Status: Repaid

Annual Return Term Remaining
8.75% -
Loan to ARV
69.6%
Investment Offering
$1,475,000
Min. Investment
$5,000
Term
12 mo.
Guarantee
Personal Guarantee
Underlying Security
1st Position

This deal does not have an active offering

Cleveland, OH New Construction

REPEAT BORROWER

Updates

  • 07/12/21

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 07/02/2021.

    You will receive the following payments related to this payoff: June 2021 Normal Interest, July 2021 Partial Normal Interest, 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.

  • 06/15/21

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

    The developer has represented that they have additional units under contract and plan on repaying the loan before maturity. Fund That Flip has requested copies of the executed purchase contracts to verify the sales.

    Investors will continue to be updated as further developments occur.

  • 05/06/21

    Fund That Flip is pleased to inform you that the loan has been partially paid off. The partial payoff date is 04/30/2021.

    The developer has sold 3 of the units in the portfolio and remitted $880,796.03 to Fund That Flip to complete a partial payoff.

    Investors will receive a return of principal equal to 61.77% of their original holding in this offering. Investor holdings have also been updated to reflect these partial repayments.

    You can expect to see these funds deposited in your bank account within 5-8 business days.

    In addition, Fund That Flip will remain in close contact with the developer while they continue to progress on the rehab of the remaining units and make a full principal repayment.

  • 04/12/21

    Based on the inspection report, this project is at 96.35% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 04/09/21.

  • 04/09/21

    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.

  • 03/05/21

    Based on the inspection report, this project is at 92.0% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 03/04/21.

  • 03/04/21

    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.

  • 03/04/21

    The updated maturity date for this loan is 8/12/2021.

    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 six months.

    Investors will receive their share of collected extension fees in the next 5-8 business days.

  • 01/27/21

    Based on the inspection report, this project is at 71.92% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 01/26/21.

  • 01/26/21

    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.

  • 12/21/20

    Based on the inspection report, this project is at 63.15% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 12/18/20.

  • 12/17/20

    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.

  • 11/16/20

    Based on the inspection report, this project is at 56.25% complete.
    Fund That Flip has processed a construction draw to reimburse developer expenses on 11/13/20

  • 11/13/20

    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 ordered an inspection of this property to monitor the progress.

    Based on the Inspection Report this project is at 43% completion.

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

    Investors will be notified 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 41% completion.

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

    Investors will be notified as further developments occur.

  • 08/10/20

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

    Based on the Inspection Report this project is at 34% completion.

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

    Investors will be notified as further developments occur.

  • 07/20/20

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

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

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

    Investors will be notified as further developments occur.

  • 06/24/20

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

    Based on the Inspection Report this project is at 19% completion.

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

    Investors will be notified as further developments occur.

  • 06/10/20

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

    The developer has represented that they have continued to make progress on the rehab and plan on requesting a construction draw in the coming weeks.

    Investors will continue to be updated as further developments occur.

  • 05/06/20

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

    The developer has presold one of the units and provided us with the fully executed contract.

    Investors will continue to be updated as further developments occur.

  • 05/01/20

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

    Based on the Inspection Report this project is at 7% completion.

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

    Investors will be notified as further developments occur.

  • 04/23/20

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

    The developer has represented that they are targeting the foundation to be complete within the next week.

    They plan on requesting a draw shortly after.

    Investors will continue to be updated as further developments occur.

Use of Proceeds


  Cost Use of Proceeds % of Loan
At close $108,000 $72,813 4.9%
Purch. $108,000 $72,813 4.9%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $1,533,358 $1,344,613 91.2%
Prepaid Int $39,825 $39,825 2.7%
Closing $17,750 $17,750 1.2%
Total $1,698,933 $1,475,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $108,000 $72,813 $35,188 67.4%
Purch. $108,000 $72,813 $35,188 67.4%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $1,533,358 $1,344,613 $188,746 87.7%
Prepaid Int $39,825 $0 $39,825 0.0%
Closing $17,750 $17,750 $17,750 100.0%
Total $1,698,933 $1,435,175 $281,508 84.5%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $108,000 $72,813 67.4%
Appraised ARV: $2,466,500 $1,475,000 59.8%
FTF Valuation: $2,120,000 $1,475,000 69.6%

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

The internal valuation of $190,000 on Unit 1 is supported by the following data points:
• 9 comparable properties have recently sold between $102,000 and $370,000.
• Price per square foot of these comparable properties ranges from $140 to $296.
• Our internal valuation yielded a price per square foot of $226.

