Status: Repaid

Annual Return Term Remaining
10% -
Loan to ARV
64.6%
Investment Offering
$320,000
Min. Investment
$1,000
Term
6 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

This deal does not have an active offering

Bonita Springs, FL Rehab

REPEAT BORROWER

Updates

  • 01/04/21

    Fund That Flip is pleased to report the successful closing of the subject property!

    Fund That Flip has received proceeds from the title company and is processing an accounting reconciliation. Investor distributions will be issued shortly, followed by an investor summary.

  • 12/07/20

    Previously represented sale contract fell through due to buyer’s inspection report and estimated renovation estimates.

    Once the property was placed back on the market, multiple offers were immediately received. After a few days of negotiations, a new sales contract was executed. The buyer’s inspection period has since passed with no objections, and now proceeding towards closing in late December.

    Fund That Flip will monitor the closing process with the real estate broker and title company.

  • 11/06/20

    After a high amount of offer activity and negotiations, Fund That Flip has accepted a Purchase Agreement with an end of November closing date. The Purchase Agreement is fully executed, and buyers have deposited earnest money with the title company.

    Fund That Flip will monitor the closing process with the real estate broker and title company.

  • 10/20/20

    On October 14th, counsel informed that the Court entered the Order confirming the Foreclosure Sale results. Next step is executing the certificate of title document which will convey title from the borrower to Fund That Flip.

    Fund That Flip thoroughly discussed the marketing strategy options with a local real estate broker and has since signed a Listing Agreement. We anticipate receiving purchase offers shortly.

  • 09/23/20

    The foreclosure sale auction was conducted on September 10, 2020 with the property reverting to the lienholder, Fund That Flip. Counsel has filed the required documentation for the court to confirm the foreclosure sale, which will convey title from the borrower to Fund That Flip. Counsel anticipates the process will take approximately 30 days.

    Fund That Flip has engaged a local real estate broker who has secured the property and is currently preparing their marketing strategy proposal. We are encouraged that the broker has already received inquiries from prospective buyers while at the property and from their investor network.

    Investors will be updated as further developments occur.

  • 08/24/20

    After a 60-day Governor issued foreclosure moratorium due to the COVID-19 pandemic, a foreclosure auction sale date of September 10, 2020 has been scheduled. In preparation for the upcoming foreclosure sale, Fund That Flip is engaged with a local real estate broker to solicit buyer activity.

    Fund That Flip continues to engage with the developer and personal guarantor to pursue a mutually beneficial path exit. To date no agreement has been reached.

    We will provide additional investor updates as they become available.

  • 06/02/20

    On April 1, 2020, the Court entered a Memorandum and Order granting summary judgment in our favor. The Clerk, at the direction of the Court, entered said Judgments.

    We have been waiting on the court appointment of a special master to conduct the foreclosure sale. To date there has been no movement by the court to appoint the special master/auctioneer. As such, our counsel has filed a motion with a purposed special master (local attorney) to cry the sale. We are awaiting the courts approval on this motion. Once the special master is appointed, we are required to advertise for four (4) weeks prior to sale.

    In parallel, we have continued to engage the developer and personal guarantor to pursue a mutually beneficial path to exit prior to auction. We have not been able to reach any agreement.

    We will continue to pursue both strategies and provide as available.

  • 02/13/20

    Fund That Flip was informed through our foreclosure counsel that developers attorney had filed a Motion to Withdraw from the case. Recently, developers attorney has withdrawn the Motion. Due to delays, foreclosure counsel anticipate Hearing for Summary Judgment to occur before end of February.

    Fund That Flip will provide additional investor updates as they become available.

  • 01/13/20

    Fund That Flip has been informed by foreclosure counsel that Motion for Summary Judgment is expected to be filed the week of 1/13/2020.

  • 11/14/19

    The mediation was unsuccessful in reaching an agreement, but we have continued negotiations in attempt to find an acceptable compromise. In parallel, our counsel is drafting an affidavit in support of Fund That Flip's motion for summary judgment to progress legal remedy.

    We will provide updates as available.

  • 09/16/19

    Fund That Flip received confirmation that October 28, 2019 is confirmed for Mediation. We will post an update with the outcome and next steps after the mediation session.

  • 08/05/19

    Both Parties have agreed to attempt Mediation. The introductory email has been sent to Mediator for conflict check purposes and scheduling the same. We will provide an update once Mediation is scheduled.

  • 05/23/19

    We wanted to provide additional details given the dates provided by the courts in the prior update.

    - Prior to the Case Management Conference on May 9, 2019, the Parties were in agreement with many of the significant case management dates, except for the proposed deadline for Mediation. Given that the case was filed in January 2019, the Parties had proposed a deadline to file dispositive motions by July 31, 2019.

