Patch of Land specializes in pre-vetted residential properties in need of rehab, though it also offers some commercial properties and small apartment buildings. It only invests in properties that meet its underwriting guidelines and show strong potential for return. The residential investments are for loans to fix and flip houses, while the commercial investments are mainly equity purchases to buy and hold.
Its online platform allows you to digitally sign the proper contracts and agreements so you can start investing immediately. It also gives timely updates on the project by working closely with the developer, including email or text updates, videos, plans and other assets.
Patch of Land claims to offer high interest rates because borrowers dealing with short term loans are typically paying even higher interest. At either the loan’s maturity date or full repayment from the borrower, you will receive a balloon payment of the remaining principal and interest.
Patch of Land has a diverse mix of properties, potentially making it best for:
To be considered an accredited investor, you must meet one of the following criteria set by the Securities and Exchange Commission (SEC):
Patch of Land states that it may charge investors a fee of up to 3% of the loan amount to help cover administrative costs. This is on par with what most of its competitors charge, whether it be a platform fee for property management or fees paid to directly to property sponsors.
Its $5,000 minimum investment isn’t nearly as steep as the $25,000 required of platforms like RealCrowd, CrowdStreet and ArborCrowd. But there are platforms that offer minimums lower than Patch of Land — Groundfloor allows investors to get started with just $10.
| Minimum investment | $5,000 |
| Average holding period | 12 months |
| Patch of Land investor fee | Up to 3% of the loan amount |
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Patch of Land investor reviews are few and far between. The platform is accredited with the Better Business Bureau and earns an A+ rating, but most of its BBB reviews and complaints come from borrowers, not investors. As of October 2020, the platform also boasts a TrustScore of 3.7 out of 5, but again — most of its Trustpilot reviews have been left by borrowers.
We only unearthed a few reviews from Patch of Land investors. One investor complained of a property foreclosure that left them with a diminished return. The other mentioned inconsistent timing with disbursement payouts. But overall, the platform appears to maintain a positive reputation among borrowers and has no registered complaints on the Consumer Financial Protection Bureau.
To get started, you’ll first need to be an accredited investor. Then:
You’ll need to meet the following eligibility requirements:
During your application, you’ll need to provide the following information:
After signing up, you can dive right in:
You can contact Patch of Land either by phone or email.
Patch of Land has a mix of residential and commercial short-term investments. Its underwriting process is stringent and is demonstrated by its prefunded deals. But only accredited investors can apply.
Before deciding on a real estate investment platform, be sure to compare your options.
Patch of Land is not currently available on Finder
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