Status: Repaid

Annual Return Term Remaining
12% -
Loan to ARV
68.4%
Investment Offering
$260,000
Min. Investment
$5,000
Term
9 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

Updates

  • 09/08/20

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 09/01/2020.

    You will receive the following payments related to this payoff: August 2020 Normal Interest, September 2020 Partial Normal Interest, 2 Late Fees, 1 Extension Fee, 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.

  • 08/18/20

    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 a sale of the project. Fund That Flip has verified that the borrower has completed the rehab on this project.

    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 10/21/2020.

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

  • 06/25/20

    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.

  • 05/18/20

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

    Based on the Inspection Report this project is at 71% completion.

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

    Investors will be notified as further developments occur.

  • 05/18/20

    Fund That Flip is pleased to inform you that the 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 account within 3-5 business days.

    Investors will be updated as further developments occur.

  • 05/13/20

    The monthly interest payment for April 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.

  • 04/14/20

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

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

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

    Investors will be notified as further developments occur.

  • 03/05/20

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

    The developer has represented that construction is progressing as scheduled, and a construction draw will be requested in the coming weeks.

    Investors will continue to be updated as further developments occur.

  • 01/16/20

    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.

  • 12/10/19

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

    Based on the Inspection Report this project is at 21% 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 x2

Fund That Flip closed the loan on this property on October 21, 2019. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $89,006 to the developer at closing for a loan to purchase of 74.2%. Fund That Flip is holding back $7,294 for 3 months of pre-paid interest.

The construction budget is $182,500. Fund That Flip will finance $157,500 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 $69,489 in equity, including an estimated $30,994 at the time of closing. The total loan-to-ARV is 68.4%. There is a 3 month pre-payment penalty, meaning investors will earn interest through January 21, 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 $120,000 $89,006 34.2%
Purch. $120,000 $89,006 34.2%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $151,184 $157,500 60.6%
Prepaid Int $7,294 $7,294 2.8%
Closing $6,200 $6,200 2.4%
Total $284,678 $260,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $120,000 $89,006 $30,994 74.2%
Purch. $120,000 $89,006 $30,994 74.2%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $151,184 $157,500 -$6,316 104.2%
Prepaid Int $7,294 $0 $7,294 0.0%
Closing $6,200 $6,200 $6,200 100.0%
Total $284,678 $252,706 $38,173 88.8%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $120,000 $89,006 74.2%
Appraised ARV: $397,000 $260,000 65.5%
FTF Valuation: $380,000 $260,000 68.4%

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

The internal valuation of $380,000 on the property is supported by the following data points:
• 9 comparable properties have recently sold between $265,000 and $417,000.
• Price per square foot of these comparable properties ranges from $150 to $200.
• Our internal valuation yielded a price per square foot of $187.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $397,000 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 3
Year Built 1900
Square Footage 2032 SF
Garage Spaces 2
Purchase Price $120,000
Estimated Rehab Budget $151,184
ARV $380,000
Current Appraised Value $92,000
Developer Equity $38,173 plus closing & holding costs

Market Overview


• Columbus is a city in Franklin County, OH

    • 1 miles to Downtown Columbus
    • 4 miles to The Ohio State University
    • 5 miles to John Glenn Columbus International Airport

• Retail Sales Sold: 84%
• Short Sales Sold: 0%
• REO Sold: 16%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on October 21, 2019. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Demolition
• Framing
• Drywall
• Flooring
• HVAC Updates
• Plumbing Updates
• Electrical Updates
• Exterior Updates
• New Garage
• Landscaping

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 68.4%.
• 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 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.