Status: Repaid

Annual Return Term Remaining
8.75% -
Loan to ARV
70.0%
Investment Offering
$280,000
Min. Investment
$5,000
Term
9 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

Updates

  • 10/30/20

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 10/21/2020.

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

    You can expect to see these funds deposited in your bank account within 3-5 business days. In addition, these payments will be view-able from your investor dashboard.

  • 10/16/20

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

    The developer has represented that they have accepted an offer on the house and are expected to close on the sale within the next couple of weeks.

    Fund That Flip will remain in contact with the developer to ensure that they are able to exit the loan successfully.

    Investors will be updated as further developments occur.

  • 09/10/20

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

    The developer has represented that the project is complete and listed for sale. They currently have a couple of offers and are deciding which one to select.

    Fund That Flip will remain in communication with the developer to understand when they have accepted a contract and when the sale is expected to close.

    Investors will continue to be updated as further developments occur.

  • 08/04/20

    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.

  • 07/07/20

    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.

    Investors will be notified as further developments occur.

  • 07/06/20

    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. The updated maturity date for this loan is 10/03/2020.

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

  • 06/05/20

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

    Based on the Inspection Report this project is at 75% completion.

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

    Investors will be notified as further developments occur.

  • 05/14/20

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

    Based on the Inspection Report this project is at 68% completion.

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

    Investors will be notified as further developments occur.

  • 04/13/20

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

    Based on the Inspection Report this project is at 63% completion.

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

    Investors will be notified as further developments occur.

  • 03/26/20

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

    The developer has represented that they are going to order another inspection in the next coming weeks.

    They also represented that the project was slightly delayed due to them having to switch project managers on this project.

    The developer continues to make up to date and timely interest payments.

    Investors will continue to be updated as further developments occur.

  • 02/06/20

    This loan has a maturity date of 07/03/2020 and is paid current.

    The rehab budget has been drawn 61.23% with the last draw occurring on 12/16/2019.

    Fund That Flip will continue to provide updates as they are available.

  • 12/18/19

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

    Based on the Inspection Report this project is at 61% completion.

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

    Investors will be notified as further developments occur.

  • 11/13/19

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

    Based on the Inspection Report this project is at 50% completion.

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

    Investors will be notified as further developments occur.

  • 10/31/19

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

    Based on the Inspection Report this project is at 40% 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

Fund That Flip closed the loan on this property on October 03, 2019. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $196,953 to the developer at closing for a loan to purchase of 84.9%. Fund That Flip is holding back $12,458 for 4 months of pre-paid interest.

The construction budget is $81,000. Fund That Flip will finance $61,167 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 4 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 $74,439 in equity, including an estimated $35,047 at the time of closing. The total loan-to-ARV is 70.0%. There is a 3 month pre-payment penalty, meaning investors will earn interest through January 03, 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 $232,000 $196,953 70.3%
Purch. $232,000 $196,953 70.3%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $90,000 $61,167 21.8%
Prepaid Int $12,458 $12,458 4.4%
Closing $7,100 $7,100 2.5%
Total $341,558 $277,677 99.2%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $232,000 $196,953 $35,047 84.9%
Purch. $232,000 $196,953 $35,047 84.9%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $90,000 $61,167 $28,833 68.0%
Prepaid Int $12,458 $0 $12,458 0.0%
Closing $7,100 $7,100 $7,100 100.0%
Total $341,558 $265,219 $83,439 77.6%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $232,000 $196,953 84.9%
Appraised ARV: $391,000 $280,000 71.6%
FTF Valuation: $400,000 $280,000 70.0%

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

The internal valuation of $400,000 on the property is supported by the following data points:
• 4 comparable properties have recently sold between $332,000 and $468,000.
• Price per square foot of these comparable properties ranges from $147 to $267.
• Our internal valuation yielded a price per square foot of $210.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $391,000 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 5
Full Bathrooms 3
Year Built 1960
Square Footage 1822 SF
Garage Spaces 2
Purchase Price $232,000
Estimated Rehab Budget $90,000
ARV $400,000
Developer Equity $83,439 plus closing & holding costs

Market Overview


• Montgomery is a city in Hamilton County, OH

    • 3.9 miles to Sharon Woods Golf Course
    • 16.3 miles to Downtown Cincinnati
    • 28.2 miles to Cincinnati/Northern Kentucky International Airport

• Retail Sales Sold: 100%
• Short Sales Sold: 0%
• REO Sold: 0%

  • data acquired from internal sources.

Project Strategy


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

Construction will begin shortly after loan closing and includes the following:
• Demolition
• Appliances
• Kitchen Cabinets
• Kitchen Countertops
• Decking
• Interior Doors
• Electrical Finishes
• Fixtures
• Refinish Hardwood Floors
• Tile Flooring

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 70.0%.
• 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 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.