Status: Repaid

Annual Return Term Remaining
9% -
Loan to ARV
47.9%
Investment Offering
$2,505,000
Min. Investment
$5,000
Term
12 mo.
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

Updates

  • 07/28/20

    Fund That Flip is pleased to communicate that this project has been paid off via a refinance. The payoff has been received and is being processed. Distributions to our investors will be paid in the next few business days.

    To support the developer in a difficult and costly refinance, we came to a mutually beneficial agreement that kept pressure on the borrower to refinance this loan and kept costs manageable to allow the refinance to occur. The agreement was that another extension would not be granted, but if the developer repaid the loan within 90 days and all normal interest payments were paid on time, Fund That Flip committed to waiving accrued Penalty Interest from that maturity date until payoff. This provided our investors with the greatest leverage for a full return of principal, payment of all due normal interest, and obtaining 2 extension fee payments (depending on accrual date) over the course of the loan.

    We thank you for your investment with us, and we wish you the best on your next Investment. If you have any questions, please feel free to contact one of our customer success team members.

  • 06/01/20

    Fund That Flip has been in regular communication with the developer about the current status of the project.

    They have represented experiencing delays due to COVID-19 and have adjusted their target completion timeline from August to October.

    We are currently encouraging and supporting the developer as they work on a refinance of the project.

    Dialogues with the developer are ongoing and investors will be updated as further developments occur.

  • 04/02/20

    Fund That Flip has ordered an inspection of this property to monitor the progress.

    Based on the Inspection Report this project is at 48% completion.

    Fund That Flip has processed a construction draw to reimburse developer expenses.

    Investors will be notified as further developments occur.

  • 03/03/20

    Fund That Flip has ordered an inspection of this property to monitor the progress.

    Based on the Inspection Report this project is at 45% completion.

    Fund That Flip has processed a construction draw to reimburse developer expenses.

    Investors will be notified as further developments occur.

  • 03/03/20

    The updated maturity date for this loan is 5/23/2020.

    The developer has requested a loan extension to finalize the refinance and payoff of the project.

    After communication with the developer about the revised timeline for the refinance, Fund That Flip has approved the customer's request.

    The maturity date will be extended an additional three months.

    Investors will receive their share of collected extension fees in the next 3-5 business days.

  • 01/17/20

    Fund That Flip has ordered an inspection of this property to monitor the progress.

    Based on the Inspection Report this project is at 38% completion.

    Fund That Flip has processed a construction draw to reimburse developer expenses.

    Investors will be notified as further developments occur.

  • 12/19/19

    Fund That Flip has ordered an inspection of this property to monitor the progress.

    Based on the Inspection Report this project is at 30% completion.

    Fund That Flip has processed a construction draw to reimburse developer expenses.

    Investors will be notified as further developments occur.

  • 12/02/19

    Fund That Flip has ordered an inspection of this property to monitor the progress.

    Based on the Inspection Report this project is at 21% completion.

    Fund That Flip has processed a construction draw to reimburse developer expenses.

    Investors will be notified as further developments occur.

  • 11/08/19

    Fund That Flip has ordered an inspection of this property to monitor the progress.

    Based on the Inspection Report this project is at 16% completion.

    Fund That Flip has processed a construction draw to reimburse developer expenses.

    Investors will be notified as further developments occur.

  • 10/03/19

    Fund That Flip has been in communication with the developer about the current status of the project.

    The developer has represented that they are currently in the foundation stage of construction.

    They plan on requesting a draw in the coming weeks.

    Investors will continue to be updated as further developments occur.

  • 08/02/19

    Fund That Flip has ordered an inspection of this property to monitor the progress.

    Based on the Inspection Report this project is at 12% completion.

    Fund That Flip has processed a construction draw to reimburse developer expenses.

    Investors will be notified as further developments occur.

  • 07/18/19

    Fund That Flip has been in communication with the developer about the current status of the project.