The internal valuation of $165,000 on Unit 2 is supported by the following data points:
• 9 comparable properties have recently sold between $102,000 and $370,000.
• Price per square foot of these comparable properties ranges from $140 to $296.
• Our internal valuation yielded a price per square foot of $227.

The internal valuation of $320,000 on Unit 3 is supported by the following data points:
• 9 comparable properties have recently sold between $302,000 and $334,000.
• Price per square foot of these comparable properties ranges from $219 to $242.
• Our internal valuation yielded a price per square foot of $231.

    Additionally, Unit 3 has been pre-sold.
    • Contract Price: $370,920
     • $10,000 initial deposit from buyer

The internal valuation of $320,000 on Unit 4 is supported by the following data points:
• 9 comparable properties have recently sold between $302,000 and $334,000.
• Price per square foot of these comparable properties ranges from $219 to $242.
• Our internal valuation yielded a price per square foot of $229.

The internal valuation of $565,000 on Unit 5 is supported by the following data points:
• 8 comparable properties have recently sold between $433,000 and $670,000.
• Price per square foot of these comparable properties ranges from $215 to $328.
• Our internal valuation yielded a price per square foot of $248.

The internal valuation of $560,000 on Unit 6 is supported by the following data points:
• 8 comparable properties have recently sold between $433,000 and $670,000.
• Price per square foot of these comparable properties ranges from $215 to $328.
• Our internal valuation yielded a price per square foot of $247.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $2,466,500 for the property. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $2,466,500 for the entire building. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation. The appraised values of each unit are as follows:
• Unit 1: $270,500
• Unit 2: $269,000
• Unit 3:$366,000
• Unit 4: $366,000
• Unit 5: $596,000
• Unit 6: $599,000

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 1.5 miles).
• 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.

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

About the Property


Details

Bedrooms 10
Full Bathrooms 10
Year Built 2020
Square Footage 8890 SF
Garage Spaces 8
Purchase Price $108,000
Estimated Rehab Budget $1,533,358
ARV $2,120,000
Current Appraised Value $110,000
Developer Equity $281,508 plus closing & holding costs

Market Overview


• Cleveland is a town in Cuyahoga County, OH
    • 0.8 miles to West Side Market
    • 1.4 miles to Downtown Cleveland, OH
    • 1.6 miles to Edgewater Park Beach

• Retail Sales Sold: 88%
• Short Sales Sold: 0%
• REO Sold: 12%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on February 12, 2020. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Lay Foundation
• Framing and Insulation
• Roof
• Siding and Masonry
• Doors and Windows
• Electrical, Plumbing, and HVAC
• Drywall
• Elevator
• Paint
• Flooring
• Kitchens and Bathrooms
• Roof Deck

The full statement of work is available below.

The specs of each unit are as follows:

•Unit 1
    • Bedrooms: 1
    • Bathrooms: 1
    • Square Footage: 840

•Unit 2
    • Bedrooms: 1
    • Bathrooms: 1
    • Square Footage:726

•Unit 3
    • Bedrooms: 2
    • Bathrooms: 2
    • Square Footage: 1385

•Unit 4
    • Bedrooms: 2
    • Bathrooms: 2
    • Square Footage: 1,400

•Unit 5
    • Bedrooms: 2
    • Bathrooms: 2.5
    • Square Footage: 2,276

•Unit 6
    • Bedrooms: 2
    • Bathrooms: 2.5
    • Square Footage: 2,263

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 69.6%.
• 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.