Good Morning, Afternoon, or Evening All!
I am wondering if anybody has utilized Patch of Land for the BRRRR strategy?
From what I understand they will fund 85% of purchase price, plus 100% of rehab cost, but traditionally for fix-and-flip deals. I'm currently looking at a victorian style home that was gutted, and had plans approved to be transformed into a 7 unit building. The owner passed away, and property has been sitting for a couple of years. Potential aquisition price around 40k, and has a rough ARV of around 250k. However, I am looking at the potential to rent each unit for between 400-450 a month, and the 2800-3150 gross monthly income would be great!
We are looking into patch of land, but can't seem to find much about people who held a loan with them more than a couple of months. Thank you in advance for your assistance with this matter!
@David Pere no comment on PoL but you should have no trouble finding hard money if the deal is good enough. Once you get the property fixed and leased, then it's time to refinance with a traditional bank. Best case, you're on the hard money note for 4 to 6 months.
Hello @David Pere ! I just closed on a BRRRR deal with Patch of Land. So far I’m happy, because they closed on time, which wasn’t a sure thing. I would caution that you need to be your own advocate and keep on top of them. For me, there was a last minute scramble where I wasn’t sure if they would follow through. It seems like it is regular procedure to wait to final process your file until the last minute. Somewhat stressful. I think in the future I’ll give them an earlier timeframe and actually schedule closing for late afternoon or the following day.
They pay for 100% of the rehab but they pay it out in draws after you complete blocks of the work. Feel free to contact me if you want to speak directly about it.
@Ivan Barratt and @Garrett M. Thank you both for the timely replies, and solid information! Turns out there was a foundational error with the property that drives the rehab costs up significantly. No longer fits within my parameters, but this information will be useful when I find the deal to utilize it!
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