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The Internet Transforms Industries
2 Š2014 Patch of Land. Proprietary & Confidential.
Accommodations
Communications
Payments
Consumer Financing
Now Let’s Transform
Real Estate Lending
Taxi Service
Crowdfunding Is…
•  An approach to raising capital for new projects and businesses
by soliciting contributions, online, from a large number of
unrelated, individual stakeholders
•  Made possible through SEC regulations (Reg D, 506c) and the
JOBS Act
•  CrowdInvesting or CrowdFinancing
•  Equity (ownership) or Debt (peer-to-peer lending)
3 Š2015 Patch of Land. Proprietary & Confidential.
Equity Vs. Debt Crowdfunding
Equity CrowdInvesting
•  Equity ownership
•  Long Term
•  Unknown Return
•  Investors participate in
growth upside
•  Start-Up, Venture Capital
or Angel Investments
•  SeedInvest, Equities.Com,
CircleUp, FundersClub,
Angelist
Peer-to-Peer Lending
•  Loans (debt investing)
•  Short Term
•  Fixed Coupon
•  Investors receive monthly
interest payments
•  No equity ownership or
upside
•  Prosper, Lending Club,
SoFi, Ondeck, Patch of
Land
•  Already multi-billion dollar
industry
4
Š2015 Patch of Land. Proprietary & Confidential.
Why is Crowdfunding a
Game Changer for Real Estate Financing?
Š2014 Patch of Land. Proprietary & Confidential.
5
The Problem: Ease of Access to Capital
Real Estate	
  
Investor	
  
•  Has capital to invest
•  Desires a high ROR–ROI
percentage
•  Poor portfolio
performance – stocks &
bonds, CD’s, mutual
funds, etc.
•  Desires real estate as a
high performing
investment
Borrower	
  
•  Has little or no access to
capital, especially not
consistently
•  Doesn’t have time or
connections to raise
money
•  Banks will not lend
•  Private money rates are
too high
14
? ?
$
Š2015 Patch of Land. Proprietary & Confidential.
The Solution: Connecting Capital Online
Investors	
  
Borrower	
  
14 Š2015 Patch of Land. Proprietary & Confidential.
$
Real Estate Investments	
  
$
Crowdfunding Reach: Amplify & Expand
8
Crowdfunding
Brokers &
Network
Sponsor
Š2015 Patch of Land. Proprietary & Confidential.
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.
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
$
Š2015 Patch of Land. Proprietary & Confidential.
11
I’m a Borrower: How Do I Work
with a Crowdfunding Platform?
•  What are you looking for? Partners vs. Lenders
•  Types of financing available: Debt vs. Equity
•  Choose Wisely: Know Your Portal
•  Documentation & Prep: Full docs
•  Due Diligence: More is better – be ready
•  Public Profile: Wisdom of the crowd
Š2015 Patch of Land. Proprietary & Confidential.
12
I’m An Investor: How Do I Choose a
Crowdfunding Platform?
•  What are you looking for? Equity vs. debt
•  What are you looking for? Long vs. short term
•  Diversify: Build your own portfolio
•  Documentation: Docs & info are available
•  Due Diligence: Call, write, speak, ask
•  Track Record: Transparency, volume, success
Š2015 Patch of Land. Proprietary & Confidential.
How it Works: The Patch of Land Platform
13
SOURCING FUNDING SERVICING
Servicing:
•  Account management
•  Communication Portal
•  Distribution Management of
Funds
•  Legal and Tax Documents
•  Regulatory Compliance
•  Investor Management
Funding:
•  Prefund project
•  Present project online
•  Manage campaign
•  Inform investors
•  Fully fund project
Sourcing
•  Signup developer account
•  Collect developer information
•  Collect project information
•  Conduct due diligence
•  Approve project and funding
request
Š2015 Patch of Land. Proprietary & Confidential.
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.
The Win-Win-Win-Win Partnership
15
Borrower:
•  Quicker access to capital
through prefunding
•  Fair rates based on risk
•  Consistent, reliable access
to capital
•  No investor management
•  No time wasted raising
funds
•  Branding & Networking
Patch of Land:
•  Origination fees
•  Repeat borrowers
•  Repeat investors
•  Low overhead costs and
increased efficiencies
•  Scale & volume
Investor:
•  High returns on real estate
•  Diversification
•  Access to deal flow
•  100% transparent
•  Due diligence at fingertips
•  Monthly distributions
•  Simple user interface and
e-sign documentation
Neighborhood:
•  Property improvement
•  Better housing
•  Rising property values
•  Economic development
•  Improved lifestyle
•  Attracts people
•  Rebuilding America
Š2015 Patch of Land. Proprietary & Confidential.
Crowdfunding Real Estate With Patch of Land