    - During the Case Management Conference, the Magistrate Judge advised the Parties that the proposed case management dates were too ambitious given the District Judge’s calendar and current docket. The Parties had nothing to do with the dates set forth in the Case Management and Scheduling Order. These were dates selected by the Court given the District Judge’s calendar and docket.

    - The Magistrate Judge reminded the Parties that the Magistrate Judge could preside over the case if all Parties were willing to consent. If the Magistrate Judge would preside over the case, the Parties could get more expeditious deadlines than what is currently set forth in the District Judge’s Case Management and Scheduling Order. Accordingly, we have a call into Defendants’ counsel requesting that Defendants join with the Plaintiff in requesting that the Magistrate Judge preside over this case. We are currently waiting to hear back from Defendants’ counsel.

    We will provide an update once we discuss with Defendants' counsel. Our goal here is to expedite this to the greatest extend we can. In the meantime, we will be returning $40,000 of the unused rehab funds to investors. Funds should hit your account within the next 5 business days.

  • 05/17/19

    Fund That Flip has continued to progress legal remedy on this matter. The Court conducted the Case Management Conference on May 9, 2019 with the Parties. During the Conference, the Court noted that the Parties suggested dates were too expeditious and that more protracted dates would be entered.

    The Court entered a Case Management and Scheduling Order on May 10, 2019. From review of the Order, below are key dates:
    04/15/2020 – Deadline to complete Mediation
    05/01/2020 – Deadline to file dispositive motions
    08/07/2020 – Deadline to file all other motions and Trial Briefs
    08/21/2020 – Final Pre-Trial Conference at 9:30 a.m.
    09/01/2020 – Trial

    We continue to be vocal that this needs to move quicker, and will advise if we are able to collapse the schedule. Updates will follow as available.

  • 04/15/19

    The monthly interest payment for March has not been received.

    A late fee has been assessed and will be distributed according to investor’s pro rata share of the investment, upon payoff.

    Fund That Flip will continue to monitor this situation closely and investors will be notified as further developments occur.

  • 03/20/19

    Fund That Flip has been in communication with the developer, however, progress towards a solution has stalled at this time.

    Concurrent with continued negotiation efforts, Fund That Flip has filed a Notice of Default for which the cure period has expired and we have also since filed a Foreclosure Complaint. The developer has been served notice and is filing an answer to the complaint with the court at this time.

    Fund That Flip will release further updates to investors regarding scheduling & preparation of the foreclosure hearing, as they come available.

  • 02/15/19

    The monthly interest payment for January has not yet been received.

    Fund That Flip is initiating communication with the developer to obtain payment for interest due.

    A late fee has been assessed and will be distributed according to investor’s pro rata share of the investment, upon payoff.

    Fund That Flip will continue to monitor this situation closely and investors will be notified as further developments occur.

  • 01/15/19

    The monthly interest payment for December has not yet been received.

    Fund That Flip is in communication with the Borrower to obtain payment for interest due.

    A late-fee has been assessed and will be paid out to investors upon payoff.

    Fund That Flip will continue to monitor this situation and investors will be notified as further developments occur.

  • 01/05/19

    After numerous conversations with the borrower and their refinance broker, Fund That Flip has filed the foreclosure complaint to further protect our interests. The length of time and complexities encountered on the refinance continued to mount, and at this time we believe legal remedy is our optimal course of action.

    We will monitor closely and provide updates as available.

  • 12/14/18

    The monthly interest payment for November has not yet been received.
    Fund That Flip is in communication with the Borrower to obtain payment for interest due.
    A late-fee has been assessed and will be paid out to investors upon payoff.
    Fund That Flip will continue to monitor this situation and investors will be notified as further developments occur.

  • 11/16/18

    The monthly interest payment for October has not yet been received.

    Fund That Flip is in communication with the Borrower to obtain payment for interest due.

    A late-fee has been assessed and will be paid out to investors upon payoff.

    Fund That Flip will continue to monitor this situation and investors will be notified as further developments occur.

  • 10/31/18

    Fund That Flip has received a refinance timeline from a reputable lender. They have represented that a Broker Price Opinion has been ordered and expected to be completed by 11/8. This would allow the lender to target a closing for the week of 11/12. While not binding, we now have a clearer path to this loan being repaid. We will continue to monitor this closely, while keeping all other options open to protect our interest.

  • 09/21/18

    Fund That Flip has issued a demand letter to the borrower to protect our interests. The borrower is representing that they intend to refinance and begun the process. We will monitor closely and provide updates as available.

  • 09/20/18

    The monthly interest payment for August has not yet been received.

