Status: Repaid

Annual Return Term Remaining
8.75% -
Loan to ARV
63.0%
Investment Offering
$2,440,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

This offering is fully funded

Miami, FL New Construction

REPEAT BORROWER

Updates

  • 02/28/22

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 02/22/2022.

    To secure a final payoff and return full principal in a timely manner, Fund That Flip made the decision to retroactively grant an extension fee from December 2020 through final payoff.

    You will receive the following payments related to this payoff: January 2022 Normal Interest, February 2022 Partial Normal Interest, 1 Extension Fee, 5 Late Fees, 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.

  • 02/22/22

    The developer provided the necessary permit information and Fund That Flip’s Underwriting team provided the clear to close on the re-book (or new loan).

    The loan closing occurred on 2/18/22. Once payoff funds are reconciled by the FTF Finance team investor distributions will be processed.

  • 02/08/22

    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.

  • 01/27/22

    Fund That Flip has maintained frequent communication with the developer on the status of securing permits.

    The developer recently pledged to have a letter from the third-party he is utilizing to secure the permits by Feb 1st. Upon receipt of the documentation the Underwriting team will review and decision.

    Earlier this week the developer made their December interest payment.

    Investors will continue to 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.

  • 01/04/22

    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.

  • 12/13/21

    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

    Fund That Flip’s VP of Business Development met with the borrower last week to discuss the loan re-book timeline.

    The final underwriting requirement is the developer securing the required permits. The developer expressed frustration with the city’s permitting process and expects to have permits by the end of November. The closing will occur shortly after receiving the permits.

    The developer represents they are delivering eight homes within the next two months and in position to quickly start this project.

    Investors will continue to be updated as further developments occur.

  • 11/18/21

    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.

  • 10/26/21

    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.

  • 09/28/21

    Fund That Flip continues to work with the developer on the re-book process.

    The Fund That Flip Underwriting team has received a new appraisal and is working with the developer on collection of additional project related information to close on the loan.

    The developer continues to make monthly interest payments until the re-book loan is closed.

    Investors will continue to be updated as further developments occur.

  • 09/24/21

    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.

  • 09/21/21

    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.

  • 09/03/21

    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.

  • 08/06/21

    Fund That Flip continues to work with the developer on the re-book process.

    Unfortunately, due to a heavy industry demand on appraisers, the turnaround timeline for delivery of appraisal reports can exceed 3-4 weeks. Currently, the appraisal reports are projected to be delivered the week of 8/9/21.
    Assuming the appraisal report meets the expected valuation, closing should occur shortly after receipt.

    Investors will continue to be updated as further developments occur.

  • 08/03/21

    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.

  • 07/08/21

    Fund That Flip maintains frequent communication with the developer regarding their project exit.

    The developer reports the larger loan package refi is progressing slowly, and as an alternative Fund That Flip has discussed re-booking the loan, which would provide a timelier exit.

    The developer informed they have completed delivery of several large projects over the last quarter and in position to start this project.

    Fund That Flip is thrilled by the opportunity to continue working with the developer, who has a proven history of servicing their monthly debt obligation and reputation for building a high-quality product.

    The re-book process is expected to be completed in July.

    Investors will continue to be updated as further developments occur.

  • 06/21/21

    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.

  • 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 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.

  • 04/27/21

    Fund That Flip continues to maintain frequent communication with the developer regarding their project exit.

    The developer has informed this project is part of a larger loan package and the lender is currently completing their valuation due diligence. The developer is optimistic the refi loan will close in May.

    The developer continues to service their monthly interest payment obligation.

    Investors will continue to be updated as further developments occur.

  • 03/26/21

    Fund That Flip maintains weekly communication with the developer regarding their project exit.

    Earlier this month, the developer repaid a Fund That Flip loan through a refi lender they have prior experience with. The developer is now focused on securing a takeout loan for this project through the same lender. The estimated completion timeline is late April – early May.

    The developer continues to service their monthly interest payment obligation.

    Investors will continue to be updated as further developments occur.

  • 02/12/21

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

    The developer states they have not advanced the project as they are focused on the delivery of multiple projects within the next 30-45 days.

    The developer recently made their December and January monthly debt service payments. To maintain pressure on the developer to secure takeout financing, Fund
    That Flip has issued a Notice of Default letter for loan maturity.

    Investors will continue to be updated as further developments occur.

  • 01/19/21

    The monthly interest payment for December 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.

  • 01/13/21

    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.

  • 12/17/20

    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.

