Status: Repaid

Annual Return Term Remaining
8.75% -
Loan to ARV
54.7%
Investment Offering
$375,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Four Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

This offering is fully funded

Columbus, OH Condo Conversion

REPEAT BORROWER

Updates

  • 03/04/22

    Fund That Flip is happy to inform investors that proceeds have been received from the third-party purchaser who acquired the subject property at foreclosure sale action.

    There were multiple obstacles Fund That Flip worked through in managing this asset including the developer’s bankruptcy filing and eventual foreclosure case. There was a successful third-party bidder at the first foreclosure auction in July 2021. The bidder ended up not performing on the sale terms resulting in the property going back to foreclosure sale in November 2021. Once the sale was confirmed the purchaser deposited their required funds to finalize the transaction.

    Fund That Flip was able to recover the full principal balance for investors and payments should settle within the next 3-5 business days.

  • 02/03/22

    Fund That Flip recently communicated with the third-party purchaser who informed they have deposited the remaining purchase funds with the Sheriff’s Department.

    Counsel for Fund That Flip confirmed receipt of funds with the Sheriff’s Department and anticipates having funds in their possession by the week of 2/7. Upon receipt of proceeds, Fund That Flip’s Finance team will reconcile and distribute final investor proceeds.

  • 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.

  • 01/14/22

    Counsel for Fund That Flip informed the sale confirmation process has concluded and the transfer deed is currently with the Sheriff Department.

    Fund That Flip is in direct communication with the third-party purchaser, who informed they are securing funds and anticipate depositing the remainder of their purchase proceeds late next week. Once the Sheriff has the sale proceeds, they will wire to counsel. Fund That Flip anticipates finalizing the transaction by the end of January.

    Inventors will be updated as further developments occur.

  • 12/21/21

    As previously reported, the subject property was sold to a third party at the foreclosure sale auction.

    Foreclosure counsel has filed the Motion to confirm the sheriff’s sale. Once the judge confirms the foreclosure sale the buyer will be required to pay the remaining purchase price to the Sheriff, who will then transfer funds to counsel.

    Investors will be updated as further developments occur.

  • 11/23/21

    Foreclosure counsel recently informed Fund That Flip that the property sold to a third-party at the recent foreclosure sale auction.

    Counsel will now submit a court motion to confirm the foreclosure sale results. Once the sale is confirmed, the third-party purchaser will deposit sale proceeds with the Sheriff Department, who will reconcile proceeds and disburse to Fund That Flip.

    Investors will be updated as further developments occur.

  • 10/19/21

    Fund That Flip has been informed by foreclosure counsel that the Sheriff’s office requires the foreclosure sale to be rescheduled. Currently, the new sale auction is scheduled for November 19th.

    The previously forfeited buyer deposit will become available at the conclusion of the foreclosure confirmation process.

    Fund That Flip is working with a local real estate broker to monitor the property and solicit potential buyers.

    Investors will be updated as further developments occur.

  • 09/21/21

    Foreclosure counsel has confirmed the 3rd party purchaser never deposited remaining sale proceeds with the Sheriff’s office. Counsel has filed a motion to vacate the order of confirmation sale and forfeit of the purchaser’s deposit. Counsel is confirming if the foreclosure sale must be rescheduled, or title can be conveyed to FTF REO.

    Fund That Flip is engaged with a local real estate broker to monitor the property and start generating potential buyer activity.

    Investors will be updated as further developments occur.

  • 07/30/21

    Foreclosure counsel has informed Fund That Flip that all required post foreclosure sale documentation has been provided to the court and to the sheriff’s department. Currently, waiting for the successful bidder to deposit remaining purchase funds. Once the process is complete the sheriff’s office will disburse proceeds, which is projected to occur in August.

    Fund That Flip is working with a local vendor to preserve and protect the property until proceeds are received.

    Investors will be updated as further developments occur.

