Status: Repaid

Annual Return Term Remaining
9% -
Loan to ARV
63.3%
Investment Offering
$750,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Portfolio
Guarantee
Personal Guarantee
Underlying Security
1st Position

This deal does not have an active offering

Indianapolis, IN Rehab & New Construction

REPEAT BORROWER

Updates

  • 07/16/20

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 07/10/2020.

    You will receive the following payments related to this payoff: June 2020 Normal Interest, July 2020 Partial Normal Interest, 1 Extension Fee, 1 Late Fee, 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.

  • 05/28/20

    Fund That Flip is pleased to inform you that the loan has completed a second partial payoff. The partial payoff date is 05/27/2020.

    The developer has sold a second property in the portfolio and remitted $291,139.24 to Fund That Flip to complete a partial payoff.

    Investors will receive a return of principal equal to 58.23% of their current holding in this offering. Investor holdings have also been updated to reflect these partial repayments.

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

    In addition, Fund That Flip will remain in close contact with the developer while they work to sell the final property and make a full principal repayment.

  • 04/24/20

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

    Based on the Inspection Report 1134 Laurel is at 100% completion.

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

    Investors will be notified as further developments occur.

  • 04/21/20

    The developer has progressed to 100% complete on the project. Fund That Flip has verified this with an inspection.

    The developer requested a loan extension to sell the properties.

    Fund That Flip reviewed the request and believes the revised timeline and plan were reasonable and present the best path forward.

    The updated maturity date for this loan is 10/14/2020.

    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 not only the right thing to do, but also provides higher probability of successful exit.

  • 03/18/20

    The updated maturity date for this loan is 4/14/2020.

    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 three months.

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

  • 01/27/20

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

    The developer has requested an extension in order to complete and sell the remaining properties in the portfolio.

    Fund That Flip is currently reviewing this request.

    Investors will continue to be updated as further developments occur.

  • 12/13/19

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

    Based on the Inspection Report 1134 Laurel is at 96% completion.

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

    Investors will be notified as further developments occur.

  • 10/30/19

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

    Based on the Inspection Report 1134 Laurel is at 82% completion.

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

    Investors will be notified as further developments occur.

  • 10/04/19

    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.

  • 09/25/19

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

    Based on the Inspection Report 1134 Laurel is at 60% completion.

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

    Investors will be notified 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.

  • 07/29/19

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

    Based on the Inspection Report 818 Olive St is at 100% completion and 1134 Laurel is at 46% completion.

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

    Investors will be notified as further developments occur.

  • 07/03/19

    Fund That Flip is pleased to inform you that the loan has been partially paid off. The partial payoff date is 06/27/2019.

    The developer has sold one of the three properties in the portfolio and remitted $250,000 to Fund That Flip to complete a partial payoff.

    Investors will receive a return of principal equal to 45.04% of their original holding in this offering. Investor holdings have also been updated to reflect these partial repayments.

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

    In addition, Fund That Flip will remain in close contact with the developer while they continue to progress on the rehab of the remaining two properties and see them both to sale.

  • 06/04/19

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

    Based on the Inspection Report 818 Olive St is at 74% completion and 1134 Laurel is at 34% completion.

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

    Investors will be notified as further developments occur.

  • 05/01/19

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

    Based on the Inspection Report 818 Olive St is at 64% completion.

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

    Investors will be notified as further developments occur.

  • 02/22/19

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

    Based on the Inspection Report 818 Olive is at 60% completion and 1310 Olive is at 72% completion.

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

    Investors will be notified as further developments occur.

Investment Summary


Type New Construction
Underlying Asset Portfolio
Underlying Security 1st Position
Guarantee Personal Guarantee

The project at 1310 Olive Street is a rehab and the projects at 1134 Laurel Street and 818 Olive Street are both new construction. The construction on all 3 properties has already begun and each project is at a different stage.

Fund That Flip closed the loan on this property on January 14, 2019. Your investment will begin accruing interest on the day it clears escrow.

The developer previously purchased all 3 of the subject properties and has completed a significant amount of construction. The value labeled as the purchase price is actually the appraised as-is value of the portfolio. The value labeled as the expected rehab budget is the total amount of construction left to be completed per an independent 3rd part inspection firm.

Fund That Flip has provided a first distribution of $277,396 to the developer at closing for a loan to as-is of 62.6%. Fund That Flip is holding back $23,063 for 3 months of pre-paid interest.

