What are the benefits of prefunding?
Patch of Land's prefunding strategy helps real estate developers secure good investment opportunities and begin their projects much sooner than later.
After proper due diligence, we commit to prefund loans with our internal credit line, enabling closings in as little as 7 days. Unfortunately, many traditional crowdfunding platforms may take upwards of 60 days to raise funds for a project, if they're able to at all. Real estate developers know how important speed to close is when it comes to acquiring a property before it's sold to another party, that's why they appreciate Patch of Land's methods of prefunding their loans in order to secure their investment and allow them to waste little to no time before they can begin construction.
Accredited investors also realize a huge benefit when participating in Patch of Land’s prefunded real estate investments. In fact, once we place a prefunded investment opportunity on our crowdfunding platform, an Investor who participates in that peer to peer loan will begin to accrue interest on their contributions quickly -- 3 business days after an investment order is placed, and as soon as accreditation is verified. Once you are an active investor with funds on the platform, it begins to accrue immediately. This is opposed to traditional real estate crowdfunding portals which will hold your money in a dormant state until the loan is fully funded by the crowd. This alone is a big reason why Patch of Land's prefunding methods have become so popular and important for investors looking to diversify their portfolio today.
Patch of Land began offering prefunded real estate investment opportunities from day one because of the clear and apparent benefits it has for both borrowers and investors using its crowdfunding platform. Our successful prefunding strategy has already begun to set the standard by which other real estate debt crowdfunding platforms operate. In the end, we are proud to be trendsetters in the real estate crowdfunding industry and look forward to continuing to innovate and develop new ways of offering the best products and services to our customers.