Status: Repaid

Annual Return Term Remaining
9% -
Loan to ARV
58.9%
Investment Offering
$2,060,000
Min. Investment
$5,000
Term
12 mo.
Guarantee
Personal Guarantee
Underlying Security
1st Position

Updates

  • 11/05/20

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 10/28/2020.

    You will receive the following payments related to this payoff: October 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.

  • 10/20/20

    Fund That Flip is pleased to inform you that the loan has completed a fourth partial payoff. The partial payoff date is 10/19/2020.

    The developer has sold a fourth unit in the portfolio and remitted $389,928.57 to Fund That Flip to complete a partial payoff.

    Investors will receive a return of principal equal to 18.99% 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 5-8 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 units and make a full principal repayment.

  • 10/20/20

    Fund That Flip is pleased to inform you that the loan has completed a third partial payoff. The partial payoff date is 10/16/2020.

    The developer has sold a third unit in the portfolio and remitted $261,445.24 to Fund That Flip to complete a partial payoff.

    Investors will receive a return of principal equal to 12.73% 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 5-8 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 units and make a full principal repayment.

  • 10/19/20

    Fund That Flip is pleased to inform you that the loan has completed a second partial payoff. The partial payoff date is 10/15/2020.

    The developer has sold a second unit in the portfolio and remitted $515,000.00 to Fund That Flip to complete a partial payoff.

    Investors will receive a return of principal equal to 25.08% 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 5-8 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 units and make a full principal repayment.

  • 10/19/20

    Fund That Flip is pleased to inform you that the loan has been partially paid off. The partial payoff date is 10/14/2020.

    The developer has sold one of the units in the portfolio and remitted $515,000.00 to Fund That Flip to complete a partial payoff.

    Investors will receive a return of principal equal to 25.08% 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 5-8 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 units and make a full principal repayment.

  • 10/19/20

    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.

  • 09/29/20

    Earlier this week Fund That Flip spoke with the developer about the current status of the project.

    The developer has represented that there are multiple units under contract, however, they are waiting to obtain the Certificate of Occupancy in order to close on the sales of the units.

    Fund That Flip has requested a copy of the executed purchase contracts to verify the transactions.

    Investors will continue to be updated as further developments occur.

  • 08/14/20

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

    Based on the Inspection Report this project is at 98% completion.

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

    Investors will be notified as further developments occur.

  • 08/10/20

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

    Based on the Inspection Report this project is at 92% completion.

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

    Investors will be notified as further developments occur.

  • 07/30/20

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

    Based on the Inspection Report this project is at 79% completion.

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

    Investors will be notified as further developments occur.

  • 07/06/20

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

    Based on the Inspection Report this project is at 67% completion.

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

    Investors will be notified as further developments occur.

  • 06/05/20

    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.

  • 05/29/20

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

    The developer has requested a construction draw to be reimbursed for expenses.

    We have ordered an inspection on the property to monitor progression.

    Investors will continue to be updated as further developments occur.

  • 04/06/20

    The developer has progressed to 54% 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 12/5/2020.

    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

  • 03/16/20

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

    Based on the Inspection Report this project is at 54% completion.

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

    Investors will be notified as further developments occur.

  • 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 46% completion.

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

    Investors will be notified as further developments occur.

  • 01/30/20

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

    Based on the Inspection Report this project is at 37% completion.

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

    Investors will be notified as further developments occur.

  • 01/29/20

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

    The developer has represented that they are finishing rough mechanicals within the next few weeks and are targeting a mid-May completion date.

    We expect that the developer will request an extension the closer they get to maturity.

    Investors will continue to be updated as further developments occur.

  • 12/16/19

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

    Based on the Inspection Report this project is at 26% completion.

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

    Investors will be notified as further developments occur.

  • 11/13/19

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

    Based on the Inspection Report this project is at 17% completion.

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

    Investors will be notified 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 7% completion.