The remaining construction budget is $430,576. Fund That Flip will finance $429,541 of the remaining 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 7 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 $209,701 in equity, including an estimated $165,604 at the time of closing. The total loan-to-ARV is 63.3%. There is a 3 month pre-payment penalty, meaning investors will earn interest through April 14, 2019, even if paid back earlier. The term of the underlying loan is 12 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 $443,000 $277,396 37.0%
Purch. $443,000 $277,396 37.0%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $430,576 $429,541 57.3%
Prepaid Int $23,063 $23,063 3.1%
Closing $20,000 $20,000 2.7%
Total $916,639 $750,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $443,000 $277,396 $165,604 62.6%
Purch. $443,000 $277,396 $165,604 62.6%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $430,576 $429,541 $1,035 99.8%
Prepaid Int $23,063 $0 $23,063 0.0%
Closing $20,000 $20,000 $20,000 100.0%
Total $916,639 $726,938 $209,701 79.3%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $443,000 $277,396 62.6%
Appraised ARV: $1,294,000 $750,000 58.0%
FTF Valuation: $1,185,000 $750,000 63.3%

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 have a similar number of bedrooms, bathrooms, and square footage, and are of similar home style.

The internal valuation of $1,185,000 on the portfolio is supported by the following data points for each property:
1310 Olive St, Indianapolis, IN 46203
• FTF's internal valuation on this property indicated an ARV of $315,000.
• 6 comparable properties have recently sold between $280,000 and $380,000.
    • The comparable properties used in the analysis are within 0.22 miles of the subject.
• Price per square foot of these comparable properties ranges from $168 to $226.
• Our internal valuation yielded a price per square foot of $193.

1134 Laurel St, Indianapolis, IN 46203
• FTF's internal valuation on this property indicated an ARV of $400,000.
• 6 comparable properties have recently sold between $368,000 and $450,000.
    • The comparable properties used in the analysis are within 0.31 miles of the subject.
• Price per square foot of these comparable properties ranges from $159 to $204.
• Our internal valuation yielded a price per square foot of $171.

818 Olive St, Indianapolis, IN 46203
• FTF's internal valuation on this property indicated an ARV of $470,000.
• 6 comparable properties have recently sold between $369,000 and $545,000.
    • The comparable properties used in the analysis are within 0.32 miles of the subject.
• Price per square foot of these comparable properties ranges from $165 to $227.
• Our internal valuation yielded a price per square foot of $183.

Fund That Flip supplemented our internal valuations with appraisals. The appraisals indicated an ARV of $1,294,000 for the portfolio. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation. The appraised ARV of each property is as follows:
1310 Olive St: $349,000
1134 Laurel St: $420,000
818 Olive St: $525,000

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

About the Property


Details

Purchase Price $443,000
Estimated Rehab Budget $430,576
ARV $1,185,000
Current Appraised Value $443,000
Developer Equity $209,701 plus closing & holding costs

Market Overview


• Indianapolis is a city in Marion County, IN

Indianapolis, IN is located in the Indianapolis metropolitan area. The metropolitan area is home to a number of higher education institutions including Indian University - Purdue University Indianapolis and Butler University. The principal city and the metro area's namesake is Indianapolis. Indianapolis is the capital and most populous city of the state of Indiana. Indianapolis may be most well known for being the home of one of the world's largest single-day sporting events, the Indianapolis 500. Additionally, Indianapolis is home to 3 Fortune 500 companies from the 2018 list.

The subject properties are:
    • Less than 2 miles to Downtown Indianapolis
    • Less than 4 miles to Indiana University - Purdue University Indianapolis
    • Less than 2 miles to Lucas Oil Stadium

  • data acquired from internal sources.

Project Strategy


The developer previously purchased these properties and has completed a significant amount of construction. They obtained financing from Fund That Flip on January 14, 2019. Your investment will begin accruing interest the day it clears escrow.

The addresses of the properties in the portfolio are as follows:
• 1310 Olive St, Indianapolis, IN 46203
• 1134 Laurel St, Indianapolis, IN 46203
• 818 Olive St, Indianapolis, IN 46203

The project at 1310 Olive Street is a rehab and the projects at 1134 Laurel Street and 818 Olive Street are both new construction. The construction on all 3 properties has already begun and each project is at a different stage.

The specs of each property are as follows:
1310 Olive St, Indianapolis, IN 46203
• Bedrooms: 3
• Bathrooms: 2 full, 1 half
• Year Built: 1900
• Square Footage: 1,632
• Garage Spaces: 2

1134 Laurel St, Indianapolis, IN 46203
• Bedrooms: 4
• Bathrooms: 3 full, 1 half
• Year Built: 2019
• Square Footage: 2,340
• Garage Spaces: 2

818 Olive St, Indianapolis, IN 46203
• Bedrooms: 3
• Bathrooms: 2 full, 1 half
• Year Built: 2019
• Square Footage: 2,567
• Garage Spaces: 2

Construction has already begun and will continue shortly after loan closing. It includes the following:
• Plumbing
• Electrical
• Framing & Drywall
• Hardwood
• Interior & Exterior Paint
• Windows
• HVAC
• Appliances
• Roofing
• Cabinets & Countertops

The full statements of work for each property in the portfolio are 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 63.3%.
• 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.