Patch of Land

Patch of Land is a peer-to-peer real estate crowdfunding online marketplace and hard money loan provider that connects real estate developers needing financing to lenders and real estate investors. Patch of Land focuses on 6–24 months real-estate first lien mortgage loans with borrower guarantees.

Patch of Land
Online real estate crowdfunding
Founded2012 (2012)
FounderJason Fritton
Brian Fritton
Carlo Tabibi
Headquarters
Los Angeles, California
,
United States
Websitewww.patchofland.com

The company has originated more than $725 million real estate loans secured by $1.16 billion of real estate and has returned $185 million of investor capital.[1]

Patch of Land was one of the first real estate crowdfunding platforms.[2] It was the first real estate crowdfunding platform to focus exclusively on real-estate loans[3] as opposed to equity, or both debt and equity simultaneously.[3] Patch of Land was the first to pre-fund the loans it offered, providing immediate accrual of interest and giving borrowers access to all borrowed funds immediately without needing to wait for investors to fund.[4][5][3] Patch of Land was also one of the first to co-invest in its property loans alongside investors on its platform.[6]

History

Patch of Land was established by Jason Fritton, Brian Fritton and Carlo Tabibi in 2012 in Los Angeles, California shortly after congressional passage of the United States Jumpstart Our Business Startups Act, making it one of the earliest providers of online Real-Estate Crowdfunding.[2] Jason Fritton was among those who lobbied the United States Congress for the inclusion of real-estate crowdfunding in the JOBS Act.[7]

The company hired AdaPia d'Ericco as Chief Marketing Officer[8] and Amy Wan as its General Legal Counsel.[9]

In August 2015, Patch of Land announced its Indentured Trustee Investment Model, offering a bankruptcy remote investment structure and stronger consumer protections for its investors.[10] Patch of Land opened its Indentured Trustee Model documentation to the public in the hopes that other firms would follow suit, as many did.[11][12][13]

In May 2015, Patch of Land completed the largest ever real-estate investment loan offering of $1,900,000 to be fully crowdfunded (via regulation 506c) as of that date.[14]

In 2015, CNBC created its Crowdfunding Index, powered by Crowdnetic, and included Patch of Land in both the real estate sub-sector as well as the overarching crowdfinancing sector[15]

In April 2016, the company hired Paul Deitch from Oaktree Capital Management as CEO.[16] He quit in November 2017 and was replaced by co-founder and chairman Jason Fritton.[17]

In 2016, Entrepreneur named Patch of Land to its list of 100 Brilliant Companies.[18]

Funding and investment

In October 2014, Patch of Land became the first real estate crowdfunding firm to crowdfund itself via the SeedInvest equity fund-raising platform.[19][3]

In April 2015, the company raised $23.6 million in a Series A round led by SF Capital Group as well as an investment from Ron Suber, president of Prosper Marketplace.[20][21]

In February 2016, the company announced that it had secured $250 million in investments from a large east coast credit fund via a forward flow arrangement.[22][23]

gollark: Remove your nails.
gollark: This isn't better.
gollark: So people will have to plug numbers into the accursedly long approximation™ instead?
gollark: I think it's smarter to assume/have basically-reliable-when-running individual nodes and build redundancy in at a higher level.
gollark: Probably nobody wants to have to deal with primitives which might randomly not work fully or reason about all the underlying weirdness continuously, and with 2/3 of the nodes not doing anything you'll be wasting a lot of space.

See also

References
  1. "Patch of Land P2RE Statistics and Trends". Patch of Land.
  2. "Patch of Land Raises $23.6 Million in Financing, Led by SF Capital Group and Ron Suber" (Press release). Business Wire. April 8, 2015.
  3. Alois, JD (January 12, 2015). "Real Estate Crowdfunding Trailblazer, Patch of Land, Reflects on Many "Firsts"". Crowdfund Insider.
  4. "How Does Patch of Land Work?". Crowdfunding Success Tips. November 23, 2015.
  5. Stoller, Bill (July 13, 2015). "Exclusive: Patch Of Land Fintech Sprouts Growth Through Real Estate Crowdfunding". Benzinga.
  6. Alois, JD (February 17, 2016). "A Quarter Billion Institutional Credit Will Not Deter Patch of Land's Commitment to the Crowd". Crowdfund Insider.
  7. Banas, Daniel (19 May 2015). "Crowdfunding Comes to Real Estate: Interview with Patch of Land CEO Jason Fritton". Equities.com.
  8. "Peer-to-Peer Real Estate Crowdfunding Explained with AdaPia D'Errico from Patch of Land". Real Estate Radio Show. 2015-04-20. Retrieved 2017-09-08.
  9. "The Real Estate Crowdfunding Review". The Real Estate Crowdfunding Review. Retrieved 2017-09-08.
  10. "Patch of Land Announces All Existing and Future Loans Secured by Underlying Collateral as Part of New Loan Structure Offering" (Press release). pol.newswire.com. August 19, 2015.
  11. "New Offering Structure for Debt Investments - RealtyShares Blog". blog.realtyshares.com. September 2015.
  12. Zeoli, Anthony (June 11, 2015). "Patch Of Land Now Offers a Truly "Secured" Investment Structure". Crowdfund Insider.
  13. "Adding Real Estate Crowdfunding to Your Investment Portfolio". Real Estate Investors Blog - Sharestates, LLC. August 1, 2016.
  14. Hurst, Samantha (May 28, 2015). "Patch of Land Makes History By Closing Largest Residential 506c Crowdfunded Loan to Date". Crowdfund Insider.
  15. "The CNBC Crowdfinance Real Estate Average". CNBC. February 4, 2015.
  16. Alois, JD (April 25, 2016). "Change at the Top: Paul Deitch of Oaktree Capital Steps in as CEO of Patch of Land". Crowdfund Insider.
  17. Alois, JD (November 1, 2017). "Paul Deitch Departs CEO Position at Patch of Land. Co-Founder Jason Fritton Steps Back into Leadership Role". Crowdfund Insider.
  18. Shoot, Brittany (May 26, 2015). "Let This Company Make Your Concept a Creation". Entrepreneur.
  19. Hobey, Erin (October 16, 2014). "Patch of Land Announces Public Fundraising on SeedInvest: CEOs Jason Fritton and Ryan Feit Comment". Crowdfund Insider.
  20. Putzier, Konrad (April 8, 2015). "Crowdfunding startup Patch of Land raises $23.6M in Series A". The Real Deal.
  21. "Patch of Land Raises $23.6 Million in Financing, Led by SF Capital Group and Ron Suber" (Press release). Business Wire. April 8, 2015.
  22. "Patch of Land Secures $250 Million from an East Coast Credit Fund". Payment Week. February 19, 2016.
  23. Penn, David (February 12, 2016). "East Coast Credit Fund Puts $250 Million to Work on Patch of Land Platform". Finovate.
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