 million in principal and interest to its investors. Patch of Land continues to grow as it now offers its services in 36 states.
“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 to 36 month mid-term product, which fulfills a growing need for medium term lending options,” said Jason Fritton, Patch of Land CEO and co-founder.