Institutional marketplace lending funds, Prime Meridian Capital Management and AlphaFlow, commit to ongoing, fractional investments with real estate platform
LOS ANGELES– June 8, 2016 (NewsWire.com) – Patch of Land, a leading online marketplace lender for real estate, announced today that it has added more institutional funding partners that invest fractionally on the platform. Prime Meridian Capital Management, an investment management firm specializing in online Peer-to-Peer (P2P) lending strategies and AlphaFlow, a P2P investor technology platform founded by a real estate crowdfunding veteran, have committed to invest in Patch of Land loans from their real estate lending funds.
EVP of Business Development Jillian Jaccard comments, “We’re seeing an increase in institutional investor appetite for our fractional investment product. This is because we’ve built a model that makes fractional investing standardized, accessible, and attractive to even the most sophisticated investors, especially funds that can achieve greater diversification than an individual could.”
Prime Meridian, AlphaFlow and several other institutions have have identified Patch of Land as an originator that can supply consistent, standardized, data-decisioned credit products to meet their targets and returns. Investments are made on a fractional basis on the Patch of Land platform, in the same manner as accredited investors transact in their individual loan selection. This is a key difference from forward-flow or whole loan purchasing agreements, in which an institution purchases an entire note.
Portfolio Manager and Managing Partner at Prime Meridian Don Davis remarks, “We continue to see strong investor demand in our marketplace lending funds, as well as high relative performance. The innovation in the online real estate financing space, in particular, is very promising and Patch of Land has proven to be a sound player in the game. This is a partnership we look forward to building and envision strong growth in the future.”
Ray Sturm, CEO of AlphaFlow, states, “In evaluating partners, we have a strong focus on platforms with experienced management teams, data-driven underwriting, and a culture of transparency. Patch of Land’s track record, which extends back to the earliest days of the industry, demonstrates an ongoing commitment to these values and we are eager to find additional ways to work with the team as we move forward.”
Since issuing its first loan in October 2013, Patch of Land has been a recognized leader in the online real estate lending space thanks to the company’s focus on real estate debt, diversified lending products including short term bridge, commercial and rental loans, its innovative investor note structure, and the prefunding of loans. Since inception, Patch of Land has returned more than $30M of principal and interest payments to investors, and funded more than 270 projects totaling $130M, with an average blended rate of return to investors of over 11 percent.
About Patch of Land:
Patch of Land is a real estate marketplace lender that uses proprietary technology and data to provide transparent, scalable, and efficient lending solutions. Patch of Land offers borrowers access to reliable capital for residential and commercial real estate projects, while providing investors easy diversification into real estate with low minimums and a best-in-class secured loan structure. For more information please visit PatchofLand.com