We recently were very happy to see great news about Cloud Lending Solutions’ client, Patch of Land (POL). A leading online marketplace lender for real estate, they recently announced an important milestone – they have originated over $100 million in short-term loans for real estate professionals who purchase, rehabilitate and refinance undervalued residential and commercial properties. POL also announced that the company has returned over $25 million in principal and interest to its investors, representing a quarter of the volume of originated loans. This is a fantastic accomplishment.
Patch of Land solves the problem of inefficient, fragmented, and opaque real estate lending with proprietary technology and data-driven processes that provide transparency, and scalable, efficient underwriting. POL offers professional real estate borrowers a complete loan package that can close hassle-free in a week. Investors working with POL can expect a risk adjusted return with extensive available data to support the underlying credit decision on each loan.
Their platform offers automation and data driven underwriting to make smarter and faster lending decisions. Since its inception in October 2013, the company has funded more than 220 projects and experienced 515% year-over-year origination growth from 2014 to 2015. POL is looking forward to similar growth in 2016.
POL also announced a new mid-term offering that provides bridge financing to borrowers who may not immediately qualify for long-term financing on properties that they rehabilitate and then hold as rentals. Borrower demand for the product has already yielded over $40 million in loan interest in less than two weeks since being announced in a beta email campaign. This product enables POL 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.
Patch of Land continues to expand its national footprint, providing its marketplace of individual accredited, and institutional investors with short-term real estate debt opportunities across 36 states, now including Hawaii.
Patch of Land has many industry firsts; the first to focus exclusively on real estate debt investments; the first to offer prefunded loans, dramatically shortening the time developers have to wait to get funded while minimizing investors’ cash drag; and the first to offer a note structure that provides multiple investor security benefits. We spent some time with them at Lendit 2016 last week and they were sought after as presenters, thought leaders, and by customers and investors. The Cloud Lending Solutions team is proud to be a trusted partner to Patch of Land and wish them even greater success this year.