Patch of Land

About Patch of Land

Patch of Land is a direct private lender focusing on investment residential fix-and-flip, bridge, rental, and commercial property loans. Patch of Land’s interest rates start at 4.25% and are available for a short term of 12 to 24 months, or a long term up to 30 years. The company offers financing up to 90% of your property value and will consider up to 90% loan-to-cost (LTC) for construction projects. Patch of Land is a great option for borrowers looking for short-term, or long-term affordable financing to capitalize on an opportunistic real estate transaction. Patch of Land is a nationwide private lender although some geographic restrictions may apply. Patch of Land makes investment property loans only and does not make owner-occupied home loans.

The firm was founded in 2012, is headquartered in Sherman Oaks, CA, and has funded close to $1 billion of investment real estate projects.

Contact Patch of Land:

  • Visit Patch of Land’s Website
  • 15000 Ventura Blvd. Suite 300, Sherman Oaks, CA 91403

Loan Programs

Historically, Patch of Land’s primary focus has been investment residential fix and flip loans and rental property loans. However, the firm also offers competitive bridge and construction loan programs for investment residential, multifamily, and mixed-use (less than 50% commercial) property. Patch of Land can provide purchase, refinance, refinance cash-out, renovation, and construction financing for both vacant and occupied investment property.

Fix & Flip Loan Program Highlights / Guidelines

A fix and flip loan is a short-term loan for a borrower looking to purchase or refinance a property that requires renovation work. Usually a fix and flip loan will enable a borrower to achieve a profit from the sale of a property for more than it cost to purchase and renovate it. Refinancing into a permanent loan and renting out the renovated property to receive an income stream, is also a common objective for a borrower seeking a fix and flip loan.

Patch of Land offers ground-up constructions loans for single family residential, 2 to 4 unit residential, condominiums, multifamily 5+ units, and mixed-use property. 12-24 month terms up to 90% loan-to-cost, with no prepayment penalty, and rates from 7.99% on loan amounts up to $3 million are available.

  • Loan sizes from $150,000 to $3+ million
  • Loans secured by single family residential, 2 to 4 unit residential, condominiums, townhouses, multifamily apartments, mixed-use buildings > 50% residential
  • 600 minimum credit score required
  • Loan-to-value (LTV) up to 90%
  • No occupancy requirement or minimum debt-service coverage ratio
  • Interest is only paid on funds that have been disbursed
  • 12 month loan term
  • No prepayment penalty
  • Interest rates from 7.99%
  • Close in as little as 7 days

Rental Loan Program Highlights / Guidelines

A rental loan is a short or long-term loan for a borrower looking to purchase, refinance or pull cash out of an investment rental property. This program differs from the fix and flip program because the property must be occupied and meet a minimum debt-service coverage requirement; no renovation or rehab budget will be financed by Patch of Land. This program would be a good loan option for a borrower with a time-sensitive real estate scenario (expiring purchase contract or fast cash-out is needed). A rental loan would be beneficial for a borrower needing to reestablish credit to become eligible for more bankable terms, or a borrower looking for an easier permanent mortgage process.

  • Loan sizes from $100,000 to $2 million
  • Loans secured by single family residential, 2 to 4 unit residential, condominiums
  • 620 minimum credit score required
  • Loan-to-value up to 80%
  • A minimum debt-service coverage ratio may be required
  • 30-year fixed with an interest only option available
  • Interest rates from 4.25%
  • Close in as little as 20 days

Bridge Loan Program Highlights / Guidelines

A bridge loan is a short-term loan that usually assists in bridging a borrower from a less favorable situation to a more favorable situation. For example, a borrower with troubled credit may take out a bridge loan on his property to pay-down debt, judgments or rectify other issues to improve his score and then refinance into a permanent loan. Real estate collateral is essential to Emerald Creek’s program and borrowers without hard commercial real estate or investment residential real estate collateral are not eligible for financing.  

