Patch of Land Launches Mid-Term Loan Product

Jason Fritton is the CEO of Patch of Land.

LOS ANGELES— Patch of Land is launching a new mid-term loan product with 24-36 month terms. The new product is an extension of the firm’s 12-month short-term product, which has seen phenomenal success, and will target borrowers unable to qualify for long-term debt for properties that have a value-add or rehabilitation business plan. “We saw the huge opportunity with this mid-term product because we noticed many of our borrowers have shifted their exit from a sale, into a hold, preferring to refinance a property after rehab and rent it out for cash flow,” Jason Fritton , CEO of Patch of Land, tells GlobeSt.com. “We’ve also been monitoring housing and local economic activity, especially changes in home buying and affordability patterns. There are multiple signs that point to rentals, especially single-family rentals, as a major opportunity. We know we’re able to provide speed and solutions to multiple gaps in the marketplace. These new solutions mirror what we have offered in the 12-month private money product. This mid-term will be the first of many flexible, innovative and necessary products we’ll be releasing.” The new product officially launched two weeks ago, and has already received $40 million in loan interest. That is impressive, considering that the firm has originated $100 million in short-term financing since its 2013 inception. The product is specifically for those borrowers with investments that have a repositioning, stabilization and tenant placement component, but that have an in-place cash flow and lower leverage than a 12-month short-term loan. “Our mid-term product fits well with real estate investors who are rehabbing and deciding to hold a property to build a rental portfolio, but need a couple of years to stabilize the value of the asset and cash-flows before putting conventional financing on the property,” adds Fritton. The firm is currently in 36 states, and this new loan product will be available across the platform. “This fits all geographies and multiple investor profiles, as there are a growing number of real estate investors interested in the single family rental space,” says Fritton. “This product also applies to our multi-family clients, especially on deals with terms longer than 24 months. We’re developing products that fill a need at every point in the real estate cycle.”