Status: Repaid

Annual Return Term Remaining
12% -
Loan to ARV
66.4%
Investment Offering
$435,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

Updates

  • 11/04/20

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 10/29/2020.

    You will receive the following payments related to this payoff: October 2020 Partial Normal Interest, October 2020 Partial Penalty Interest, 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.

  • 10/29/20

    Fund That Flip is pleased to inform you that the loan has been partially paid off. The partial payoff date is 10/28/2020.

    The developer has remitted $178,507.97 to Fund That Flip to complete a partial payoff.

    Investors will receive a return of principal equal to 52.21% of their original holding in this offering. Investor holdings have also been updated to reflect these partial repayments.

    You can expect to see these funds deposited in your bank account within 5-8 business days.

    In addition, Fund That Flip will remain in close contact with the developer until they make a full principal repayment.

  • 09/28/20

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

    The developer has provided Fund That Flip with copies of the dually executed purchase contracts. They are targeting to close on both sales before maturity.

    Investors will continue to be updated as further developments occur.

  • 09/10/20

    The updated maturity date for this loan is 10/13/2020.

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

    Both properties are under contract.

    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 for one additional month.

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

  • 08/25/20

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

    The developer has represented that both of the units are under contract and will be sending over copies shortly.

    Investors will continue to be updated as further developments occur.

  • 07/10/20

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

    Based on the Inspection Report this project is at 64% completion.

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

    Investors will be notified as further developments occur.

  • 06/22/20

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

    Based on the Inspection Report this project is at 53% completion.

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

    Investors will be notified as further developments occur.

  • 05/12/20

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

    Based on the Inspection Report this project is at 31% completion.

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

    Investors will be notified as further developments occur.

  • 04/22/20

    Fund That Flip has been in contact with the developer on the current status of the project. As of 4/22/2020, construction on the project continues to progress without interruption. The developer confirmed adherence to local and state ordinance and remains committed to the safety of their team. They plan on requesting a draw in the coming weeks.

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

  • 03/03/20

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

    The developer has represented that foundation work has begun to support the second story.

    The developer plans on requesting their first draw within the coming weeks.

    Investors will continue to be updated as further developments occur.

  • 01/16/20

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

    The developer has represented that the demolition of the interior has been completed.

    The developer is still awaiting the city's historical review department to produce the final permits to begin the rest of the work.

    Investors will continue to be updated as further developments occur.

  • 11/27/19

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

    The architect has finalized the plans and they are currently being processed and reviewed by the city.

    Once approved, the developer will begin construction immediately.

    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

The Underlying Asset is a Single Family Home and an Accessory Dwelling Unit (ADU)

Fund That Flip closed the loan on this property on September 13, 2019. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $154,516 to the developer at closing for a loan to purchase of 83.5%. Fund That Flip is holding back $13,703 for 3 months of pre-paid interest.

The construction budget is $299,860. Fund That Flip will finance $257,081 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 5 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 $96,665 in equity, including an estimated $30,484 at the time of closing. The total loan-to-ARV is 58.0%. There is a 3 month pre-payment penalty, meaning investors will earn interest through December 13, 2019, 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 $185,000 $154,516 35.5%
Purch. $185,000 $154,516 35.5%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $299,860 $257,081 59.1%
Prepaid Int $13,703 $13,703 3.2%
Closing $9,700 $9,700 2.2%
Total $508,263 $435,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $185,000 $154,516 $30,484 83.5%
Purch. $185,000 $154,516 $30,484 83.5%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $299,860 $257,081 $42,779 85.7%
Prepaid Int $13,703 $0 $13,703 0.0%
Closing $9,700 $9,700 $9,700 100.0%
Total $508,263 $421,298 $96,665 82.9%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $185,000 $154,516 83.5%
FTF Valuation: $655,000 $435,000 66.4%

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 are within 0.6 miles of the subject, have a similar number of bedrooms, bathrooms, and square footage, and are of similar home style.

The internal valuation of $655,000 on the property is supported by the following data points:
• 5 properties comparable to the main house have recently sold between $275,000 and $340,000.
    • Price per square foot of these comparable properties ranges from $248 to $353.
    • Our internal valuation yielded a price per square foot of $299.
• 3 properties comparable to the ADU have recently sold between $310,000 and $329,000.
    • Price per square foot of these comparable properties ranges from $282 to $328.
    • Our internal valuation yielded a price per square foot of $314.

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 4
Year Built 1966
Square Footage 1150 SF
Purchase Price $185,000
Estimated Rehab Budget $299,860
ARV $655,000
Developer Equity $96,665 plus closing & holding costs

Market Overview


• Austin is a city in Travis County, TX

    • 1.8 miles to Roy G. Guerrero Colorado River Metro Park
    • 3.8 miles to Austin-Bergstrom International Airport
    • 5.5 miles to Downtown Austin

• Retail Sales Sold: 96%
• Short Sales Sold: 0%
• REO Sold: 4%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on September 13, 2019. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Demolition
• Foundation
• Roofing
• Siding
• Windows
• Framing
• Interior Paint
• Insulation
• Plumbing
• Electrical

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 66.4%.
• 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 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.