    The developer has represented that they have finished the demolition of the project and has requested a draw for next week.

    At that time, Fund That Flip will reimburse the developer for construction expenses.

    Investors will continue to be updated as further developments occur.

  • 05/15/19

    The updated maturity date for this loan is 02/23/2020.

    The developer has requested a loan extension to finalize the completion of the rehab on the project.

    After communication with the developer about the revised timeline for the project, Fund That Flip has approved the customer's request.

    The maturity date will be extended an additional six months.

    The developer has the option to extend an additional six months after the first extension period is over. Fund That Flip will review the extension request at that time if the developer wishes to exercise the option.

    Investors will receive their share of collected extension fees at time of payoff.

  • 03/06/19

    Fund That Flip has been in communication with the developer about the current status of the project.

    The developer has been working with the city in order to obtain permits for construction.

    The developer plans to obtain these permits within the coming weeks, and shortly after begin construction and request their first draw.

    Investors will continue to be updated as further developments occur.

Use of Proceeds


  Cost Use of Proceeds % of Loan
At close $1,335,000 $946,632 37.8%
Purch. $1,335,000 $946,632 37.8%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $1,740,500 $1,426,679 57.0%
Prepaid Int $82,851 $82,851 3.3%
Closing $48,838 $48,838 1.9%
Total $3,207,188 $2,505,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $1,335,000 $946,632 $388,368 70.9%
Purch. $1,335,000 $946,632 $388,368 70.9%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $1,740,500 $1,426,679 $313,821 82.0%
Prepaid Int $82,851 $0 $82,851 0.0%
Closing $48,838 $48,838 $48,838 100.0%
Total $3,207,188 $2,422,149 $833,877 75.5%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $1,335,000 $946,632 70.9%
Appraised ARV: $4,975,000 $2,505,000 50.4%
FTF Valuation: $5,235,000 $2,505,000 47.9%

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 1.15 miles of the subject, have a similar number of bedrooms, bathrooms, and square footage, and are of similar home style.

The internal valuation of $5,235,000 on the property is supported by the following data points:
• Unit #1L:
    • $825,000 FTF ARV
    • 3 comparable properties have recently sold between $649,000 and $895,000.
    • These comparable properties are within 1.15 miles of the subject property.
    • Price per square foot of these comparable properties ranges from $677 to $990.
    • Our internal valuation yielded a price per square foot of $732.
• Unit #1R:
    • $650,000 FTF ARV
    • 3 comparable properties have recently sold between $660,000 and $734,000.
    • These comparable properties are within 0.93 miles of the subject property.
    • Price per square foot of these comparable properties ranges from $569to $659.
    • Our internal valuation yielded a price per square foot of $709.
• Unit #2L:
    • $700,000 FTF ARV
    • 6 comparable properties have recently sold between $660,844 and $992,793.
    • These comparable properties are within 1.01 miles of the subject property.
    • Price per square foot of these comparable properties ranges from $707 to $1,016.
    • Our internal valuation yielded a price per square foot of $958.
• Unit #2R:
    • $485,000 FTF ARV
    • 3 comparable properties have recently sold between $520,000 and $595,000.
    • These comparable properties are within 0.88 miles of the subject property.
    • Price per square foot of these comparable properties ranges from $913 to $1,010.
    • Our internal valuation yielded a price per square foot of $976.
• Unit #3L:
    • $700,000 FTF ARV
    • 6 comparable properties have recently sold between $677,136 and $992,793.
    • These comparable properties are within 1.01 miles of the subject property.
    • Price per square foot of these comparable properties ranges from $794 to $969.
    • Our internal valuation yielded a price per square foot of $958.
• Unit #3R:
    • $500,000 FTF ARV
    • 3 comparable properties have recently sold between $520,000 and $595,000.
    • These comparable properties are within 0.88 miles of the subject property.
    • Price per square foot of these comparable properties ranges from $913to $1,010.
    • Our internal valuation yielded a price per square foot of $1,006.
• Unit #4L:
    • $850,000 FTF ARV
    • 5 comparable properties have recently sold between $697,501 and $920,000.
    • These comparable properties are within 1.04 miles of the subject property.
    • Price per square foot of these comparable properties ranges from $787 to $1,030.
    • Our internal valuation yielded a price per square foot of $910.
• Unit #4R:
    • $525,000 FTF ARV
    • 6 comparable properties have recently sold between $430,950 and $597,000.
    • These comparable properties are within 1.04 miles of the subject property.
    • Price per square foot of these comparable properties ranges from $866 to $1,010.
    • Our internal valuation yielded a price per square foot of $1,056.