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

    Investors will be notified as further developments occur.

  • 08/13/19

    This loan has a maturity date of 06/05/2020.

    The redeveloper is paid current but has not requested a construction draw yet.

    The Fund That Flip team is in communication with the redeveloper to understand the construction progress and to coordinate an inspection of the property.

    Fund That Flip will continue to provide updates as they are available.

Use of Proceeds


  Cost Use of Proceeds % of Loan
At close $1,550,000 $1,259,172 61.1%
Purch. $1,550,000 $1,259,172 61.1%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $750,000 $656,667 31.9%
Prepaid Int $100,711 $100,711 4.9%
Closing $43,450 $43,450 2.1%
Total $2,444,161 $2,060,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $1,550,000 $1,259,172 $290,828 81.2%
Purch. $1,550,000 $1,259,172 $290,828 81.2%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $750,000 $656,667 $93,333 87.6%
Prepaid Int $100,711 $0 $100,711 0.0%
Closing $43,450 $43,450 $43,450 100.0%
Total $2,444,161 $1,959,289 $528,322 80.2%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $1,550,000 $1,259,172 81.2%
Appraised ARV: $3,690,000 $2,060,000 55.8%
FTF Valuation: $3,500,000 $2,060,000 58.9%

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

Upon completion, there will be two sizes of condo units in this building. The aggregate internal valuation for all 6 units of $3,500,000 is supported by the following data points for each type of unit:

Units 1 and 1R
• FTF ARV: $700,000
• 6 comparable properties have recently sold between $525,000 and $725,000.
    • The comparables used in the analysis are within 0.22 miles of the subject property.
• Price per square foot of these comparable properties ranges from $498 to $684.
• Our internal valuation yielded a price per square foot of $666.

Units 2 and 2R
• FTF ARV: $530,000
• 7 comparable properties have recently sold between $430,000 and $512,000.
    • The comparables used in the analysis are within 0.31 miles of the subject property.
• Price per square foot of these comparable properties ranges from $779 to $892.
• Our internal valuation yielded a price per square foot of $785 for unit 2 and a price per square foot of $883 for unit 2R .

Units 3 and 3R
• FTF ARV: $520,000
• 7 comparable properties have recently sold between $430,000 and $512,000.
    • The comparables used in the analysis are within 0.31 miles of the subject property.
• Price per square foot of these comparable properties ranges from $779 to $892.
• Our internal valuation yielded a price per square foot of $755 for unit 2 and a price per square foot of $866 for unit 2R .

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $3,690,000 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

Purchase Price $1,550,000
Estimated Rehab Budget $750,000
ARV $3,500,000
Current Appraised Value $1,750,000
Developer Equity $528,322 plus closing & holding costs

Market Overview


• Boston is a town in Suffolk County, MA

The subject property is:
    • 2.3 miles to Boston, MA
    • 4 miles to Boston, MA
    • 6 miles to Boston, MA

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

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on June 05, 2019. Your investment will begin accruing interest the day it clears escrow.

They will convert these two 3-unit multi-family buildings into 6 individual condo units and sell each individually.

Building 1 (front) :
Unit 1 will have the following specifications:
Bedrooms: 2
Bathrooms: 2
Square Footage: 1,050

Unit 2 will have the following specifications:
Bedrooms: 2
Bathrooms: 1
Square Footage: 675
Rear deck

Unit 3 will have the following specifications:
Bedrooms: 1
Bathrooms: 1
Square Footage: 685
Rear deck

Building 2 (rear) :
Unit 1R will have the following specifications:
Bedrooms: 2
Bathrooms: 2
Square Footage: 1,050

Unit 2R will have the following specifications:
Bedrooms: 2
Bathrooms: 1
Square Footage: 600
Ground level patio

Unit 3 will have the following specifications:
Bedrooms: 1
Bathrooms: 1
Square Footage: 600
Ground level patio

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

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 58.9%.
• 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 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.