Patch of Land

High-Level Overview

Patch of Land (recently rebranded to Patch Lending) is a PropTech company providing a real estate lending platform that connects borrowers with investors for funding non-owner-occupied real estate projects overlooked by traditional banks.[1][2][6] It builds a technology-driven marketplace for private real estate debt, serving real estate investors (borrowers) seeking fast capital and accredited investors looking for diversified, high-yield opportunities backed by property collateral.[1][3][5] The platform solves inefficiencies in fragmented, opaque private lending by using proprietary tech, data analytics, and streamlined underwriting to reduce costs, speed up approvals (as fast as 5 days via pre-funding), and enable scalable funding—having originated over $1.5B in loans across 3,400+ projects.[3][6] Growth momentum includes $24.8M raised (last in a $23.6M Series A ~10 years ago), annual revenue of $16M as of 2024, and a strategic pivot to focus exclusively on real estate investor lending.[1][5][6]

Origin Story

Founded in October 2013 by brothers Jason and Brian Fritton, along with co-founder Carlo Tabibi (former CEO and Chairman), Patch of Land emerged as one of the earliest real estate crowdfunding platforms enabled by the JOBS Act's crowdfunding exemptions.[2][3][5] The idea stemmed from addressing slow, inefficient bank lending for real estate projects, leveraging technology for better risk assessment and transparency.[1][3] Early traction included pioneering pre-funded loans (post-due diligence commitments via internal credit lines for quick closings), funding 151 loans totaling $53M within two years of launch, and expanding to commercial real estate with 6-10% yields on 12-month terms.[3][8] A pivotal $23.6M Series A in 2015 fueled growth, leading to a 2020s rebrand to Patch Lending amid a sharpened focus on debt capital for investors revitalizing U.S. housing stock.[1][6]

Core Differentiators

• Proprietary Technology and Processes: Uses data-driven underwriting, integrated loan origination/CRM systems (with 3 patents filed, e.g., for cloud-based mortgage APIs), and pre-funding to cut timelines/costs versus banks, enabling 5-day closings and accurate risk profiling.[1][3][6]
• Investor Accessibility and Returns: Low minimums for accredited investors, monthly interest payments, automatic updates, and secured loans yielding 6-10% annually, with easy diversification into residential/commercial real estate debt.[3][5][8]
• Borrower-Centric Speed and Flexibility: Funds "overlooked" projects (e.g., fix-and-flips, rehabs) with a full loan portfolio, $25T U.S. housing revitalization focus, and nationwide reach from its Sherman Oaks, CA HQ.[2][5][6]
• Transparency and Education: Real-time project updates, webinars on crowdfunding, and a track record of $1.5B+ funded/$10M+ returned early on, building trust in a peer-to-peer model.[3][6]

Role in the Broader Tech Landscape

Patch of Land rides the PropTech and fintech democratization wave, transforming opaque real estate debt markets by applying crowdfunding, AI-driven risk tools, and JOBS Act reforms to bypass banks amid rising demand for alternative capital in a $25T aging U.S. housing stock.[1][3][6] Timing aligns with post-2008 credit crunches and 2020s investor appetite for yield in low-rate environments, plus remote/digital lending booms accelerated by the pandemic.[6] Market forces like housing shortages, investor shift to real assets, and regulatory tailwinds for non-bank lenders favor its model, influencing the ecosystem by funding 3,400+ community-revitalizing projects and inspiring competitors like Groundfloor/Fundrise in real estate crowdfunding.[1][6]

Quick Take & Future Outlook

Patch Lending is poised to scale its $1.5B loan book further through tech enhancements (e.g., patent leverage) and expanded programs amid persistent housing demand and fintech maturation.[1][6] Trends like AI underwriting, embedded finance, and institutional real estate debt will amplify growth, potentially evolving its influence toward broader PropTech partnerships or non-accredited investor access. As a post-crowdfunding pivot success, it exemplifies how targeted tech lending fuels community wealth-building in fragmented markets—primed to underwrite the next wave of U.S. real estate revival.[6]