Status: Repaid

Annual Return Term Remaining
8.75% -
Loan to ARV
66.7%
Investment Offering
$90,000
Min. Investment
$5,000
Term
9 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

This deal does not have an active offering

Lexington, KY Cash Out

REPEAT BORROWER

Updates

  • 01/20/22

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 01/06/2022.

    To help secure a timely final payoff, Fund That Flip made the decision to proactively grant an extension fee from October 29th, 2020 to payoff.

    You will receive the following payments related to this payoff: December 2021 Normal Interest, January 2022 Partial Normal Interest, 1 Extension Fee, 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.

  • 12/20/21

    Fund That Flip recently communicated with the developer regarding their exit timeline.

    The developer is representing they have entered into a Purchaser Agreement with a party to acquire the subject property and adjoining property. The developer informs they are expecting to close the first week of January 2022. Fund That Flip has requested a copy of the executed Purchase Agreement to confirm the transaction.

    Investors will be updated as further developments occur.

  • 12/03/21

    Fund That Flip recently communicated with the developer regarding their project exit timeline.

    The developer informed they are finishing a new roof repair and remediating city violations including debris clean up, mowing and install a new fence.

    The developer represented they have been in negotiations with a neighboring property owner but need to the clear city violations. In additional, the developer plans to begin advertising the week of 12/6. Developer is optimistic they will secure a purchase agreement before end of the month.

    The developer continues to service their monthly debt service payment.

    Investors will be updated as further developments occur.

  • 11/04/21

    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. A late fee for this payment has been assessed and will be distributed at payoff.

    You can expect to see the funds deposited in your account within 3-5 business days.

    Investors will be updated as further developments occur.

  • 10/29/21

    Fund That Flip has communicated with the developer regarding their project exit.

    The developer closed on their other project in mid-October but did not yield sufficient proceeds to pay off the subject loan. The developer has removed the current tenant from the property and privately marketing to area developers with an adjoining vacant lot they own.

    Fund That Flip has informed the developer they have 30 days to secure a buyer, or Fund That Flip with initiate the foreclosure process to maintain pressure to exit.

    The developer continues to service their monthly debt service payment.

    Investors will be updated as further developments occur.

  • 09/10/21

    Fund That Flip recently communicated with the developer regarding their project exit.

    As previously reported, the developer has a dependency on selling another project and utilizing sale proceeds to pay off the subject loan.

    Regarding the other project - the developer informed the previously report Purchase Agreement fell through due to a home sale contingency and the buyer’s inability to secure financing.

    The developer recently reduced the listed price to stimulate buyer activity. Fund That Flip spoke with the listing broker earlier today, who indicated they were informed by a selling agent that a purchase offer was forthcoming.

    The developer continues to service their monthly debt service payment.

    Investors will be updated as further developments occur.

  • 08/06/21

    Fund That Flip recently communicated with the developer regarding their project exit.

    As previously reported, the developer has a dependency on selling another project and utilizing sale proceeds to pay off the subject loan.

    Regarding the other project, the developer has informed they have accepted a Purchase Agreement and the buyers are currently completing their home inspection due diligence.

    The developer continues to service their monthly debt service payment.

    Investors will be updated as further developments occur.

  • 06/29/21

    Fund That Flip recently communicated with the developer regarding their project exit.

    As previously reported, the developer has a dependency on selling another project and utilizing sale proceeds to pay off the subject loan.

    Regarding the other project, the developer confirmed they have completed a few minor repairs and lightly staged per the new listing broker’s recommendation. The property has been relisted at a slightly reduced list price that should generate offers.

    The developer continues to make monthly debt service payments.

    Investors will be updated as further developments occur.

  • 05/28/21

    Fund That Flip has been in communication with the developer regarding their project exit.

    The developer informed that the previously represented potential buyer for the subject property and adjoining lot never materialized, as both sides could not agree on value.

    The developer now requires the sale proceeds from another project to payoff the subject project. The other project is currently on market and receiving a good amount of showing activity.

    Investors will continue to be updated as further developments occur.

  • 04/09/21

    Fund That Flip recently communicated with the developer regarding the status of their project exit.

    The developer’s original strategy was to utilize sale proceeds from another project to payoff this project.

    The developer informed their revised strategy is to sell the subject property with an adjoining vacate parcel. Currently, the developer is engaged with a local home builder on a potential sale.

    Investor’s will continue to be updated as further developments occur.

  • 02/23/21

    Fund That Flip has been in communication with the developer regarding the project exit.

    As previously reported, the developer’s strategy is to utilize proceeds from the sale of another project to payoff this loan.

    Regarding the other property, the developer has recently completed a punch list of repairs to improve the marketability. New marketing photos have been completed. The developer has a few shows scheduled for this week and anticipates receiving a purchase offer.

