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.
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Crowdfunding Real Estate With Patch of Land
1.
2. The Internet Transforms Industries
2 Š2014 Patch of Land. Proprietary & Confidential.
Accommodations
Communications
Payments
Consumer Financing
Now Letâs Transform
Real Estate Lending
Taxi Service
3. Crowdfunding IsâŚ
â˘âŻ An approach to raising capital for new projects and businesses
by soliciting contributions, online, from a large number of
unrelated, individual stakeholders
â˘âŻ Made possible through SEC regulations (Reg D, 506c) and the
JOBS Act
â˘âŻ CrowdInvesting or CrowdFinancing
â˘âŻ Equity (ownership) or Debt (peer-to-peer lending)
3 Š2015 Patch of Land. Proprietary & Confidential.
4. Equity Vs. Debt Crowdfunding
Equity CrowdInvesting
â˘âŻ Equity ownership
â˘âŻ Long Term
â˘âŻ Unknown Return
â˘âŻ Investors participate in
growth upside
â˘âŻ Start-Up, Venture Capital
or Angel Investments
â˘âŻ SeedInvest, Equities.Com,
CircleUp, FundersClub,
Angelist
Peer-to-Peer Lending
â˘âŻ Loans (debt investing)
â˘âŻ Short Term
â˘âŻ Fixed Coupon
â˘âŻ Investors receive monthly
interest payments
â˘âŻ No equity ownership or
upside
â˘âŻ Prosper, Lending Club,
SoFi, Ondeck, Patch of
Land
â˘âŻ Already multi-billion dollar
industry
4
Š2015 Patch of Land. Proprietary & Confidential.
5. Why is Crowdfunding a
Game Changer for Real Estate Financing?
Š2014 Patch of Land. Proprietary & Confidential.
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6. The Problem: Ease of Access to Capital
Real Estate
Â
Investor
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â˘âŻ Has capital to invest
â˘âŻ Desires a high RORâROI
percentage
â˘âŻ Poor portfolio
performance â stocks &
bonds, CDâs, mutual
funds, etc.
â˘âŻ Desires real estate as a
high performing
investment
Borrower
Â
â˘âŻ Has little or no access to
capital, especially not
consistently
â˘âŻ Doesnât have time or
connections to raise
money
â˘âŻ Banks will not lend
â˘âŻ Private money rates are
too high
14
? ?
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Š2015 Patch of Land. Proprietary & Confidential.
7. The Solution: Connecting Capital Online
Investors
Â
Borrower
Â
14 Š2015 Patch of Land. Proprietary & Confidential.
$
Real Estate Investments
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$
9. 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
Š2015 Patch of Land. Proprietary & Confidential.
10. 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
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Š2015 Patch of Land. Proprietary & Confidential.
11. 11
Iâm a Borrower: How Do I Work
with a Crowdfunding Platform?
â˘âŻ What are you looking for? Partners vs. Lenders
â˘âŻ Types of financing available: Debt vs. Equity
â˘âŻ Choose Wisely: Know Your Portal
â˘âŻ Documentation & Prep: Full docs
â˘âŻ Due Diligence: More is better â be ready
â˘âŻ Public Profile: Wisdom of the crowd
Š2015 Patch of Land. Proprietary & Confidential.
12. 12
Iâm An Investor: How Do I Choose a
Crowdfunding Platform?
â˘âŻ What are you looking for? Equity vs. debt
â˘âŻ What are you looking for? Long vs. short term
â˘âŻ Diversify: Build your own portfolio
â˘âŻ Documentation: Docs & info are available
â˘âŻ Due Diligence: Call, write, speak, ask
â˘âŻ Track Record: Transparency, volume, success
Š2015 Patch of Land. Proprietary & Confidential.
13. How it Works: The Patch of Land Platform
13
SOURCING FUNDING SERVICING
Servicing:
â˘âŻ Account management
â˘âŻ Communication Portal
â˘âŻ Distribution Management of
Funds
â˘âŻ Legal and Tax Documents
â˘âŻ Regulatory Compliance
â˘âŻ Investor Management
Funding:
â˘âŻ Prefund project
â˘âŻ Present project online
â˘âŻ Manage campaign
â˘âŻ Inform investors
â˘âŻ Fully fund project
Sourcing
â˘âŻ Signup developer account
â˘âŻ Collect developer information
â˘âŻ Collect project information
â˘âŻ Conduct due diligence
â˘âŻ Approve project and funding
request
Š2015 Patch of Land. Proprietary & Confidential.
14. 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
Š2015 Patch of Land. Proprietary & Confidential.
15. The Win-Win-Win-Win Partnership
15
Borrower:
â˘âŻ Quicker access to capital
through prefunding
â˘âŻ Fair rates based on risk
â˘âŻ Consistent, reliable access
to capital
â˘âŻ No investor management
â˘âŻ No time wasted raising
funds
â˘âŻ Branding & Networking
Patch of Land:
â˘âŻ Origination fees
â˘âŻ Repeat borrowers
â˘âŻ Repeat investors
â˘âŻ Low overhead costs and
increased efficiencies
â˘âŻ Scale & volume
Investor:
â˘âŻ High returns on real estate
â˘âŻ Diversification
â˘âŻ Access to deal flow
â˘âŻ 100% transparent
â˘âŻ Due diligence at fingertips
â˘âŻ Monthly distributions
â˘âŻ Simple user interface and
e-sign documentation
Neighborhood:
â˘âŻ Property improvement
â˘âŻ Better housing
â˘âŻ Rising property values
â˘âŻ Economic development
â˘âŻ Improved lifestyle
â˘âŻ Attracts people
â˘âŻ Rebuilding America
Š2015 Patch of Land. Proprietary & Confidential.