Patch of Land Returns $10M to Investors in Less than 2 Years: What Does this Mean for Alternative Financing?

Patch of Land  |

As the power of alternative financing for real estate increasingly gains momentum across the United States, Patch of Land continues to lead the charge. The company announced a major milestone today: They have returned $10M to investors in less than two years.

The company has experienced massive growth since its inception in October 2013, having funded more than 150 projects, prefunding and then crowdfunding over $50M with an average blended rate of return of 11.91%.

Patch of Land is helping thousands of investors from across the country participate in residential and commercial projects. This has allowed the company to grow from a platform initially launched to help underserved communities revive and reinvest in their own neighborhoods, to investment opportunities currently spanning nearly half of the fifty United States.

From Startup to Leading Edge

Originally launched when crowdfunding exemptions were written into the JOBS Act, Patch of Land has since prospered by being a “disruptor” that offers tranquility to investors.

Initially, what Patch of Land and a handful of other alternative financing platforms were doing was thought of as “revolutionary” and “disruptive” in the same way other current staples of the new economy once were, such as Amazon.com, Inc. (AMZN) and Netflix, Inc. (NFLX) and now, Uber, Airbnb and others. Patch of Land’s current “multi-million” road markers serve as “proof of concept” – indicating that alternative modes of real estate finance aren’t going away.

As with many other formerly “disruptive” startups in the 21st Century economy, Patch of Land essentially takes the middleman out of the equation, thereby saving investors money. By expanding nationwide, Patch of Land allows these investors to put those additional funds to work in a variety of different deals and projects, no longer restricted by local geography. Each deal or project helps to revive and replenish a neighborhood, city, or commercial development.

The Future

Alternative platforms for real estate financing are becoming more commonplace for an ever-expanding group of investors. The good news is that it remains easy for investors to get involved and be a part of all upcoming milestones and markers in Patch of Land’s future.

Patch of Land and other alternative investment platforms are becoming increasingly attractive to a broader array of institutional and “traditional” corporate and financial partners, allowing for new milestones and markers to arrive even more quickly. What was once “disruptive” or “on the edge” is simply becoming “the way it’s done” – with increasing benefit for all parties and all “patches of land” involved. For the industry at large, Patch of Land’s success has opened the door for a greater variety of alternate financing options. As technology finds a stable home in the real estate market, Patch of Land looks to leverage their position and provide consistent returns to investors.

Jason Fritton is Co-Founder and CEO of Patch of Land, a leading alternative solution for real estate financing that brings borrowers and lenders together through a simple online interface. The Company's goal is to solve the problem of inefficient, fragmented, and opaque real estate lending by using human-powered technology and data-driven processes to create transparency and efficiently underwrite projects.

Jason originally conceptualized Patch of Land in early 2011 as a means to help rescue parts of Chicago devastated by the real estate crash. He has been involved with crowdfunding legislation since the beginning and worked with Congressmen to advocate for the crowdfunding exemptions that were written into the 2012 JOBS Act. 

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