Status: Repaid

Annual Return Term Remaining
8.75% -
Loan to ARV
66.7%
Investment Offering
$350,000
Min. Investment
$5,000
Term
9 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

This offering is fully funded

Cincinnati, OH Rehab

REPEAT BORROWER

This fix and flip project with 3 bedrooms in Cincinnati, OH, was funded with a short-term residential rehab loan by private money lender Fund That Flip.

Updates

  • 01/07/22

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 12/28/2021.

    In order to help secure a final payoff, Fund That Flip retroactively granted an extension fee from July 3, 2021 - December 3, 2021.

    You will receive the following payments related to this payoff: December 2021 Partial Normal Interest, December 2021 Partial Penalty Interest, 2 Extension 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.

  • 09/22/21

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

    The developer has represented that they have secured a buyer and are working to finalize a sale. The sale is expected to close within the next 3-4 weeks.

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

    Investors will be updated as further developments occur.

  • 07/21/21

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

    The developer has represented that they are negotiating an offer on the property and hope to have it finalized shortly. Fund That Flip has chosen to not extend the loan at this time and instead collect the penalty interest on the payoff statement.

    The developer is aware that the loan is past maturity and is working to exit the loan as quickly as possible.

    Investors will be updated as further developments occur.

  • 05/13/21

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

    The developer has represented that they are still working to sell the project. They have had some interested parties put in some lower offers, however, they have not accepted one to this point.

    They have also continued to make up-to-date and timely interest payments.

    Investors will be updated as further developments occur.

  • 03/30/21

    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 a sale of the project.

    Fund That Flip has verified that the borrower has completed the rehab on this project. The property is currently for sale.

    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 an additional three months. The updated maturity date for this loan is 7/03/2021.

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

  • 03/30/21

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

    The developer has represented that the sale of the property has fallen through and they need additional time to secure a new buyer.

    Fund That Flip is working with the developer to extend the loan so that they can close on a sale with the loan in good standing.

    The extension is expected to be completed within the next two weeks.

    Investors will be updated as further developments occur.

  • 03/10/21

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

    The developer has represented that they have found a buyer and are working to close on the sale. The sale is expected to close in early April.

    Fund That Flip will continue working with the developer to understand the status of their closing and ensure a successful exit.

    Investors will be updated as further developments occur.

  • 01/25/21

    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 a sale of the project.

    Fund That Flip has verified that the borrower has completed the rehab on this project. The property is currently for sale.

    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 an additional three months. The updated maturity date for this loan is 4/3/2021.

    Investors will receive their share of collected extension fees within 5-7 business days.

    Listing: https://www.zillow.com/homedetails/6750-Fair-Acres-Ln-Cincinnati-OH-45213/34312801_zpid/

  • 12/14/20

    Based on the inspection report, this project is at 100.0% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 12/11/20.

  • 12/07/20

    Based on the inspection report, this project is at 98.33% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 12/04/20.

  • 12/04/20

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

    We are currently reviewing the inspection report to determine how much of the rehab has been completed.

  • 11/25/20

    Based on the inspection report, this project is at 95.22% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 11/24/20.

  • 11/24/20

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

    We are currently reviewing the inspection report to determine how much of the rehab has been completed.

  • 10/08/20

    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 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 1/03/2021.

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

  • 09/28/20

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

    The developer has represented that they need additional time to complete and sell the project.

    Fund That Flip is currently working to finalize an extension with the developer.

    Investors will continue to 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 rehab will be completed within a few weeks and should sell shortly after.

    Fund That Flip will remain in communication with the developer to understand if they will need additional time to sell the project. This loan may be eligible for an extension.

    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 85% 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 74% 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.

  • 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 62% completion.

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

    Investors will be notified as further developments occur.

  • 04/20/20

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

    Based on the Inspection Report this project is at 56% completion.

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

    Investors will be notified as further developments occur.

  • 03/17/20

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

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

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

    Investors will be notified as further developments occur.

  • 02/21/20

    This loan has a maturity date of 7/3/2020.

    The developer is paid current but has not requested a construction draw yet.

    The Fund That Flip team is in communication with the developer to understand the construction progress and to coordinate an inspection of the property.

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

  • 01/02/20

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

    The rehab budget has been drawn 32.42% with the last draw occurring on 11/05/2019.

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

  • 11/06/19

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

    Based on the Inspection Report this project is at 32% 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 $262,309 to the developer at closing for a loan to purchase of 85.4%. Fund That Flip is holding back $15,573 for 4 months of pre-paid interest.

The construction budget is $90,000. Fund That Flip will finance $61,158 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 $97,605 in equity, including an estimated $44,691 at the time of closing. The total loan-to-ARV is 66.7%. 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 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 $307,000 $262,309 74.9%
Purch. $307,000 $262,309 74.9%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $90,000 $61,158 17.5%
Prepaid Int $15,573 $15,573 4.4%
Closing $8,500 $8,500 2.4%
Total $421,073 $347,540 99.3%

Loan to Cost

  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $307,000 $262,309 $44,691 85.4%
Purch. $307,000 $262,309 $44,691 85.4%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $90,000 $61,158 $28,842 68.0%
Prepaid Int $15,573 $0 $15,573 0.0%
Closing $8,500 $8,500 $8,500 100.0%
Total $421,073 $331,968 $97,605 78.8%

Valuation

Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $307,000 $262,309 85.4%
Appraised ARV: $550,000 $350,000 63.6%
FTF Valuation: $525,000 $350,000 66.7%

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

The internal valuation of $525,000 on the property is supported by the following data points:
• 5 comparable properties have recently sold between $495,000 and $600,000.
• Price per square foot of these comparable properties ranges from $160.04 to $181.76.
• Our internal valuation yielded a price per square foot of $175.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $550,000 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:
• After reviewing the borrower’s previous completed projects, we concluded the comps used in our internal valuation will be a more representative portrayal of the subject property's final As Repaired Condition.

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

About the Property

Details

Bedrooms 3
Full Bathrooms 2
Year Built 1962
Square Footage 2168 SF
Garage Spaces 2
Purchase Price $307,000
Estimated Rehab Budget $90,000
ARV $525,000
Current Appraised Value $375,000
Developer Equity $97,605 plus closing & holding costs

Market Overview

• Cincinnati is a city in Hamilton County, OH

    • 5 miles to Xavier University
    • 8 miles to University of Cincinnati
    • 15 miles to Downtown Cincinnati

• Retail Sales Sold: 94%
• Short Sales Sold: 3%
• REO Sold: 3%

  • 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:
• Electrical updates
• HVAC
• Plumbing updates
• Carpet
• New kitchen
• New flooring
• Basement waterproofing
• Interior painting
• Gutters
• Drywall repairs

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 66.7%.
• 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 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.