    Fund That Flip is in communication with the Borrower to obtain payment for interest due.

    A late-fee has been assessed and will be paid out to investors upon payoff.

    Fund That Flip will continue to monitor this situation and investors will be notified as further developments occur.

  • 08/21/18

    The monthly interest payment for July has not yet been received.

    Fund That Flip is in communication with the Borrower to obtain payment for interest due.

    A late-fee has been assessed and will be paid out to investors upon payoff.

    Fund That Flip will continue to monitor this situation and investors will be notified as further developments occur.

  • 07/25/18

    Fund That Flip is pleased to inform you that the two past due interest payments mentioned in the last project update have been received and have been scheduled for payment to investors.

    You can expect to see these funds deposited in your bank account within the next 5-10 business days.

    Investors will be updated as further developments occur.

  • 07/17/18

    The borrower informed Fund That Flip that the project commencement was delayed due to the permitting process requiring original drawings of the building. This loan matured at the end of May, and we are in discussion with the borrower to ensure that prior to extending the loan there is a clear path forward with permits and executable plans.

    The redeveloper has obtained the required drawings and will be working with an expediter to quickly navigate through the permitting process. Permits are expected to be approved by mid-August. Fund That Flip has granted an extension per the terms of the Note to 8/29/18. This decesion was made conditional on all payments being made current as well as payment of the extension fee this week. Investors will receive a one-time fee of 50bp based on their pro rata ownership once we receive the Extension Fee from the borrower.

    Any further extension(s) will be conditional upon verified Permit Approval and re-verification of ARV, scope of work, and timeline of the repayment of the loan.

  • 07/16/18

    The monthly interest payment for June has not yet been received.

    Fund That Flip is in communication with the Borrower to obtain payment for interest due.

    A late-fee has been assessed and will be paid out to investors upon payoff.

    Fund That Flip will continue to monitor this situation and investors will be notified as further developments occur.

  • 06/15/18

    The monthly interest payment on this loan has not been received.

    Fund That Flip is in communication with the Borrower to obtain payment for interest due.

    A late-fee has been assessed and will be paid out to investors upon payoff.

    Fund That Flip will continue to monitor this situation and investors will be notified as further developments occur.

  • 05/18/18

    Fund That Flip is pleased to inform you that the past due interest payment on this loan has been received and is being scheduled for payment to investors.

    A late fee was assessed and will be paid to investors upon payoff.

    You can expect to see the funds deposited in your bank account within 10 business days.

    Investors will be updated as further developments occur.

  • 05/15/18

    The monthly interest payment on this loan has not been received.

    Fund That Flip is in communication with the Borrower to obtain payment for interest due.

    A late-fee has been assessed and will be paid out to investors upon payoff.

    Fund That Flip will continue to monitor this situation and investors will be notified as further developments occur.

  • 04/23/18

    Fund That Flip is pleased to inform you that the past due interest payment on this loan has been received and is being scheduled for payment to investors.

    A late fee was assessed and will be paid to investors upon payoff.

    You can expect to see the funds deposited in your bank account within 10 business days.

    Investors will be updated as further developments occur.

  • 04/16/18

    The monthly interest payment on this loan has not been received.

    Fund That Flip is in communication with the Borrower to obtain payment for interest due.

    A late-fee has been assessed and will be paid out to investors upon payoff.

    Fund That Flip will continue to monitor this situation and investors will be notified as further developments occur.

  • 03/21/18

    Fund That Flip regularly inspects each property to monitor progress.

    The demolition of the project is complete.

    No rehab funds have been released yet until additional work is performed.

    Fund That Flip is in communication with the developer about the impact on the project timeline.

    Investors will be updated as further developments occur.

  • 11/16/17

    Fund That Flip has ordered an inspection of this property to verify the current condition of the property.

    Investors will be updated as further developments occur.

Investment Summary


Type Rehab
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee

Fund That Flip closed the loan on this property on November 29, 2017. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $238,909 to the developer at closing for a loan to purchase of 82.4%. Fund That Flip is holding back $8,791 for 3 months of pre-paid interest.

The construction budget is $155,850. Fund That Flip will finance $64,900 of the total construction budget. Fund That Flip disburses construction funds based on verification of work performed, as determined by an independent 3rd party inspection firm. Fund That Flip reviews each inspection report and releases funds based on the percentage of completion of the project. Fund That Flip expects to make 5 construction draws, but may schedule additional inspections as needed. The final draw will be released after all work is verified to be complete.

