Patch of Land is part of the fast moving real estate crowdfunding sector. The founders have positioned there company to fill a funding void that has been largely ignored by larger investors but promise substantial returns. There is a significant opportunity in innovating the funding process for property valued at less than $10 million.
The crowdfunding platform is in the debt based sector of the crowdfunding world. Earlier this year they presented at the Lendit conference positioning their platform as a P2RE portal. Otherwise a Peer to Real Estate Marketplace. While they use Title II of the JOBS Act offering up private placements to accredited investors – they are not opposed to going the retail crowdfunding route contingent upon final regulations of course.
Below is an infographic on the past six months of operations (created in April so most certainly these numbers have grown since). To bullet out some of the highlights:
- $2.3 million in funded deals
- Average loan size is $230,000
- Total cost of funded properties is $4.8 million
- 12.6% blended average rate of return
While in the world of real estate these numbers seem small, I assure you- this is just the beginning.