Status: Repaid

Annual Return Term Remaining
8.25% -
Loan to ARV
58.6%
Investment Offering
$85,000
Min. Investment
$5,000
Term
9 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x3
Underlying Security
1st Position

This offering is fully funded

Cincinnati, OH Rehab

REPEAT BORROWER

Updates

  • 11/17/20

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 11/12/2020.

    You will receive the following payments related to this payoff: November 2020 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.

  • 10/28/20

    Fund That Flip has been in communication with the developer about the status of their refinance.

    The developer has represented that the project has submitted everything to underwriting and most items have cleared and that they should have the clear to close soon.

    Once they have the clear to close the developer will be able to target a closing date for the refinance and payoff.

    The developer has continued to make up to date and timely interest payments.

    Investors will be updated as further developments occur.

  • 09/01/20

    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 refinance and payoff of the project.

    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 three months. The updated maturity date for this loan is 11/26/2020.

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

  • 07/14/20

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

    The developer has represented that the property is tenanted and they are in the process of securing a long-term refinance. Fund That Flip has requested lease agreements in order to verify this.

    Investors will continue to be updated as further developments occur.

  • 06/11/20

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

    The developer has represented that they are currently seeking to rent this property out to tenants and subsequently exit the loan by securing a refinance.

    The developer is paid current on interest.

    Investors will continue to be updated as further developments occur.

  • 05/04/20

    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.

    Investors will be updated as further developments occur.

  • 04/27/20

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

    Based on the Inspection Report this project is at 100% completion.

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

    Investors will be notified as further developments occur.

  • 04/17/20

    The monthly interest payment for March 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.

  • 01/28/20

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

    Based on the Inspection Report this project is at 41% completion.

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

    Investors will be notified as further developments occur.

Investment Summary


Type Rehab
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee x3

Fund That Flip closed the loan on this property on November 26, 2019. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $49,740 to the developer at closing for a loan to purchase of 75.4%. Fund That Flip is holding back $2,467 for 3 months of pre-paid interest.

The construction budget is $42,500. Fund That Flip will finance $29,880 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 3 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 $34,238 in equity, including an estimated $16,238 at the time of closing. The total loan-to-ARV is 58.6%. There is a 3 month pre-payment penalty, meaning investors will earn interest through February 26, 2020, even if paid back earlier. The term of the underlying loan is 9 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 $65,978 $49,740 58.5%
Purch. $65,978 $49,740 58.5%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $42,500 $29,880 35.2%
Prepaid Int $2,467 $2,467 2.9%
Closing $2,913 $2,913 3.4%
Total $113,858 $85,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $65,978 $49,740 $16,238 75.4%
Purch. $65,978 $49,740 $16,238 75.4%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $42,500 $29,880 $12,620 70.3%
Prepaid Int $2,467 $0 $2,467 0.0%
Closing $2,913 $2,913 $2,913 100.0%
Total $113,858 $82,533 $34,238 72.5%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $65,978 $49,740 75.4%
Appraised ARV: $150,000 $85,000 56.7%
FTF Valuation: $145,000 $85,000 58.6%

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

The internal valuation of $145,000 on the property is supported by the following data points:
• 5 comparable properties have recently sold between $139,000 and $154,000.
• Price per square foot of these comparable properties ranges from $101 to $134.
• Our internal valuation yielded a price per square foot of $105.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $150,000 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 4
Full Bathrooms 1
Year Built 1978
Square Footage 1356 SF
Garage Spaces 1
Purchase Price $65,978
Estimated Rehab Budget $42,500
ARV $145,000
Developer Equity $34,238 plus closing & holding costs

Market Overview


• Cincinnati is a city in Hamilton County, OH

    • 2.1 miles to William Harbin Park
    • 6.4 miles to Winton Woods
    • 19.3 miles to Cincinnati, Ohio

• Retail Sales Sold: 98%
• Short Sales Sold: 0%
• REO Sold: 2%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on November 26, 2019. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Demolition
• Drywall
• Appliances
• Plumbing Repairs
• Framing
• Electrical
• Furnace
• Flooring
• Insulation
• Roof Maintenance

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 58.6%.
• 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 9 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.