  • Loan sizes from $150,000 to $3+ million
  • Loans secured by single family residential, 2 to 4 unit residential, condominiums, townhouses, multifamily apartments, mixed-use buildings > 50% residential
  • 600 minimum credit score requirement
  • Loan-to-value up to 80%
  • No occupancy requirement or minimum debt-service coverage ratio
  • No prepayment penalty
  • 12 month loan term
  • Interest rates from 7.00%
  • Close in as little as 7 days
Visit Patch of Land

The Loan Process

LendVer did not shadow the application or loan process for Patch of Land but the company outlines fairly detailed steps on its website.

Step 1: The first step is to request a Patch of Land representative contact you by inputting your contact information here. Next, a representative will reach out and direct you to complete a brief 5-minute application on the company’s secure website. Be prepared to answer questions about the transaction you are seeking financing for, along with information about your investment experience, financial background and credit history.

Step 2: After your application is completed a Patch of Land representative will contact you to review your application for completeness. Any questions about your application will be addressed along with a discussion about any eligible programs.

Step 3: If you are eligible for financing through Patch of Land based on your initial quick-application and conversation with your representative, you will be forwarded formal application documents that request more detailed information about your loan request.

Step 4: The due diligence and underwriting process will begin along with a formal review of your property, which will include an appraisal. Patch of Land states that it does not charge junk or hidden fees of any kind and has a transparent due diligence process.

Step 5: Upon satisfactory completion of your due diligence process your loan will be ready for funding. Patch of Land is a direct lender so your project can start without delay. If renovation funds were included in your loan, then these will be disbursed on an agreed upon draw schedule as you complete the required work; you will only pay interest on funds disbursed.

Here is an estimated list of required documents you can expect:

  • Credit Report (all scores, not just the middle score)
  • Proof of Funds (for down payment, closing cost, etc.)
  • Inspection Report of the Property (if available)
  • List of Comparable Sales (CMA, BPO, MLS listings)
  • Purchase Contract (if a purchase)
  • Property Management Questionnaire (rental only)
  • Construction Estimate & Time-frame (if applicable)
  • Contractor Information
  • Payoff Statement (if a refinance)
  • Borrower’s Attorney Information
  • Articles of Incorporation
  • Developer Biography (if applicable)
  • Property Description/Plans

Pros

  • Patch of Land offers aggressive terms compared to many of the private money lenders we reviewed. Rates start on the low end of the spectrum at 4.25%, and a high maximum LTV of 90%.
  • Patch of Land closes fast, funding loans in as little as 5 days with 7 to 10 days being the norm. The firm requires minimal paperwork and is transparent about its process.
  • A variety of property types are considered from single family investment residential, all the way up to mixed-use commercial property. Patch of Land is a good one-stop-shop for your private money financing needs.
  • Patch of Land offers small loans sizes down to $100,000 for residential. It’s difficult to find private money lenders that consider loans sizes this small as most prefer larger loans of $1+ million.
  • Patch of Land offers renovation and construction financing for commercial property, this is also uncommon due to the many variables that surround this financing type.

Cons

  • Patch of Land’s is interested in making loans secured by property with a majority investment residential component. This means that property that is 50% or greater commercial, will not be considered.
  • Patch of Land is not the best fit for a borrower with serious credit issues. The firm prefers credit scores over 600.

Why Patch of Land is the Best

Patch of Land offers a fast, low documentation loan process with affordable private money rates and high leverage. The company’s process and fees are transparent and it has a dedicated team to assist you along the way. Additionally, first time flippers and private money borrowers are eligible for financing which is not possible through many other lenders. The small loan sizes Patch of Land considers along with commercial property financing, means more borrowers will be eligible for financing. Creative programs like 30-year fixed rental loans, multifamily and mixed-use renovation loans, and ground-up construction loans make Patch of Land a great option for hard to find financing.

Visit Patch of Land

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