Hey there folks, I’m so excited about what’s happening at Boston AREIA!
We have an incredible meeting coming up Thursday night, July 16th with Attorney Karen Guthrie with Cossingham Law to help with your buy and hold properties as well as with lease options. But, I just found out that Mark Sanner, on of Brownstone’s JV partners will be coming to outline his first deal with Brownstone! Thursday night’s meeting will be jam packed with networking, education and motivation to do your first or your next deal.
I’m am always looking for different ways to help people get their deals funded. And, I’ve recently partnered with Patch of Land. Patch of Land offers a unique way to get your deals funded. The process is simple, it takes 60 seconds sign up, it’s simple to submit a deal for funding, you can be funded in as little as 7 days, investors are kept up to date with the progress and when the deal is done, you pay the loan back and start again.
Patch of Land is crowdfunding real estate through its P2RE (peer-to-peer) online marketplace offering various typologies of secured real estate debt on assets backed by first position liens and personal guarantees. We match investors and lenders seeking alternative fixed income opportunities to borrowers seeking alternative sources of financing for their real estate investment needs.
Patch of Land aims to solve the problem of slow, inefficient, fragmented and obscure private real estate lending by using the latest technology, data and process efficiency to more accurately assign risk profiles and project viability, while greatly reducing time and cost of loan underwriting for borrowers with real estate projects that are overlooked or rejected by banks and traditional lenders.
Patch of Land works with real estate developers and hard money lenders who want to get more deals funded quickly. The borrower only pays for an appraisal, closing costs, origination points, and monthly interest. There are no hidden fees, junk fees or transactions fees either.
Projects are evaluated on a case-by-case basis and in addition to the criteria below, Patch of Land’s Executives, and friends and family regularly invest personally in the projects. Accordingly, they fund and list only the most promising projects after performing full due diligence and in partnership with 3rd parties.
Current guidelines for a debt purchase or refinance investments are:
- Minimum loan amount of $100,000
- LTV (Loan to Value) less than 80%
- Minimum down payment of 20%
- ARV (After Renovated Value) less than 65%
- Loan duration between 1-12 months with 6 month extensions available
- Will finance 100% of construction costs
- No Pre-Payment Penalties
They ask for personal guarantees. Some of the guidelines listed above are negotiable, depending upon the strength of the project. If a property can be purchased significantly below its market value or if the Developer offers additional security components, higher LTV or ARV may be considered.
I’m excited to have Patch of Land come to our August meeting to present to our investors. Stay tuned for more information on this meeting….
Bernadette Trafton, Boston AREIA Chief Connector