Patch of Land review

Accredited investors with at least $5,000 have access to both residential and commercial property.

Patch of Land is a peer-to-peer real estate lending marketplace that matches accredited investors with operators who need funding to run the real estate project. It offers a solid mix of properties that span the country, but you have to be an accredited investor to qualify.

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Annual fee

9% to 11%

Average return


Option trade fee$0
Asset typesReal estate
Account typesOther
Average return9% to 11%
Minimum deposit$5,000

How does Patch of Land work?

Patch of Land specializes in pre-vetted residential properties in need of rehab, though it also offers some commercial properties and small apartment buildings. It only invests in properties that meet its underwriting guidelines and show strong potential for return. The residential investments are for loans to fix and flip houses, while the commercial investments are mainly equity purchases to buy and hold.

Its online platform allows you to digitally sign the proper contracts and agreements so you can start investing immediately. It also gives timely updates on the project by working closely with the developer, including email or text updates, videos, plans and other assets.

Patch of Land claims to offer high interest rates because borrowers dealing with short term loans are typically paying even higher interest. At either the loan’s maturity date or full repayment from the borrower, you will receive a balloon payment of the remaining principal and interest.

Who is Patch of Land best for?

Patch of Land has a diverse mix of properties, potentially making it best for:

  • Active investors. Patch of Land’s mix of residential and commercial properties allows investors to fully customize their portfolios.
  • Newly accredited investors. The low minimum investment amount allows newcomers to build their portfolio without breaking the bank.
  • Investors with a diverse portfolio. For investors with a heavy dose of commercial properties, Patch of Land’s large amount of residential properties allows you to diversify.
  • Non-US residents. Patch of Land is one of just a few real estate investment platforms that are open to non-US residents, though there are limitations.

What’s an accredited investor?

To be considered an accredited investor, you must meet one of the following criteria set by the Securities and Exchange Commission (SEC):

  • You earned over $200,000 in each of the last two years and expect the same for this year.
  • You and your spouse earned over $300,000 in each of the last two years and expect the same for this year.
  • You have a net worth of at least $1 million, alone or together with your spouse, excluding the value of your primary residence.

Pricing and fees

Patch of Land states that it may charge investors a fee of up to 3% of the loan amount to help cover administrative costs. This is on par with what most of its competitors charge, whether it be a platform fee for property management or fees paid to directly to property sponsors.

Its $5,000 minimum investment isn’t nearly as steep as the $25,000 required of platforms like RealCrowd, CrowdStreet and ArborCrowd. But there are platforms that offer minimums lower than Patch of Land — Groundfloor allows investors to get started with just $10.

Minimum investment$5,000
Average holding period12 months
Patch of Land investor feeUp to 3% of the loan amount

Pros and cons


  • Transparent portfolio. Patch of Land vets and funds deals beforehand, allowing you to do research on which properties you would like to invest in and review a borrower’s past projects.
  • Short-term investments. Patch of Land mainly does deals between 12 and 18 months, which are generally considered safer real estate investments.
  • Strong returns. Patch of Land cites an average rate of return between 9% and 11%, though some properties have returned 12%.
  • Low minimum investment. The minimum amount to invest in a property is $5,000, though this number can be reduced to $1,000 for certain properties.
  • Prefunded deals. All deals are prefunded entirely by Patch of Land, which allows you to begin earning interest immediately after making your investment.
  • Properties nationwide. Patch of Land’s large portfolio spans the nation, giving you plenty of choices of how and where to invest.


  • High fees. Fees average between 0% and 3%, which can cut into your return on investment.
  • Accredited investors only. While some competitor sites are starting to open their investments to everyone, Patch of Land remains limited to accredited investors only.

Compare with other real estate investing platforms

1 - 4 of 4
Name Product Eligible investors Available asset types Annual fee Average return
Real estate, Other, Art
7% to 15%
Accredited only
Real estate
Real estate investing platform that gives investors direct access to individual commercial real estate investment opportunities
Real estate
Invest directly in commercial real estate through this crowdfunding platform. But you’ll pay variable fees depending on the investment type.
Real estate
5.21% to 6.42%

Compare up to 4 providers

Patch of Land reviews and complaints

Patch of Land investor reviews are few and far between. The platform is accredited with the Better Business Bureau and earns an A+ rating, but most of its BBB reviews and complaints come from borrowers, not investors. As of October 2020, the platform also boasts a TrustScore of 3.7 out of 5, but again — most of its Trustpilot reviews have been left by borrowers.

We only unearthed a few reviews from Patch of Land investors. One investor complained of a property foreclosure that left them with a diminished return. The other mentioned inconsistent timing with disbursement payouts. But overall, the platform appears to maintain a positive reputation among borrowers and has no registered complaints on the Consumer Financial Protection Bureau.

How do I get started?

To get started, you’ll first need to be an accredited investor. Then:

  1. Visit the Patch of Land website and click Sign Up on the top menu
  2. Select Sign Up As An Investor in the pop-up menu
  3. Enter your contact information and click Submit
  4. After signing up, you can immediately browse and choose projects to invest in
  5. Pick a project and click I’m Ready to Invest
  6. Review and sign the investor agreement electronically
  7. Fund your investment via automatic bank draft or wire transfer


You’ll need to meet the following eligibility requirements:

  • At least 18 years of age
  • Be an accredited investor

Required information

During your application, you’ll need to provide the following information:

  • First and last name
  • Email address
  • Phone number

I’ve signed up with Patch of Land. Now what?

After signing up, you can dive right in:

  • Select a property to invest in. Though Patch of Land has a large portfolio of properties, there might be a limited number of new ones to invest in.
  • Do your research. Take advantage of Patch of Land’s information on its properties and look at the borrower’s past project history.
  • Invest your money. Most of Patch of Land’s investments are for 12 months. After you select a property to invest in, you can monitor its progress and receive updates.
  • Check the tax implications. Speak with a tax professional or read your state’s tax laws to fully understand how trading affects your taxes.

Patch of Land’s customer service

You can contact Patch of Land either by phone or email.

  • Phone: 888-959-1465
  • Email:
    • Borrowers and real estate professionals:
    • Investors and financial professionals:
    • Technical support:

Bottom line

Patch of Land has a mix of residential and commercial short-term investments. Its underwriting process is stringent and is demonstrated by its prefunded deals. But only accredited investors can apply.

Before deciding on a real estate investment platform, be sure to compare your options.

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