Over the course of the project, the developer will contribute an estimated $158,232 in equity, including an estimated $51,091 at the time of closing. The total loan-to-ARV is 64.6%. There is a 3 month pre-payment penalty, meaning investors will earn interest through February 28, 2018, even if paid back earlier. The term of the underlying loan is 6 months with an option to extend for an additional 3 months. Should Fund That Flip choose to grant the extension, investors will earn an additional one-time 0.5% fee on their investment.

Use of Proceeds


  Cost Use of Proceeds % of Loan
At close $290,000 $238,909 74.7%
Purch. $290,000 $238,909 74.7%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $155,850 $64,900 20.3%
Prepaid Int $8,791 $8,791 2.7%
Closing $7,400 $7,400 2.3%
Total $462,041 $320,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $290,000 $238,909 $51,091 82.4%
Purch. $290,000 $238,909 $51,091 82.4%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $155,850 $64,900 $90,950 41.6%
Prepaid Int $8,791 $0 $8,791 0.0%
Closing $7,400 $7,400 $7,400 100.0%
Total $462,041 $311,209 $158,232 67.4%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $290,000 $238,909 82.4%
Appraised ARV: $535,000 $320,000 59.8%
FTF Valuation: $495,000 $320,000 64.6%

Fund That Flip's Internal Underwriters use industry standard valuation software, independent real estate data, and internal proprietary modeling to estimate the expected After Repair Value of the property.

Fund That Flip develops an internal valuation on all projects using an automated valuation model (AVM), which estimates real estate property valuations using mathematical modeling, combined with a database of real estate information for comparable properties. The comparable properties in the analysis are within 0.38 miles of the subject, have a similar number of bedrooms, bathrooms, and square footage, and are of similar home style.

The internal valuation of $495,000 on the property is supported by the following data points:
• 3 comparable properties have recently sold between $380,000 and $450,000.
• Price per square foot of these comparable properties ranges from $236 to $245.
• Our internal valuation yielded a price per square foot of $257.

Fund That Flip supplemented the internal valuation with an appraisal. The appraisal indicated an ARV of $535,000 for the property.

Fund That Flip used the FTF internal valuation when making the final decision to fund this project.

About the Property


Details

Bedrooms 3
Full Bathrooms 3
Year Built 1980
Square Footage 1925 SF
Garage Spaces 1
Purchase Price $290,000
Estimated Rehab Budget $155,850
ARV $495,000
Developer Equity $158,232 plus closing & holding costs

Market Overview


• Bonita Springs is a city in Lee County, FL

Bonita Springs is a city in southwest Florida. It is situated between Fort Myers to the north and Naples to the south. It is situated between Fort Myers to the north and Naples to the south. Bonita Springs is known for its Gulf Coast beaches and parks, including secluded Little Hickory Island Beach Park and Bonita Beach Park, with its sand dunes. Nearby, to the north, is Lovers Key State Park, a popular swimming and kayaking spot. Made up of 4 barrier islands, the park is home to manatees and dolphins. Everglades Wonder Gardens is also nearby and features orchids, parrots and reptiles.

The subject property is:
    • 2 miles to Bonita Beach Park
    • 24 miles to Fort Myers, FL
    • 14 miles to Naples, FL

• Retail Sales Sold: 98%
• Short Sales Sold: 0%
• REO Sold: 2%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on November 29, 2017. Your investment will begin accruing interest the day it clears escrow.

The borrower will be building an 800 square foot addition on the back of this property as well as putting an in-ground pool in the backyard. Construction will begin shortly after loan closing and includes the following:
• Demolition
• Concrete & Masonry
• Electrical
• Windows & Doors
• Drywall
• Interior & Exterior Paint
• Flooring
• New Appliances
• Cabinets & Countertops
• New Pool

The full statement of work is available below.

Risk


Having a thorough understanding of the risks of each investment in your portfolio is important prior to making an investment. Fund That Flip encourages you to do full due diligence on each deal and consult your investment, tax and legal advisors prior to investing.

Risk:
The market value of the property drops significantly removing opportunity for the developer to make a profit.

Mitigating Factor:
The property is located in a stable market and was purchased at a discount providing downside protection in a falling-price environment.

Risk:
The developer chooses not to complete the project.

Mitigating Factors:
• The developer has considerable equity in the project and the LTV on an ARV basis is 64.6%.
• Fund That Flip holds a first position lien on the property and the partner has personally guaranteed the loan.

Risk:
The developer is unable to complete the project in the allotted 6 month period.

Mitigating Factor:
Fund That Flip has built in a 3 month optional extension, approved only if project is advancing at a satisfactory pace. Extension corresponds with an additional fee to be shared on a pro-rata basis with investors.

A more complete list of risks for this investment is provided in the Investor Offering Materials and should be read and reviewed with your investment, tax and legal advisors.