Institutional Fund Gives $250M to Patch of Land

Jason Fritton: “This is a landmark moment for not only Patch of Land, but for the real estate crowdfunding industry overall.”

LOS ANGELES—An unnamed East Coast credit fund has agreed to purchase $250 million in loans from Patch of Land in a forward flow arrangement. This is the fund’s first investment in the crowdfunding or peer-to-peer arena, and marks a huge milestone for Patch of Land that will accelerate the firm’s projected growth for 2016.

“It’s an important milestone because it shows that a large credit fund has vetted our company, our underwriting process, and our paper, and feels confident in making a substantial investment in our product,” Jason Fritton, co-founder and CEO of Patch of Land, tells GlobeSt.com. “The data-driven models being applied by Patch of Land instill confidence in the products offered. It also means that on a company level, we can scale our originations, and the company itself, because we have partners that are willing to buy such large loan volume. And in today’s world, we can also achieve profitability very quickly.”