Rental Property Investor

A U.S. Marine Veteran Finds A Powerful Ally With Patch.

The Situation

While deployed in Afghanistan, 32-year-old Marine Corps Sergeant Benny J. came up with “20 by 40” — his goal of owning twenty investment properties by the time he reached the age of forty.

After leaving the service he returned to Jacksonville, North Carolina, began working as an aviation mechanic, and continued to work toward his goal. He’d bought his first property in 2005 and was making progress.

“One bank acted as if portfolio loans didn’t exist,” says Benny. “With others, even though I had the down payment and a credit score over 700, they wouldn’t loan me the money.”

Benny J. with one of his rental properties in Jacksonville, North Carolina.

But as he reached 10 properties, traditional lenders began to view him as possibly being overextended. Securing funding became more difficult. The challenges became even greater after he left the service and attempted to get a portfolio loan to buy six properties.

“One bank acted as if portfolio loans didn’t exist,” says Benny. “With others, even though I had the down payment and a credit score over 700, they wouldn’t loan me the money.”

Eventually, Benny was able to get a loan against his stock portfolio, but it prevented him from buying or selling any stocks. He also secured a business loan to buy properties, but it had a high interest rate and a balloon payment at the end. That’s when he discovered Patch Lending.

Patch was different, they didn’t base loans on my debt-to-income ratio.

Benny J.

The Solution

Patch was able to offer Benny a Portfolio Loan that covered multiple properties. Benny’s income wasn’t the deciding factor; instead, Patch based the approval of his loan in part on the debt service coverage ratio (DSCR). Since the cashflow of his rental properties exceeded the amount of the loan payment, it was a sound decision. The interest rate was competitive, and there was no balloon payment waiting at the end. In addition, the 30-year term of the loan lowered Benny’s monthly payments — and boosted his monthly cashflow. 

In short, Patch was able to help Benny get out of an unfavorable loan and generate instant savings. A few loans later, Benny is sold on Patch. 

“Some lenders wanted me to track a year’s worth of money that I put into an account for my daughters’ discretionary income. Another lender wanted me to sell my stock and put the money in a savings account that paid next to no interest. That’s not how Patch works.” 

In addition to the terms and approach, Benny was also impressed with the customer service he received.

“I never had to chase after Marc,” Benny says, referring to his Patch Loan Officer. “He’s patient and always there when I need him. He almost always calls back by end of the day.”

“So far, I’ve recommended Patch to three people,” he continues. “They’re fast, they’re friendly, and the amount of requirements are less than what other companies have.”

Benny is well on his way to achieving his investment goals. And Patch is committed to helping this Marine accomplish his mission, one house at a time.

Investor Profile

Benny J.

Market: Jacksonville, North Carolina

Investment strategy: Set out to buy and flip, but switched to buy and hold. Homes within his market that ideally offer minimal renovation, have buyers in place, and provide 10% annual return.

Investment goals: To accumulate 20 properties by the age of 40, and to supplement his retirement income.

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