  • 06/29/21

    Fund That Flip was informed by counsel that the subject property sold to a 3rd party at the recently conducted foreclosure sale auction.

    The next step includes the court confirming the foreclosure sale results and the buyer depositing sale proceeds with the Sheriff Department. The entire process is expected to take approximately 45 days.

    Investors will be updated as further developments occur.

  • 05/25/21

    Fund That Flip was recently informed that the foreclosure sale auction is currently scheduled for 6/26/21.

    It was previously reported that Fund That Flip, and a prospective buyer had agreed to terms and signed a Letter of Intent for them to purchase after the foreclosure is completed. Due to the length of the foreclosure case the prospective buyer’s required purchase timeline has passed and they have withdrawn their Letter of Intent.

    Fund That Flip is engaged with a local real estate broker to establish current market value and solicit buyer interest.

    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.

  • 04/19/21

    The monthly interest payment for March 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.

  • 04/09/21

    Counsel for Fund That Flip has confirmed the court has approved the consent judgment and is now coordinating with the Sheriff’s Department towards scheduling the foreclosure sale date. Counsel anticipates the foreclosure sale date will be held within the next 45-60 days.

    Investors will be updated as further developments occur.

  • 03/09/21

    Fund That Flip has obtained the necessary relief from the borrower’s bankruptcy stay. Fund That Flip is now quickly advancing the foreclosure process as counsel has presented borrower’s counsel with the proposed stipulation and consent judgment for review and approval. Once this process is completed, Fund That Flip will move to schedule the foreclosure sale auction.

    Investors will be updated as further developments occur.

  • 02/08/21

    Fund That Flip and the prospective buyers have agreed to terms and signed a Letter of Intent for them to purchase after the foreclosure is completed. To help move this expeditiously through the courts, our counsel has filed a Motion for relief from stay; under Local Rules, the Parties have 21 days to file an objection. We have in parallel provided a proposed order signed by Debtor’s counsel and our counsel in attempt to nullify the need to wait for expiration of the full 21-day objection period.

    We will provide an update as available.

  • 12/14/20

    The borrower has stepped aside and let Fund That Flip work directly with the contractor in order to bring the rehab and buyer-requested remediations to completion.

    We have been working with both the buyer's and seller's agents displaying full transparency in an effort to bring this conveyance to close by the end of the year.

    The agents have provided not only purchase contracts, but also contract extensions. The buyer is motivated to purchase the home upon completion of the items they requested.

    Investors will continue to be updated as further developments occur.

  • 10/26/20

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

    The developer has received offers on both units and has provided Fund That Flip with the dually executed purchase contracts. They are targeting to close by the end of the year.

    Investors will continue to be updated as further developments occur.

  • 10/20/20

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

    They represented cash flow to be depleted due to various circumstances with their business, and we discussed options such as a deed in lieu in as-is condition, marketing the property in as-is condition, and completing the project. Fund That Flip believes that completing the project and selling it would yield the optimal result for our investors. We conducted a third-party inspection and an internal video tour of the property with the developer to ensure we have a full view of the current condition and scope remaining to have this property marketed to buyers. One unit is finished and staged, the other unit is close to complete, with an expected finish in mid-November.

    In our attempt to get the work completed and the project to market, Fund That Flip has agreed to push their October accrued interest payment to the payoff of the loan. We have also agreed to release draw funds to reimburse work completed in an effort to move the project along. This draw has been sent directly to the vendor to progress the work. We will assess this frequently to ensure the developer is moving quickly and getting this to market as a quality and completed project.

    Investors will continue to be updated as further developments occur.

  • 10/01/20

    The updated maturity date for this loan is 1/3/2021.

    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.

    Investors will receive their share of collected extension fees in the next 3-5 business days.

  • 09/25/20

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

    The developer has requested an extension to finalize the completion of the rehab and the refinance of the property. Fund That Flip is currently reviewing the request.

    Investors will continue to be updated as further developments occur.