  • 12/01/20

    Fund That Flip is pleased to inform you that two past due interest payments on this loan have been received and are 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.

  • 11/17/20

    The monthly interest payment for October 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.

  • 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.

  • 09/23/20

    Earlier today Fund That Flip spoke with the owner of the development company. They represented that they are working on takeout financing with another lender to receive a new construction loan. Given the maturity is a few months away, they are in the early stages of the refinance. We will continue to remain in contact with their team and verify the lending commitment when it becomes available.

  • 07/10/20

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

    The developer has represented that construction on the property is currently paused to allow time to assess the best path forward. Fund That Flip is working closely with the developer to solidify an exit strategy, which may include a loan extension or the developer obtaining take-out financing elsewhere.

    This loan has a maturity date of 12/5/2020. Interest payments remain current.

    Investors will continue to be updated as further developments occur.

  • 05/05/20

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

    As of 5/5/2020, the developer has experienced slowed progress due to restrictions from local or state ordinance due to the health crisis. However, construction on the project continues.

    The developer confirmed adherence to government mandate and remains committed to the safety of their team.

    Fund That Flip will continue to regularly communicate with the developer to ensure work is progressing and will notify investors as further developments occur.

  • 02/03/20

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

    The developer has represented that proper permits have been obtained so that construction can begin.

    The developer anticipates requesting a construction draw in the coming weeks.

    Investors will continue to be updated as further developments occur.

Investment Summary


Type New Construction
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee x2

Fund That Flip closed the loan on this property on December 05, 2019. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $430,644 to the developer at closing for a loan to purchase of 53.8%. Fund That Flip is holding back $68,107 for 2 months of pre-paid interest.

The construction budget is $2,164,147. Fund That Flip will finance $1,873,030 of the total 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 6 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 $796,800 in equity, including an estimated $369,357 at the time of closing. The total loan-to-ARV is 63.0%. There is a 3 month pre-payment penalty, meaning investors will earn interest through March 05, 2020, even if paid back earlier. The term of the underlying loan is 12 months with an option to extend. Should Fund That Flip choose to grant the extension(s), half of the extension fee(s) collected will be distributed to investors upon receipt.

Use of Proceeds


  Cost Use of Proceeds % of Loan
At close $800,000 $430,644 17.6%
Purch. $800,000 $430,644 17.6%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $2,353,187 $1,873,030 76.8%
Prepaid Int $68,107 $68,107 2.8%
Closing $68,220 $68,220 2.8%
Total $3,289,514 $2,440,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $800,000 $430,644 $369,357 53.8%
Purch. $800,000 $430,644 $369,357 53.8%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $2,353,187 $1,873,030 $480,157 79.6%
Prepaid Int $68,107 $0 $68,107 0.0%
Closing $68,220 $68,220 $68,220 100.0%
Total $3,289,514 $2,371,894 $985,840 72.1%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $800,000 $430,644 53.8%
Appraised ARV: $4,200,000 $2,440,000 58.1%
FTF Valuation: $3,870,000 $2,440,000 63.0%

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

The internal valuation of $3,870,000 on the property is supported by the following data points:
• 5 comparable properties have recently sold between $2,075,000 and $4,250,000.
• Price per square foot of these comparable properties ranges from $509 to $850.
• Our internal valuation yielded a price per square foot of $651.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $4,200,000 for the property. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation.

In review of the appraisal, Fund That Flip noted the following items:
one too many beds and missing one half bath
• The appraisal failed to appropriately account for an additional half bathroom (there will be 2 total).
• The appraisal incorrectly accounted for an additional bedroom (5 bedrooms total)

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

About the Property


Details

Bedrooms 5
Full Bathrooms 6
Year Built 2020
Square Footage 5947 SF
Garage Spaces 2
Purchase Price $800,000
Estimated Rehab Budget $2,353,187
ARV $3,870,000
Current Appraised Value $850,000
Developer Equity $985,840 plus closing & holding costs

Market Overview


• Miami is a city in Miami-Dade County, FL

The subject proeprty is:
    •2 miles to Downtown Miami
    • 8 miles to South Beach
    • 5 miles to the University of Miami

• Retail Sales Sold: 93%
• Short Sales Sold: 2%
• REO Sold: 5%

  • data acquired from internal sources.

Project Strategy


The developer previously purchased this property in June 2017. They obtained financing from Fund That Flip on December 05, 2019. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Electrical
• Plumbing
• HVAC
• Framing
• Drywall
• Roofing
• Windows
• Flooring
• Paint
• Countertops

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 63.0%.
• 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.