Status: Repaid

Annual Return Term Remaining
8.5% -
Loan to ARV
45.3%
Investment Offering
$1,700,000
Min. Investment
$5,000
Term
15 mo.
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

This offering is fully funded

Brooklyn, NY Condominium Conversion

REPEAT BORROWER

Updates

  • 02/22/22

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 02/11/2022.

    In order to secure a timely final payoff, Fund That Flip made the decision to retroactively grant an extension from November 2021 through final payoff.
    You will receive the following payments related to this payoff: November 2021 Normal Interest, December 2021 Normal Interest, January 2022 Normal Interest, February 2022 Partial Normal Interest, 13 Late Fees (may vary depending on accrual date), 1 Extension 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.

  • 01/24/22

    Fund That Flip remains in frequent contact with the developer’s counsel who is representing them in the loan refi. The developer’s counsel informed that his clients are now pursuing a CEMA loan (Consolidation, Extension, and Modification Agreement) which will help reduce the developer’s refi costs.

    As the current lender, Fund That Flip is supporting the process by providing the necessary loan documents and assignment as required for the CEMA loan type. The developer’s counsel represents they anticipate the loan closing in early February.

    Investors will be updated as further developments occur.

  • 01/20/22

    The monthly interest payment for December has not yet been received.

    Fund That Flip's Servicing team will continue their collection efforts throughout the month via phone, text, and email in an effort to receive payment as soon as possible.

    A late fee has been assessed and will be distributed according to the 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.

  • 01/18/22

    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.

  • 12/17/21

    The monthly interest payment for November has not yet been received.

    A late fee has been assessed and will be distributed according to the 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.

  • 12/14/21

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

    The developer has represented that their refinance lender's loan committee has approved the refinance loan. They are working diligently to close before the end of the year.

    The developer is aware that the loan is past maturity and behind on interest payments. At the moment, Fund That Flip is not offering another extension to the developer but rather supporting them in their efforts to refinance the loan.

    Investors will be updated as further developments occur.

  • 11/30/21

    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.

  • 11/19/21

    The monthly interest payment for October has not yet been received.

    A late fee has been assessed and will be distributed according to the 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.

  • 10/08/21

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

    The developer has requested a loan extension to finalize the refinance and payoff of the project. The developer has been working to remit up-to-date interest payments and secure tenants in the building so that they can finalize their refinance. This extension has been delayed over the past few months as we were working with the developer to bring payments up to date.

    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 six months. The updated maturity date for this loan is 11/23/2021.

    Investors will receive their share of collected extension fees within 5-7 business days.

  • 10/08/21

    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.

  • 09/22/21

    The monthly interest payment for August has not yet been received.

    A late fee has been assessed and will be distributed according to the 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.

  • 09/09/21

    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.

  • 08/20/21

    The monthly interest payment for July has not yet been received.
    A late fee has been assessed and will be distributed according to the 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.

  • 07/26/21

    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.

  • 07/20/21

    The monthly interest payment for June has not yet been received.

    A late fee has been assessed and will be distributed according to the 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.

  • 07/01/21

    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.

  • 06/18/21

    The monthly interest payment for May has not yet been received.

    A late fee has been assessed and will be distributed according to the 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.

  • 05/21/21

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

    The developer has represented that they need additional time to complete their refinance.

    Fund That Flip is currently working with the developer to extend the loan. The extenison should be finalized within the next coming weeks.

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

  • 05/21/21

    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.

  • 05/17/21

    The monthly interest payment for April has not yet been received.

    A late fee has been assessed and will be distributed according to the 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.

  • 04/22/21

    Based on the inspection report, this project is at 100.0% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 04/21/21.

  • 04/21/21

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

    We are currently reviewing the inspection report to determine how much of the rehab has been completed.

  • 03/15/21

    Based on the inspection report, this project is at 98.57% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 03/12/21.

  • 03/11/21

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

    We are currently reviewing the inspection report to determine how much of the rehab has been completed.

  • 02/12/21

    Based on the inspection report, this project is at 97.08% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 02/11/21.

  • 02/10/21

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

    We are currently reviewing the inspection report to determine how much of the rehab has been completed.

  • 12/22/20

    Based on the inspection report, this project is at 91.62% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 12/21/20.

  • 12/21/20

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

    We are currently reviewing the inspection report to determine how much of the rehab has been completed.

  • 12/01/20

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

    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 six months. The updated maturity date for this loan is 5/23/2021.

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

  • 11/17/20

    Based on the inspection report, this project is at 85.5% complete.
    Fund That Flip has processed a construction draw to reimburse developer expenses on 11/16/20

  • 11/16/20

    Fund That Flip has received an inspection report of this property to monitor the progress.
    We are currently reviewing the inspection report to determine how much of the rehab has been completed.

  • 10/30/20

    Based on the inspection report, this project is at 81.96% complete.
    Fund That Flip has processed a construction draw to reimburse developer expenses on 10/29/20

  • 10/27/20

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

    Based on the Inspection Report this project is at 81% completion.

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

    Investors will be notified as further developments occur.

  • 09/28/20

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

    Based on the Inspection Report this project is at 78% completion.

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

    Investors will be notified as further developments occur.

  • 09/22/20

    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.

  • 09/16/20

    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.

  • 08/20/20

    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.

  • 08/20/20

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

    Based on the Inspection Report this project is at 73% completion.

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

    Investors will be notified 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.

  • 07/22/20

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

    Based on the Inspection Report this project is at 71% completion.

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

    Investors will be notified as further developments occur.

  • 07/20/20

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

    Based on the Inspection Report this project is at 69% 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.