  • 09/17/20

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

    Based on the Inspection Report this project is at 98% completion.

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

    Investors will be notified as further developments occur.

  • 09/09/20

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

    Based on the Inspection Report this project is at 95% completion.

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

    Investors will be notified as further developments occur.

  • 08/27/20

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

    Based on the Inspection Report this project is at 91% completion.

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

    Investors will be notified 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 87% completion.

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

    Investors will be notified 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 83% completion.

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

    Investors will be notified as further developments occur.

  • 06/29/20

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

    Based on the Inspection Report this project is at 76% completion.

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

    Investors will be notified as further developments occur.

  • 05/22/20

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

    Based on the Inspection Report this project is at 70% completion.

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

    Investors will be notified as further developments occur.

  • 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 59% completion.

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

    Investors will be notified as further developments occur.

  • 03/13/20

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

    Based on the Inspection Report this project is at 52% completion.

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

    Investors will be notified as further developments occur.

  • 02/05/20

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

    Based on the Inspection Report this project is at 40% completion.

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

    Investors will be notified as further developments occur.

  • 01/02/20

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

    Based on the Inspection Report this project is at 30% completion.

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

    Investors will be notified as further developments occur.

  • 11/26/19

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

    Based on the Inspection Report this project is at 26% 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 20% completion.

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

    Investors will be notified as further developments occur.

  • 10/28/19

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

    Based on the Inspection Report this project is at 10% 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 Four 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 $96,566 to the developer at closing for a loan to purchase of 77.3%. Fund That Flip is holding back $13,016 for 3 months of pre-paid interest.

The construction budget is $301,200. Fund That Flip will finance $252,656 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 8 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 $98,493 in equity, including an estimated $28,434 at the time of closing. The total loan-to-ARV is 54.7%. 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 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 $125,000 $96,566 25.8%
Purch. $125,000 $96,566 25.8%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $304,760 $252,656 67.4%
Prepaid Int $13,016 $13,016 3.5%
Closing $8,500 $8,500 2.3%
Total $451,276 $370,738 98.9%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $125,000 $96,566 $28,434 77.3%
Purch. $125,000 $96,566 $28,434 77.3%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $304,760 $252,656 $52,104 82.9%
Prepaid Int $13,016 $0 $13,016 0.0%
Closing $8,500 $8,500 $8,500 100.0%
Total $451,276 $357,722 $102,053 79.3%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $125,000 $96,566 77.3%
FTF Valuation: $685,000 $375,000 54.7%

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

The subject property will be converted into 4 condo units that will be sold individually. The internal aggregate valuation on the property is $685,000. The internal valuation on the left and right unit is $200,000. The internal valuation on the third floor unit is $185,000 and on the carriage house unit is $100,000. The internal valuations on each unit are supported by the following data points:
• 11 comparable properties have recently sold between $147,000 and $220,000.
• Price per square foot of these comparable properties ranges from $147 to $183.
• Our internal valuation yielded a price per square foot of $160.

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

About the Property


Details

Bedrooms 7
Full Bathrooms 4
Year Built 1916
Square Footage 4266 SF
Garage Spaces 3
Purchase Price $125,000
Estimated Rehab Budget $304,760
ARV $685,000
Developer Equity $102,053 plus closing & holding costs

Market Overview


• Columbus is a town in Franklin County, OH
    • 0.6 miles to Nationwide Children's Hospital
    • 1.8 miles to Columbus Museum of Art
    • 2.2 miles to Downtown Columbus

• Retail Sales Sold: 94%
• Short Sales Sold: 0%
• REO Sold: 6%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on October 03, 2019. The purchase price includes a $17,000 assignment fee. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Framing
• Plumbing
• Electrical
• Insulation
• Dry Wall
• Interior Paint
• Flooring
• Roofing
• Windows & Doors
• Kitchen & Bathroom remodel

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 54.7%.
• 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.