Status: Repaid

Annual Return Term Remaining
9.25% - mo.
Loan to ARV
69.9%
Investment Offering
$2,140,000
Min. Investment
$5,000
Term
12 mo.
Guarantee
Personal Guarantee
Underlying Security
1st Position

Updates


Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 12/05/2019.

You will receive the following payments related to this payoff: November 2019 Normal Interest, December 2019 Partial Normal Interest, 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.

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

The project is 100% complete.

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

Investors will be notified as further developments occur.

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

Based on the Inspection Report this project is at 83% completion.

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

Investors will be notified as further developments occur.

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.

As the borrower's loan is now current, Fund That Flip has ordered an inspection of this property to monitor the progress.

Based on the Inspection Report this project is at 62% completion.

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

Investors will be notified as further developments occur.

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.

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

The developer has represented that they have passed their rough-in inspections and will begin insulating and sheeting in the coming weeks.

The developer continues to remit timely interest payments on a monthly basis.

Investors will continue to be updated as further developments occur.

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

The developer has represented that they continue progress on the rehab.

They will be requesting 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
Purchase Price $2,375,000 $1,843,406 86.1%
Expected Rehab Budget $606,761 $186,500 8.7%
Prepaid Interest Amount $64,794 $64,794 3.0%
Closing Fees $45,300 $45,300 2.1%
Total $3,091,855 $2,140,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
Purchase Price $2,375,000 $1,843,406 $531,594 77.6%
Expected Rehab Budget $606,761 $186,500 $420,261 30.7%
Prepaid Interest Amount $64,794 $0 $64,794 0.0%
Closing Fees $45,300 $45,300 $45,300 100.0%
Total $3,091,855 $2,075,206 $1,061,950 67.1%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $2,375,000 $1,843,406 77.6%
Appraised ARV: $2,850,000 $2,140,000 75.1%
FTF Valuation: $3,060,000 $2,140,000 69.9%

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

The aggregate internal valuation is $3,060,000. This is the combined valuation for all 6 condo units. The internal valuation for each individual condo is $510,000. This valuation is supported by the following data points:
• 6 comparable properties have recently sold between $449,000 and $550,000.
• Price per square foot of these comparable properties ranges from $787 to $972.
• Our internal valuation yielded a price per square foot of $968.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $2,850,000 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 6
Full Bathrooms 6
Year Built 1900
Purchase Price $2,375,000
Estimated Rehab Budget $606,761
ARV $3,060,000
Current Appraised Value $2,200,000
Developer Equity $1,061,950 plus closing & holding costs

Market Overview


• Jersey City is a city in Hudson County, NJ

The subject property is:
    • 6 miles to Midtown Manhattan
    • Less than 0.5 miles to the nearest train station
    • 2 miles to Hoboken

• Retail Sales Sold: 82%
• Short Sales Sold: 0%
• REO Sold: 18%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on April 12, 2019. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Kitchen Cabinets
• Vanities
• Countertops
• Electrical
• Plumbing
• Hardwood
• Interior & Exterior Paint
• HVAC
• Windows
• 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 69.9%.
• 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.