    The developer continues to service their monthly interest payment on time.

    Investors will continue to be updated as further developments occur.

  • 01/22/21

    Fund That Flip has been in communication with the developer regarding the project exit status.

    Per developer the property is currently rented, and they plan to utilize sales proceeds from another project to payoff this loan. The other project has been completed and currently on the market.

    To maintain pressure on the developer, Fund That Flip has issued a Notice of Default.

    Investors will continue to be updated as further developments occur.

  • 11/11/20

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

    Fund That Flip has ordered an inspection to monitor the status of the property and to confirm the property is being rented. We are currently working with the developer to understand the timeline to refinance and are considering an extension in order for the borrower to close on the refinance.

    Timely interest payments continue to be made on a monthly basis.

    Investors will continue to be updated as further developments occur.

  • 09/28/20

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

    This property is still being rented and the developer has represented that they have begun the search for a refinance lender, but do not have any lender commitments as of yet.

    Timely interest payments continue to be made on a monthly basis, and we expect next month's payment to be made on time as well.

    Investors will continue to be updated as further developments occur.

  • 08/10/20

    The updated maturity date for this loan is 10/28/2020.

    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.

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

  • 07/07/20

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

    This property is currently being rented and the developer has requested an extension to repay this loan. Fund That Flip is currently reviewing the request.

    Timely interest payments continue to be made on a monthly basis.

    Investors will continue to be updated as further developments occur.

  • 06/03/20

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

    The developer has represented that they plan to repay this loan with the proceeds from another closing in the coming months.

    Timely interest payments continue to be made on a monthly basis.

    Investors will continue to be updated as further developments occur.

  • 03/23/20

    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 10 business days.

    We do not anticipate another late payment being made as this was just an oversight from the borrower.

    Investors will be updated as further developments occur.

  • 03/16/20

    The monthly interest payment for February 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.

  • 01/22/20

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

    The developer has represented that he still plans on repaying this loan by the maturity date.

    Investors will continue to be updated as further developments occur.

Investment Summary


Type No Rehab/No Construction
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee x2

Fund That Flip closed the loan on this property on October 28, 2019. Your investment will begin accruing interest on the day it clears escrow.

The purchase price of $72,500 is not the true purchase price of the property. The property was purchased for $52,500 and has been updated with an approximate $20,000 rehab budget. The borrower purchased the property in May 2016. Based on the time frame that the property was purchased, Fund That Flip decided to lend off of the as-is value.

Fund That Flip has provided a first distribution of $84,390 to the developer at closing. Fund That Flip is holding back $2,585 for 3 months of pre-paid interest.

The total loan-to-ARV is 66.7%. There is a 3 month pre-payment penalty, meaning investors will earn interest through January 28, 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 $72,500 $84,390 93.8%
Purch. $72,500 $84,390 93.8%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $1 $0 0.0%
Prepaid Int $2,585 $2,585 2.9%
Closing $3,025 $3,025 3.4%
Total $78,111 $90,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $72,500 $84,390 -$11,890 116.4%
Purch. $72,500 $84,390 -$11,890 116.4%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $1 $0 $1 0.0%
Prepaid Int $2,585 $0 $2,585 0.0%
Closing $3,025 $3,025 $3,025 100.0%
Total $78,111 $87,415 -$6,279 111.9%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $72,500 $84,390 116.4%
Appraised ARV: $112,000 $90,000 80.4%
FTF Valuation: $135,000 $90,000 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 0.98 miles of the subject, have a similar number of bedrooms, bathrooms, and square footage, and are of similar home style.

The internal valuation of $135,000 on the property is supported by the following data points:
• 5 comparable properties have recently sold between $110,000 and $174,000.
• Price per square foot of these comparable properties ranges from $86 to $122.
• Our internal valuation yielded a price per square foot of $95.
• Gross monthly rents are estimated at $1000 for similar properties in the area.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $112,000 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:
• The appraisal includes comps not in close proximity to the subject property (outside of 1.75 miles).
• The appraisal includes comps that were significantly smaller than the subject property

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 1952
Square Footage 1415 SF
Garage Spaces 2
Purchase Price $72,500
Estimated Rehab Budget $1
ARV $135,000
Current Appraised Value $112,000
Developer Equity -$6,279 plus closing & holding costs

Market Overview


• Lexington is a town in Fayette County, KY
    • 2.6 miles to Idle Hour Country Club
    • 3.9 miles to the University of Kentucky
    • 4.9 miles to Rupp Arena

• Retail Sales Sold: 97%
• Short Sales Sold: 0%
• REO Sold: 3%

  • data acquired from internal sources.

Project Strategy


The developer previously purchased this property and completed rehab. They obtained financing from Fund That Flip on October 28, 2019. Your investment will begin accruing interest the day it clears escrow.

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.