  • 06/19/20

    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 bank account within 5 business days.

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

    The developer has represented that local restrictions which halted all non-essential construction have been lifted in their area and they have re-opened the job site to continue progressing the project.

    Fund That Flip is currently working with the developer to understand their current timeline to completion and when they will be requesting their next draw disbursement.

    Investors will continue to be updated as further developments occur.

  • 06/15/20

    The monthly interest payment for May 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.

  • 04/20/20

    Fund That Flip has been in contact with the borrower on the current status of the project.

    Based on recent inspection reports, the project is 65% completed, which includes all of the foundational & structural work and interior framing has started as well. As of 4/17/2020, due to local & state ordinance in response to the health crisis, all construction work is currently halted. The borrower has represented that the project is secure and they're adhering to local and state ordinance.

    The borrower has represented that when the city allows construction to begin again, they will continue to progress the project. They estimate to have the project completed in 4 months once construction restarts and assuming that construction is able to operate at full capacity as it once was.

    Fund That Flip will continue to regularly communicate with the borrower and will notify investors when work has been allowed to resume.

  • 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 65% completion.

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

    Investors will be notified as further developments occur.

  • 02/20/20

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

    Based on the Inspection Report this project is at 45% completion.

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

    Investors will be notified as further developments occur.

  • 02/14/20

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

    Based on the Inspection Report this project is at 27% completion.

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

    Investors will be notified as further developments occur.

  • 01/22/20

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

    Based on the Inspection Report this project is at 21% completion.

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

    Investors will be notified as further developments occur.

  • 12/05/19

    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.

  • 11/11/19

    This loan has a maturity date of 11/23/2020.

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

    The Fund That Flip team is in communication with the developer 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 $835,000 $189,325 11.1%
Purch. $835,000 $189,325 11.1%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $1,703,150 $1,403,250 82.5%
Prepaid Int $51,425 $51,425 3.0%
Closing $56,000 $56,000 3.3%
Total $2,645,575 $1,700,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $835,000 $189,325 $645,675 22.7%
Purch. $835,000 $189,325 $645,675 22.7%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $1,703,150 $1,403,250 $299,900 82.4%
Prepaid Int $51,425 $0 $51,425 0.0%
Closing $56,000 $56,000 $56,000 100.0%
Total $2,645,575 $1,648,575 $1,053,000 62.3%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $835,000 $189,325 22.7%
Appraised ARV: $4,235,000 $1,700,000 40.1%
FTF Valuation: $3,750,000 $1,700,000 45.3%

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 are within 1.1 miles of the subject, have a similar number of bedrooms, bathrooms, and square footage, and are of similar home style.

The internal valuation of $3,750,000 (rounded) on the property is supported by the following data points:
• Unit #1F:
    • $430,000 FTF ARV
    • 5 comparable properties have recently sold between $400,530 and $499,000.
    • These comparable properties are within 1 mile of the subject property.
    • Price per square foot of these comparable properties ranges from $576 to $984.
    • Our internal valuation yielded a price per square foot of $561.
• Units #1R, #2F, #2R, #3F, #3R, #4R:
    • $450,000 FTF ARV
    • 4 comparable properties have recently sold between $505,000 and $540,000.
    • These comparable properties are within 0.93 miles of the subject property.
    • Price per square foot of these comparable properties ranges from $721 to $984.
    • Our internal valuation yielded an average price per square foot of $840.
• Unit #4F:
    • $620,000 FTF ARV
    • 4 comparable properties have recently sold between $610,000 and $639,000.
    • These comparable properties are within 1.7 miles of the subject property.
    • Price per square foot of these comparable properties ranges from $610 to $948.
    • Our internal valuation yielded a price per square foot of $738.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $4,235,000 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 8
Full Bathrooms 7
Year Built 2019
Square Footage 5158 SF
Purchase Price $835,000
Estimated Rehab Budget $1,703,150
ARV $3,750,000
Current Appraised Value $800,000
Developer Equity $1,053,000 plus closing & holding costs

Market Overview


• Brooklyn is the most populous borough of New York City.

    • 6.3 miles to downtown Manhattan (40 minute commute)
    • 0.4 miles to the nearest subway station (8 minute walk)
    • 11 miles to John F. Kennedy International Airport

• Retail Sales Sold: 93%
• Short Sales Sold: 0%
• REO Sold: 7%

  • data acquired from internal sources.

Project Strategy


The developer previously purchased this property. They will receive financing from Fund That Flip on August 23, 2019. Your investment will begin accruing interest the day it clears escrow.

This property will be converted into 8 condos. They will be sold individually upon completion. The borrower has been involved in a similar project in Brooklyn, NY.

Each condo unit will be different. See each units specifics below:
• Unit #1F: studio, 1 bath, 767 square feet
    • This total square footage includes 373 square feet of finished cellar space.
• Unit #1R and #2R: 1 bed, 1 bath, 546 square feet
• Unit #2F and 3F: 1 bed, 1 bath, 565 square feet
• Unit #3R: 1 bed, 1 bath, 500 square feet
    • This unit will have a terrace.
• Unit #4F: 2 beds, 2 baths, 840 square feet
    • This unit will have a roof deck. This will be a penthouse.
• Unit #4R: 1 bed, 1 bath, 500 square feet
    • This unit will have a balcony.

Construction will begin shortly after loan closing and includes the following:
• Demolition
• Concrete
• Framing
• Plumbing
• HVAC
• Electrical
• Roofing & Stucco
• Windows
• Appliances
• Fixtures

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 45.3%.
• 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 15 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.