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Crowdfunding Real Estate With Patch of Land


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Patch of Land is a peer to peer real estate crowdfinancing platform, offering accredited investors the opportunity to invest in high yield, asset-backed real estate debt deals with low minimum investments. Properties are secured by title and developer guarantee with LTV values that protect investors from unnecessary risk.

Investors can diversify their portfolios by accessing high yielding, passive income streams through real estate deals without the hassle of property ownership or management. Patch of Land will handle the work, liability, day to day management and licensing while investors watch their portfolios grow.

Patch of Land is unique in the real estate crowdfunding space because we co-invest, putting our own money into every deal. We work with established, experienced developers with a track record of successful property developments and we strive to provide investors with best-in-class customer service.

Detailed information on every property is available to allow for a thorough evaluation and efficient due diligence process. Investors have ongoing visibility into each project as it develops, as well as detailed analysis of investment returns on a monthly basis.

Published in: Real Estate
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Crowdfunding Real Estate With Patch of Land

  1. 1. The Internet Transforms Industries 2 ©2014 Patch of Land. Proprietary & Confidential. Accommodations Communications Payments Consumer Financing Now Let’s Transform Real Estate Lending Taxi Service
  2. 2. Crowdfunding Is… •  An approach to raising capital for new projects and businesses by soliciting contributions, online, from a large number of unrelated, individual stakeholders •  Made possible through SEC regulations (Reg D, 506c) and the JOBS Act •  CrowdInvesting or CrowdFinancing •  Equity (ownership) or Debt (peer-to-peer lending) 3 ©2015 Patch of Land. Proprietary & Confidential.
  3. 3. Equity Vs. Debt Crowdfunding Equity CrowdInvesting •  Equity ownership •  Long Term •  Unknown Return •  Investors participate in growth upside •  Start-Up, Venture Capital or Angel Investments •  SeedInvest, Equities.Com, CircleUp, FundersClub, Angelist Peer-to-Peer Lending •  Loans (debt investing) •  Short Term •  Fixed Coupon •  Investors receive monthly interest payments •  No equity ownership or upside •  Prosper, Lending Club, SoFi, Ondeck, Patch of Land •  Already multi-billion dollar industry 4 ©2015 Patch of Land. Proprietary & Confidential.
  4. 4. Why is Crowdfunding a Game Changer for Real Estate Financing? ©2014 Patch of Land. Proprietary & Confidential. 5
  5. 5. The Problem: Ease of Access to Capital Real Estate   Investor   •  Has capital to invest •  Desires a high ROR–ROI percentage •  Poor portfolio performance – stocks & bonds, CD’s, mutual funds, etc. •  Desires real estate as a high performing investment Borrower   •  Has little or no access to capital, especially not consistently •  Doesn’t have time or connections to raise money •  Banks will not lend •  Private money rates are too high 14 ? ? $ ©2015 Patch of Land. Proprietary & Confidential.
  6. 6. The Solution: Connecting Capital Online Investors   Borrower   14 ©2015 Patch of Land. Proprietary & Confidential. $ Real Estate Investments   $
  7. 7. Crowdfunding Reach: Amplify & Expand 8 Crowdfunding Brokers & Network Sponsor ©2015 Patch of Land. Proprietary & Confidential.
  8. 8. Who Are the Investors? 9 Accredited Investors - 8 million US households & only 1% penetration for private investing - High Net Worth & Ultra High Net Worth - Little to no access to private real estate deals - Seeking higher yields and capital preservation Financial Professionals - Fund Managers & Family Offices - Investment advisors & wealth managers - Hedge Funds, Private Equity, Capital Companies Accredited Investors Financial Professionals ©2015 Patch of Land. Proprietary & Confidential.
  9. 9. Who Are the Borrowers? 10 Professional Real Estate Investors - Long track record and experienced in rehab - Professionals who operate a company (LLC) - Local experts in their community/geographic area - RE Investors, builders, developers, contractors, etc. - Rehabilitating, rebuilding and improving properties - Residential, Multi-family, Commercial $ ©2015 Patch of Land. Proprietary & Confidential.
  10. 10. 11 I’m a Borrower: How Do I Work with a Crowdfunding Platform? •  What are you looking for? Partners vs. Lenders •  Types of financing available: Debt vs. Equity •  Choose Wisely: Know Your Portal •  Documentation & Prep: Full docs •  Due Diligence: More is better – be ready •  Public Profile: Wisdom of the crowd ©2015 Patch of Land. Proprietary & Confidential.
  11. 11. 12 I’m An Investor: How Do I Choose a Crowdfunding Platform? •  What are you looking for? Equity vs. debt •  What are you looking for? Long vs. short term •  Diversify: Build your own portfolio •  Documentation: Docs & info are available •  Due Diligence: Call, write, speak, ask •  Track Record: Transparency, volume, success ©2015 Patch of Land. Proprietary & Confidential.
  12. 12. How it Works: The Patch of Land Platform 13 SOURCING FUNDING SERVICING Servicing: •  Account management •  Communication Portal •  Distribution Management of Funds •  Legal and Tax Documents •  Regulatory Compliance •  Investor Management Funding: •  Prefund project •  Present project online •  Manage campaign •  Inform investors •  Fully fund project Sourcing •  Signup developer account •  Collect developer information •  Collect project information •  Conduct due diligence •  Approve project and funding request ©2015 Patch of Land. Proprietary & Confidential.
  13. 13. How it Works: The Patch of Land Process 14 Patch of Land Platform 1.  Pre-Screen 2.  Curate 3.  Underwrite 4.  Prefund 5.  Launch 6.  Investors Invest 7.  Service Loan 8.  Payoff 9.  Repeat Process Projects & Investors ©2015 Patch of Land. Proprietary & Confidential.
  14. 14. The Win-Win-Win-Win Partnership 15 Borrower: •  Quicker access to capital through prefunding •  Fair rates based on risk •  Consistent, reliable access to capital •  No investor management •  No time wasted raising funds •  Branding & Networking Patch of Land: •  Origination fees •  Repeat borrowers •  Repeat investors •  Low overhead costs and increased efficiencies •  Scale & volume Investor: •  High returns on real estate •  Diversification •  Access to deal flow •  100% transparent •  Due diligence at fingertips •  Monthly distributions •  Simple user interface and e-sign documentation Neighborhood: •  Property improvement •  Better housing •  Rising property values •  Economic development •  Improved lifestyle •  Attracts people •  Rebuilding America ©2015 Patch of Land. Proprietary & Confidential.