The total ARV of all condo units to be built is $5,235,000.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $4,975,000 for the property. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation.

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

About the Property


Details

Bedrooms 12
Full Bathrooms 9
Year Built 2018
Square Footage 5115 SF
Purchase Price $1,335,000
Estimated Rehab Budget $1,740,500
ARV $5,235,000
Current Appraised Value $1,910,000
Developer Equity $833,877 plus closing & holding costs

Market Overview


• Brooklyn is a borough in New York City, NY

Brooklyn sits on the western end of Long Island. It is the most populous of New York City's 5 boroughs. The iconic Brooklyn Bridge, built in 1883, connects it to Manhattan. Neighborhoods range from high-end DUMBO (between Manhattan and Brooklyn bridges); to Williamsburg, a hotbed of indie music, art, and nightlife; to beachfront Coney Island and its amusement parks. Leafy, row house–filled districts include Brooklyn Heights and Park Slope.

The subject property sits in the Bushwick neighborhood of Brooklyn. Bushwick is a working-class neighborhood in the northern part of Brooklyn. It shares a border with Ridgewood, Queens, to the northeast, and is bounded by the Brooklyn neighborhoods of Williamsburg to the northwest; East New York and the cemeteries of Highland Park to the southeast; Brownsville to the south; and Bedford-Stuyvesant to the southwest.

The subject property is:
    • 6 miles to Midtown Manhattan, a 35 minute train ride
    • Less than 0.5 miles to the M line subway station which leads straight to Manhattan
    • 2 miles to Williamsburg

• Retail Sales Sold: 96%
• Short Sales Sold: 0%
• REO Sold: 4%

  • data acquired from internal sources.

Project Strategy


The developers bought this property with financing from Fund That Flip on August 23, 2018. Your investment will begin accruing interest the day it clears escrow.

Each condo unit will be different. See each units specifics below:
• Unit #1L: 2 beds, 1.5 baths, 1,127 square feet
    • This unit will have finished cellar space and a private garden
• Unit #1R: 1 bed, 1 bath, 917 square feet
    • This unit will have finished cellar space and a private deck & garden
• Unit #2L: 2 beds, 1 bath, 731 square feet
• Unit #2R: 1 bed, 1 bath, 497 square feet
• Unit #3L: 2 beds, 1 bath, 731 square feet
    • This unit will have a 199 square foot terrace
• Unit #3R: 1 bed, 1 bath, 497 square feet
    • This unit will have a 274 square foot terrace
• Unit #4L: 2 beds, 2 baths, 934 square feet
    • This will be a duplexed unit with 2 terraces (323 square feet & 273 square feet)
• Unit #4R: 1 bed, 1 bath, 497 square feet
    • This unit will have a 274 square foot terrace and a 313 square foot roof deck

Construction will begin shortly after loan closing and includes the following:
• Demolition of Current Structure
• Foundation
• Roofing
• Plumbing
• HVAC
• Electrical
• Framing & Drywall
• Engineered Hardwood Flooring
• Appliances
• Custom Cabinets & Stone Countertops

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 47.9%.
• 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 12 month period.

Mitigating Factor:
Fund That Flip has built in a 6 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.