Status: Repaid

Annual Return Term Remaining
9.5% -
Loan to ARV
58.2%
Investment Offering
$1,135,000
Min. Investment
$5,000
Term
12 mo.
Guarantee
Personal Guarantee
Underlying Security
1st Position

This deal does not have an active offering

Updates

  • 11/16/20

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 11/12/2020.

    You will receive the following payments related to this payoff: September 2020 Partial Penalty Interest, October 2020 Normal Interest, October 2020 Penalty Interest, November 2020 Partial Normal Interest, November 2020 Partial Penalty Interest, 1 Extension Fee, 3 Late Fees, and Principal.

    You can expect to see these funds deposited in your bank account within 5-8 business days. In addition, these payments will be view-able from your investor dashboard.

  • 11/10/20

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

    The closing attorney reached out to discuss the closing and payoff form has been provided by Fund That Flip. They are targeting to close on this by the end of this month.

    Investors will continue to be updated as further developments occur.

  • 10/20/20

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

    You can expect to see the funds deposited in your account within 3-5 business days.

    Investors will be updated as further developments occur.

  • 10/19/20

    The monthly interest payment for September has not yet 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.

  • 09/24/20

    Fund That Flip is currently working with the developer to get a better understanding of timeline to exit and refinance.

    Both Fund That Flip and the developer are aware of the maturity and are collaborating to find the best solution and path forward.

    Timely interest payments continue to be made on a monthly basis.

    Investors will continue to be updated as further developments occur.

  • 08/21/20

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

    The developer has represented that they are targeting to finish the rehab around the time of maturity. Fund That Flip is currently working to better understand the timeline to make an informed decision on next steps.

    Timely interest payments continue to be made on a monthly basis.

    Investors will continue to be updated as further developments occur.

  • 06/24/20

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

    The developer has represented that they are continuing to progress on the rehab and plan to request a construction draw in the coming weeks.

    Timely interest payments continue to be made on a monthly basis.

    Investors will continue to be updated as further developments occur.

  • 05/12/20

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

    Based on the Inspection Report this project is at 59% completion.

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

    Investors will be notified as further developments occur.

  • 04/01/20

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

    Based on the Inspection Report this project is at 47% completion.

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

    Investors will be notified as further developments occur.

  • 04/01/20

    The developer has progressed to 47% complete on the project.

    They requested a loan extension to complete and sell the property.

    Fund That Flip reviewed the rehab progression with the developer and believes the revised timeline and plan were reasonable and present the best path forward.

    The updated maturity date for this loan is 9/19/2020

    The six-month extension does take the timeline impacts of COVID-19 into consideration.

    In an effort to encourage a quicker exit, the extension fee will be waived if the developer repays the loan within the first three months of the extension period.

    We believe that supporting good borrowers through this unprecedented time is

  • 02/24/20

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

    Based on the Inspection Report this project is at 31% completion.

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

    Investors will be notified as further developments occur.

  • 01/07/20

    The updated maturity date for this loan is 3/19/2020.

    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.

  • 12/11/19

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

    The developer is currently looking at multiple refinance options to exit this loan.

    Timely interest payments continue to be made on a monthly basis.

    Investors will continue to be updated as further developments occur.

  • 10/08/19

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

    Based on the Inspection Report this project is at 11% completion.

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

    Investors will be notified as further developments occur.

  • 09/25/19

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

    The developer has represented that work on the exterior has begun on the project.

    We are currently in early discussions of an extension on the loan.

    Investors will continue to be updated as further developments occur.

  • 09/19/19

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

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

    Investors will be updated as further developments occur.

  • 09/17/19

    The monthly interest payment for August has not yet 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.

  • 07/18/19

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

    All of the units will be vacant by the end of next month and the rehab in those units will start in September.

    Fund That Flip is anticipating an extension to be requested and is prepared to review the request to secure the most successful exit path for both the developer and investors.

    Investors will continue to be updated as further developments occur.

  • 05/07/19

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

    The developer has represented that they plan on finishing the exterior portion of the rehab by the beginning of next month.

    The vacant interior units have been prepped for construction which will begin once the exterior is complete.

    Investors will continue to be updated as further developments occur.

  • 03/06/19

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

    The developer has expressed they they have begun the demolition on two of the units, and plan to begin working on the exterior next.

    The developer has represented that they will be taking a draw in the coming weeks.

    Investors will continue to be updated as further developments occur.

Use of Proceeds


  Cost Use of Proceeds % of Loan
At close $850,000 $779,906 68.7%
Purch. $850,000 $779,906 68.7%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $350,000 $291,558 25.7%
Prepaid Int $39,835 $39,835 3.5%
Closing $23,700 $23,700 2.1%
Total $1,263,535 $1,135,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $850,000 $779,906 $70,094 91.8%
Purch. $850,000 $779,906 $70,094 91.8%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $350,000 $291,558 $58,442 83.3%
Prepaid Int $39,835 $0 $39,835 0.0%
Closing $23,700 $23,700 $23,700 100.0%
Total $1,263,535 $1,095,165 $192,071 86.7%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $850,000 $779,906 91.8%
Appraised ARV: $2,100,000 $1,135,000 54.0%
FTF Valuation: $1,950,000 $1,135,000 58.2%

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

The internal valuation of $1,950,000 on the property is supported by the following data points:
• The FTF ARV on each condo unit is $325,000.
    • 6 comparable properties have recently sold between $346,000 and $455,000.
    • Price per square foot of these comparable properties ranges from $286 to $433.
    • Our internal valuation yielded a price per square foot of $335 on the two first floor units and $327 on the 4 other units.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $2,100,000 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 3
Full Bathrooms 1
Year Built 1900
Purchase Price $850,000
Estimated Rehab Budget $350,000
ARV $1,950,000
Current Appraised Value $1,255,000
Developer Equity $192,071 plus closing & holding costs

Market Overview


• Dorchester is a city in Suffolk County, MA

The subject property is:
    • 4 miles to Downtown Boston
    • Less than 0.5 miles to the nearest MBTA train station
    • 2 miles to the University of Massachussetts Boston

• Retail Sales Sold: 97%
• Short Sales Sold: 1%
• REO Sold: 2%

  • data acquired from internal sources.

Project Strategy


The developer previously purchased this property. They obtained financing from Fund That Flip on December 19, 2018. Your Investment will begin accruing interest the day it clears escrow.

The subject property is currently a 6-unit apartment building and will be converted into 6 condos that the developer will sell individually.

Each condo will be 3 bedrooms and 1 bathroom. The square footages for each unit are as follows:
• Unit 1 (First Floor): 971 square feet
• Unit 2 (First Floor): 971 square feet
• Unit 3 (Second Floor): 993 square feet
• Unit 4 (Second Floor): 993 square feet
• Unit 5 (Third Floor): 993 square feet
• Unit 6 (Third Floor): 993 square feet

Construction will begin shortly after loan closing and includes the following:
• Roofing
• Plumbing
• Electrical
• Flooring
• Interior Paint
• Windows
• Appliances
• Cabinet & Countertops
• Exterior Siding
• Landscaping

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 58.2%.
• 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 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.