Status: Repaid

Annual Return Term Remaining
12% -
Loan to ARV
52.4%
Investment Offering
$1,950,000
Min. Investment
$5,000
Term
6 mo.
Guarantee
Personal Guarantee
Underlying Security
1st Position

Updates

  • 09/18/20

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 09/16/2020.

    You will receive the following payments related to this payoff: September 2020 Partial Normal Interest, 2 Extension Fees, 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.

  • 08/27/20

    The updated maturity date for this loan is 9/18/2020.

    The developer has requested a loan extension to finalize a sale of the project.

    Fund That Flip has verified that the borrower has completed the rehab on this project.

    The property is currently under contract for sale and they are targeting to close in mid-September.

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

    The maturity date will be extended an additional month and a half.

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

  • 08/27/20

    Fund That Flip is pleased to inform you that the 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.

  • 08/17/20

    The monthly interest payment for July 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.

  • 08/07/20

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

    The developer is negotiating a sale and will have a closing date once they come to an agreement on terms with the buyer.

    Investors will continue to be updated as further developments occur.

  • 06/19/20

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

    Based on the Inspection Report this project is at 100% 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 represented that the remaining portion of the rehab has been finished.

    They have begun the refinance process but do not have any commitment letters from other lenders.

    Investors will continue to be updated as further developments occur.

  • 04/09/20

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

    Based on the Inspection Report this project is at 97% completion.

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

    This was a deciding factor in extending the maturity date.

    This developer has successfully executed six projects with Fund That Flip and is expected to be complete with the rehab of this project within the next week.

    Investors will be notified as further developments occur.

  • 04/02/20

    The developer has progressed to 50% complete on the project.

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

    Fund That Flip reviewed 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 08/03/2020.

    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.

  • 02/14/20

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

    The developer is working on a refinance of this loan and plans to close by the end of this month.

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

    Investors will continue to be updated as further developments occur.

  • 01/24/20

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

    The developer is looking at both refinancing and extension 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.

  • 12/20/19

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

    We received an inspection report showing about 50% completion and plan on sending a construction draw to the developer.

    Based on the project timeline, we expect the borrower to request a second extension. We will review the request as this loan comes closer to maturity.

    Investors will continue to be updated as further developments occur.

  • 11/05/19

    The updated maturity date for this loan is 02/03/2020.

    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 in the next 3-5 business days.

  • 09/06/19

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

    The developer has represented that the framing is complete, siding is currently happening, windows are in, and HVAC will begin next week.

    Fund That Flip is planning on ordering an inspection in the coming weeks to monitor progress on the rehab.

    Investors will continue to be updated as further developments occur.

  • 07/02/19

    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 portion of the rehab.

    They are ahead of schedule and moving quickly as they plan to take a draw within the coming weeks.

    Investors will continue to be updated as further developments occur.

Use of Proceeds


  Cost Use of Proceeds % of Loan
At close $1,450,000 $1,102,792 56.6%
Purch. $1,450,000 $1,102,792 56.6%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $1,020,079 $741,250 38.0%
Prepaid Int $64,458 $64,458 3.3%
Closing $41,500 $41,500 2.1%
Total $2,576,037 $1,950,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $1,450,000 $1,102,792 $347,208 76.1%
Purch. $1,450,000 $1,102,792 $347,208 76.1%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $1,020,079 $741,250 $278,829 72.7%
Prepaid Int $64,458 $0 $64,458 0.0%
Closing $41,500 $41,500 $41,500 100.0%
Total $2,576,037 $1,885,542 $731,996 73.2%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $1,450,000 $1,102,792 76.1%
Appraised ARV: $3,980,000 $1,950,000 49.0%
FTF Valuation: $3,720,000 $1,950,000 52.4%

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 $3,720,000 on the property is supported by the following data points:
• Units 1A & 1B:
    • $750,000 FTF ARV
    • 5 comparable properties have recently sold between $685,000 and $810,000.
    • These comparable properties are within 0.48 miles of the subject property.
    • Price per square foot of these comparable properties ranges from $354 to $563.
    • Our internal valuation yielded a price per square foot of $420.

• Units 2A, 2B, 3A, & 3B:
    • $555,000 FTF ARV
    • 5 comparable properties have recently sold between $405,000 and $$659,900.
    • These comparable properties are within 0.61 miles of the subject property.
    • Price per square foot of these comparable properties ranges from $467 to $600.
    • Our internal valuation yielded a price per square foot of $597.

und That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $3,980,000 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

Year Built 1909
Purchase Price $1,450,000
Estimated Rehab Budget $1,020,079
ARV $3,720,000
Current Appraised Value $1,500,000
Developer Equity $731,996 plus closing & holding costs

Market Overview


• Jersey City is a city in Hudson County, NJ

The subject property is:
    • 4 miles to Midtown Manhattan
    • 2 miles to Hoboken
    • 3 miles to Downtown Jersey City

• Retail Sales Sold: 66%
• Short Sales Sold: 0%
• REO Sold: 34%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on May 03, 2019. Your investment will begin accruing interest the day it clears escrow.

This property will be converted into 6 condos. They will be sold individually upon completion. The borrower has executed a similar project in the same market.

See each units specifications below:
• Units 1A & 1B
    •Bed:4
    •Bath:3
    • Square feet: 1,785

• Units 2A, 2B, 3A, & 3B:
    •Bed:2
    •Bath:2
    • Square feet: 929

Construction will begin shortly after loan closing and includes the following:
• Kitchen Cabinets
• Vanities
• Countertops
• Electrical
• Plumbing
• Hardwood
• Tile
• Exteriort Siding & Paint
• Roofing
• Windows

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 52.4%.
• 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 6 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.