Patch of Land Makes History Closing Largest Residential 506(C) Crowdfunded Loan To Date
Los Angeles, CA, May 28, 2015 (Newswire.com) - Patch of Land, a crowdfunding solution for real estate financing that brings together borrowers and lenders through an online and mobile platform, announces today that the largest ever, entirely crowdfunded residential home loan was fully funded through Patch of Land. The Covered Wagon Investment Group, boasting over 60 years of real estate and property development experience, purchased the 16,000 square foot suburban family estate in Arcadia, California with plans to renovate and increase its value to $3.3M.
"We are proud to announce that in under four weeks, Patch Of Land has funded the largest ever crowd-financed residential home loan valued at just under $1.9M entirely through individual accredited investors. Though Patch of Land pre-funds every loan, the speed at which loans have been funding, and how quickly our company and industry continues to grow, affords us great confidence that this will not be the last deal of its kind," said Jason Fritton, CEO and Co-Founder.
"We are proud to announce that in under four weeks, Patch Of Land has funded the largest ever crowd-financed residential home loan valued at just under $1.9M entirely through individual accredited investors. Though Patch of Land pre-funds every loan, the speed at which loans have been funding, and how quickly our company and industry continues to grow, affords us great confidence that this will not be the last deal of its kind,"
Jason Fritton, CEO and co-founder
The Arcadia home sits on a one third acre plot and will be increased to 4,800 livable square feet.
The $1,890,000 loan was fully funded as of May 20th through 63 investors from all over the country, each of whom played an integral part in the funding process. Other highlights include:
- Over 1/3 Acre of Land (15,935 sq. ft.)
- Appraised at $3.3M w/ Renovations
- 4 Bedrooms, 3 Baths, 2 Stories, 14 Total Rooms
The size in which Patch of Land can lend is not the only aspect to be marveled. The speed at which they can lend is also making history across the industry. Patch of Land is proud to share that they're funding deals around the country in record time. The company recently funded an Elizabeth, New Jersey multi-family property in less than an hour. Recent rapidly funded loans:
- 223 S. 2nd St., Elizabeth, NJ 07206 - $160,000 funded in under one hour
- 1336 Downs Ave., Charlotte, NC 28205 - $100,000 funded in 4 days
- 7373 E. Fremont Dr., Centennial, CO 80112 - $264,000 funded in 4 days
The powers of 'peer-to-peer' and of individuals investing in professional borrowers continue to increase property values through their work on real estate across the country.
With Patch of Land's prefunding first mechanism, borrowers are able to get their funding right away, and then investors can review the loan and project before making a determination of whether they want to invest. In the case of Arcadia, the borrowers did not have to wait 30 days to receive the money; they have already begun the rehab process on the property and investors have Patch of Land (POL) is a crowdfunding solution for real estate financing that brings together borrowers and lenders through a simple online interface. Patch of Land's goal is to solve the problem of inefficient, fragmented, and opaque real estate lending by using proprietary technology, data-driven processes and expert human touch to efficiently, and accurately underwrite projects. Our transparent, simple and efficient solution allows accredited investors to easily diversify their funds while giving borrowers reliable access to capital for rehabilitating properties in need. In fact, we prefund every loan with our own money so we look at each investment opportunity as if our own skin was in the game - because it is. This way, borrowers receive the funding for their projects without delay, while lenders can start earning interest on their investment right away. Patch of Land fills the void in between slow, over-regulated banks, and hard money lenders that cannot supply timely or consistent sources of capital. Together with our marketplace of investors and borrowers, we facilitate the work of rebuilding neighborhoods, increasing property values, creating jobs, and stimulating local economies throughout the nation.
For more information about Patch of Land please visit: www.patchofland.com.
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