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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 Let’s Transform Real Estate Lending Taxi Service
  • 3. Crowdfunding Is… •  An approach to raising capital for new projects and businesses by soliciting contributions, online, from a large number of unrelated, individual stakeholders •  Made possible through SEC regulations (Reg D, 506c) and the JOBS Act •  CrowdInvesting or CrowdFinancing •  Equity (ownership) or Debt (peer-to-peer lending) 3 Š2015 Patch of Land. Proprietary & Confidential.
  • 4. Equity Vs. Debt Crowdfunding Equity CrowdInvesting •  Equity ownership •  Long Term •  Unknown Return •  Investors participate in growth upside •  Start-Up, Venture Capital or Angel Investments •  SeedInvest, Equities.Com, CircleUp, FundersClub, Angelist Peer-to-Peer Lending •  Loans (debt investing) •  Short Term •  Fixed Coupon •  Investors receive monthly interest payments •  No equity ownership or upside •  Prosper, Lending Club, SoFi, Ondeck, Patch of Land •  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. 5
  • 6. The Problem: Ease of Access to Capital Real Estate   Investor   •  Has capital to invest •  Desires a high ROR–ROI percentage •  Poor portfolio performance – stocks & bonds, CD’s, mutual funds, etc. •  Desires real estate as a high performing investment Borrower   •  Has little or no access to capital, especially not consistently •  Doesn’t have time or connections to raise money •  Banks will not lend •  Private money rates are too high 14 ? ? $ Š2015 Patch of Land. Proprietary & Confidential.
  • 7. The Solution: Connecting Capital Online Investors   Borrower   14 Š2015 Patch of Land. Proprietary & Confidential. $ Real Estate Investments   $
  • 8. Crowdfunding Reach: Amplify & Expand 8 Crowdfunding Brokers & Network Sponsor Š2015 Patch of Land. Proprietary & Confidential.
  • 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 $ Š2015 Patch of Land. Proprietary & Confidential.
  • 11. 11 I’m a Borrower: How Do I Work with a Crowdfunding Platform? •  What are you looking for? Partners vs. Lenders •  Types of financing available: Debt vs. Equity •  Choose Wisely: Know Your Portal •  Documentation & Prep: Full docs •  Due Diligence: More is better – be ready •  Public Profile: Wisdom of the crowd Š2015 Patch of Land. Proprietary & Confidential.
  • 12. 12 I’m An Investor: How Do I Choose a Crowdfunding Platform? •  What are you looking for? Equity vs. debt •  What are you looking for? Long vs. short term •  Diversify: Build your own portfolio •  Documentation: Docs & info are available •  Due Diligence: Call, write, speak, ask •  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: •  Account management •  Communication Portal •  Distribution Management of Funds •  Legal and Tax Documents •  Regulatory Compliance •  Investor Management Funding: •  Prefund project •  Present project online •  Manage campaign •  Inform investors •  Fully fund project Sourcing •  Signup developer account •  Collect developer information •  Collect project information •  Conduct due diligence •  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: •  Quicker access to capital through prefunding •  Fair rates based on risk •  Consistent, reliable access to capital •  No investor management •  No time wasted raising funds •  Branding & Networking Patch of Land: •  Origination fees •  Repeat borrowers •  Repeat investors •  Low overhead costs and increased efficiencies •  Scale & volume Investor: •  High returns on real estate •  Diversification •  Access to deal flow •  100% transparent •  Due diligence at fingertips •  Monthly distributions •  Simple user interface and e-sign documentation Neighborhood: •  Property improvement •  Better housing •  Rising property values •  Economic development •  Improved lifestyle •  Attracts people •  Rebuilding America Š2015 Patch of Land. Proprietary & Confidential.