Status: Repaid

Annual Return Term Remaining
9% -
Loan to ARV
69.4%
Investment Offering
$170,000
Min. Investment
$5,000
Term
12 mo.
Guarantee
Personal Guarantee
Underlying Security
1st Position

This offering is fully funded

Homestead, PA Rehab

REPEAT BORROWER

Updates

  • 06/07/21

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 05/28/2021.

    You will receive the following payments related to this payoff: May 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.

  • 05/24/21

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

    The developer has represented that they are in the final stages of the refinance and they are targeting to close by the beginning of June.

    Investors will continue to be updated as further developments occur.

  • 04/14/21

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

    The developer has represented that they are finalizing the rehab and currently exploring refinancing options.

    Investors will continue to be updated as further developments occur.

  • 03/02/21

    The updated maturity date for this loan is 5/28/2021.

    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 5-8 business days.

  • 02/24/21

    Based on the inspection report, this project is at 94.14% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 02/23/21.

  • 02/23/21

    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.

  • 02/11/21

    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.

    Fund That Flip is currently reviewing the request.

    Investors will continue to be updated as further developments occur.

  • 01/08/21

    Based on the inspection report, this project is at 83.05% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 01/07/21.

  • 01/07/21

    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.

  • 12/29/20

    Earlier today Fund That Flip spoke with the developer about the current status of this project.

    The developer has represented that they are progressing with the rehab and plan on requesting a construction draw by mid-January. The developer may need an extension but will have a better idea at the end of January. We will review the request when it comes in.

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

    Investors will continue to be updated as further developments occur.

  • 11/10/20

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

    The developer has represented that they are finished with two of the six units and they are nearly done with the third unit.

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

    Investors will continue to be updated as further developments occur.

  • 09/22/20

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

    The developer has represented that the rehab is progressing and they are planning to request a construction draw in the coming weeks.

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

    Investors will continue to be updated as further developments occur.

  • 08/03/20

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

    Based on the Inspection Report this project is at 44% completion.

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

    Investors will be notified as further developments occur.

  • 07/14/20

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

    The developer has represented that construction on the property is now progressing on schedule. A construction draw request is expected in the coming weeks.

    Interest payments remain timely and current.

    Investors will continue to be updated as further developments occur.

  • 05/05/20

    Fund That Flip has been in contact with the developer on the current status of the project.

    The developer has experienced slowed progress due to restrictions from local or state ordinance due to the health crisis. The developer has represented that some interior work has been done to the property thus far.

    The developer confirmed adherence to government mandate and remains committed to the safety of their team.

    Fund That Flip will continue to regularly communicate with the developer to ensure work is progressing and will notify investors as further developments occur.

Use of Proceeds


  Cost Use of Proceeds % of Loan
At close $160,200 $130,506 76.8%
Purch. $160,200 $130,506 76.8%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $75,800 $30,754 18.1%
Prepaid Int $4,340 $4,340 2.6%
Closing $4,400 $4,400 2.6%
Total $244,740 $170,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $160,200 $130,506 $29,694 81.5%
Purch. $160,200 $130,506 $29,694 81.5%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $75,800 $30,754 $45,046 40.6%
Prepaid Int $4,340 $0 $4,340 0.0%
Closing $4,400 $4,400 $4,400 100.0%
Total $244,740 $165,660 $83,480 67.7%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $160,200 $130,506 81.5%
Appraised ARV: $250,000 $170,000 68.0%
FTF Valuation: $245,000 $170,000 69.4%

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

The internal valuation of $245,000 on the property is supported by the following data points:
• 5 comparable properties have recently sold between $175,000 and $210,000.
• Price per square foot of these comparable properties ranges from $31 to $80.
• Our internal valuation yielded a price per square foot of $53.
• Gross monthly rents are estimated at $750 for similar properties in the area.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $250,000 for the property. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation. As our internal valuation used a more conservative price per square foot.

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

About the Property


Details

Bedrooms 5
Full Bathrooms 5
Year Built 1900
Square Footage 4500 SF
Purchase Price $160,200
Estimated Rehab Budget $75,800
ARV $245,000
Current Appraised Value $150,000
Developer Equity $83,480 plus closing & holding costs

Market Overview


• Homestead is a borough in Allegheny County, PA

Homestead, PA is a part of the Monongahela River Valley and is located in the Pittsburgh metropolitan area. The Pittsburgh metropolitan area has the second largest population in Pennsylvania and is the 26th largest metropolitan area in the United States. The area is home to more than 60 colleges and universities including Carnegie Mellon University and the University of Pittsburgh. Seven Fortune 500 companies are headquartered in the greater Pittsburgh region including The Kraft Heinz Company, PNC Financial Services Group, Inc., and PPG Industries, Inc. In addition to these Fortune 500 companies, Uber’s self-driving car testing and Amazon warehouses have recently expanded to the Pittsburgh area creating an attractive job market.

Homestead lies 7 miles southeast of downtown Pittsburgh and it also sits across the river from Pittsburgh's city limit line. Pittsburgh is the principal city of the metropolitan area,. It is the region’s largest city and economic center. Pittsburgh is located at the junction of Ohio, the Allegheny, and the Monongahela rivers. The city has historically been a leader in the manufacturer of steel and is known as "the Steel City." Aside from the steel industry, there is a large presence of technology firms in Pittsburgh. Its history as an early-20th-century industrial capital is reflected in its Gilded Age sites, which includes the Carnegie Museum of Natural History, the Carnegie Museum of Art, and the Phipps Conservatory and Botanical Gardens. More modern attractions, such as the Andy Warhol Museum, Heinz Field, and PNC Bank can be found in the North Shore neighborhood.

The subject property is located:
    • 1.0 miles to The Waterfront Mall
    • 3.0 miles to Kennywood Park
    • 6.0 miles to Allegheny County Airport

• Retail Sales Sold: 100%
• Short Sales Sold: 0%
• REO Sold: 0%

  • data acquired from internal sources.

Project Strategy


The developer previously purchased this property. They received financing from Fund That Flip on February 28, 2020. Your investment will begin accruing interest the day it clears escrow.

The subject property has 6 units which consist of:
• One (1) office unit
• Five (5) 1 bedroom, 1 full bathroom residential apartment units

Construction has started and includes the following:
• New Flooring
• Kitchen and Bathroom Updates
• New Doors and Trim
• Interior Paint
• HVAC Updates
• New Fixtures

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 69.4%.
• 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 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.