Patch Lending Company Profile
Background
Patch Lending, formerly known as Patch of Land, is a private money lender specializing in providing real estate developers and entrepreneurs across the United States with fast and reliable financing solutions. Established in 2013, the company has been instrumental in funding over 3,400 projects, totaling more than $1.5 billion in loans. The company's mission is encapsulated in its tagline, "Building Wealth. Growing Communities," reflecting its commitment to empowering clients to scale their real estate investments and positively impact communities by revitalizing the nation's housing stock.
Key Strategic Focus
Patch Lending focuses exclusively on providing debt capital for non-owner-occupied real estate investment properties. The company offers a comprehensive portfolio of loan programs tailored to various investment property projects, including:
- Fix & Flip Loans: Short-term financing for purchasing and renovating properties intended for resale.
- Multi-Family Loans: Financing solutions for acquiring or refinancing multi-family residential properties.
- Ground-Up Construction Loans: Capital for new construction projects from inception to completion.
- Long-Term Rental Loans: Financing options for investors seeking to acquire or refinance rental properties for long-term income generation.
By leveraging proprietary technology and a dedicated team, Patch Lending aims to streamline the lending process, enabling clients to access the necessary capital swiftly and efficiently.
Financials and Funding
Since its inception, Patch Lending has successfully funded over $1.5 billion in loans across more than 3,400 projects. The company has raised a total of $27 million in funding, with a notable $30 million debt financing round in June 2017. These funds have been strategically utilized to enhance the company's technological infrastructure, expand its loan offerings, and strengthen its market position within the private lending industry.
Technological Platform and Innovation
Patch Lending distinguishes itself through its innovative use of technology to facilitate real estate financing. The company operates a peer-to-real-estate (P2RE) lending marketplace, connecting borrowers with accredited investors. This platform pre-funds loans for approved borrowers, allowing them to commence projects immediately. Investors can then purchase portions of these loans with a minimum investment of $5,000.
The lending process involves a comprehensive due diligence procedure, including project evaluation, legal compliance, market analysis, management assessment, and financial underwriting. Proprietary algorithms are employed to construct risk profiles for each property, cross-referencing data from independent appraisals and leveraging underwriting expertise to ensure informed investment decisions.
Leadership Team
In April 2022, Patch Lending appointed Glenn Tatham as Chief Executive Officer. Tatham brings over three decades of financial experience to the role. Prior to joining Patch Lending, he co-founded Conventus Holdings Corporation in 2015, where he served as Chief Financial Officer. His previous roles include Director at LNG Partners and Vice President at JPMorgan Chase & Co. Tatham holds an MBA from Columbia Business School and a Bachelor's Degree in Business Administration from the University of Southern California.
Robert Greenberg serves as the Chief Marketing and Technology Officer, overseeing the company's marketing strategies and technological advancements. Under his leadership, the company underwent a rebranding from Patch of Land to Patch Lending in March 2022, reflecting a strategic shift to focus exclusively on providing debt capital for real estate investment properties.
Leadership Changes
The appointment of Glenn Tatham as CEO in April 2022 marked a significant leadership change for Patch Lending. Tatham succeeded the previous CEO, whose tenure and contributions were pivotal in establishing the company's foundation and initial growth.
Competitor Profile
Market Insights and Dynamics
The private money lending industry is a critical component of the real estate financing ecosystem, providing essential capital to investors and developers who may not qualify for traditional bank loans. The market has experienced significant growth, driven by increasing demand for alternative financing solutions and the proliferation of fintech platforms that streamline the lending process.
Competitor Analysis
Patch Lending operates in a competitive landscape alongside several key players:
- LendingTree: An online lending marketplace founded in 1996, LendingTree connects borrowers with multiple loan operators to find optimal terms for various financial products, including mortgages and personal loans.
- LendingClub: Established in 2006, LendingClub is a peer-to-peer lending platform that facilitates personal loans by connecting borrowers with investors. The company has expanded its offerings to include business loans and auto refinancing.
- LendUp: Founded in 2012, LendUp focuses on providing short-term loans and credit-building products to consumers with limited access to traditional credit. The company emphasizes financial education and responsible lending practices.
These competitors offer a range of lending products and services, leveraging technology to enhance user experience and expand access to capital.
Strategic Collaborations and Partnerships
In March 2022, Patch Lending announced an exclusive partnership with Newrez LLC, a national mortgage lending and servicing organization. This collaboration aimed to launch a co-branded homebuying and mortgage resource hub, providing consumers with up-to-date and relevant information pertinent to the homebuying and refinancing process. The partnership reflects Patch Lending's commitment to enhancing customer education and expanding its reach within the real estate financing market.
