Patch Lending

About Patch Lending

Patch Lending (formally Patch of Land) is a national private lender offering real estate investors fast and reliable financing for investment properties. Patch offer short-term single-family and multi-family bridge, fix & flip, ground-up construction, and long-term rental property financing. They offer terms from 12 months to 30-years, with loan amounts ranging from $100,000 to $3,000,000.Loan Types Offered: Non-Owner Occupied Investment Property Loans, Fix and Flip Loans, Ground-up Construction Loans, Purchase/Refinance/Cash Out Loans, Bridge Loans, Transitional LoansProperty Types Covered: Single-Family, Multi-Family, Apartments, Mixed-Use

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans, Bridge Loans, Hard Money Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use, Warehouse, Industrial

Areas Served: AK, AL, AR, CA, CO, CT, DC, DE, FL, GA, HI, IA, IL, IN, KS, KY, LA, MA, MD, ME, MI, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, RI, SC, TN, TX, VA, VT, WA, WI, WV, WY

Licenses: California Finance Lenders license #60DBO 45420, Oregon Mortgage Lenders license #5384, NMLS #1286539

Lending Guidelines for Patch Lending

Below are the general loan guidelines published on the Patch Lending website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Patch Lending.

Loan Example 1

Patch of Land makes a hard money loan to Leigh for a rehab project in Raleigh, NC, on a house that costs $220,000. Because the lender sets a 55% loan to value, Leigh will need to put 45% down so the amount of the loan will be $121,000. The parameters of the loan dictate a 13% note for 6 months. They also stipulate a 1 point origination fee, that will also need to be paid at closing.

In accordance with the terms of the note, Leigh will be required to contribute a $1,210 origination fee in addition to 45% of the purchase price, or $99,000, based on the 55% LTV. she will then pay $1,311 monthly to the lender. At the end of the note, she sells the renovated house for $330,000. After deducting the $7,865 in interest expenses ($1,311 multiplied by 6 months), the $1,210 origination fee, the $121,000 principle amount on the note, and the $99,000 she brought to closing, she will make a gross profit of $100,925 ($330,000 sales price minus $229,075 in total costs). This amount would then be reduced by any renovation costs paid by the borrow.

Loan Example 2

Harvey takes a loan from Patch of Land in order to rehab a house to flip in Durham, NC. The deal has the following parameters:

$270,000 sales price
55% loan-to-value (LTV)
12 month term
12% rate of interest
2% origination fee

Once the rehab project is completed, if Harvey sells the project for $351,000, the numbers would be the following:

$351,000 sales price
- $148,500 principle (55% LTV)
- $121,500 cash paid at closing (45% on 55% LTV)
- $2,970 origination fee (2% of the $148,500 principle)
- $17,820 total interest paid (12 months x 12% interest)
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= $60,210 gross profit (does not include taxes or rehab costs)