Status: Repaid

Annual Return Term Remaining
8.25% -
Loan to ARV
69.4%
Investment Offering
$510,000
Min. Investment
$5,000
Term
6 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

This deal does not have an active offering

Updates

  • 07/16/20

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 07/09/2020.

    You will receive the following payments related to this payoff: June 2020 Normal Interest, July 2020 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.

  • 07/07/20

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

    The developer has represented that they have agreed to a sale of the last project in this portfolio.

    The sale is expected to close in mid to late July and Fund That Flip working to verify a copy of the purchase contract.

    The developer has also made up to date and timely interest payments.

    Investors will continue to be updated as further developments occur.

  • 05/28/20

    Fund That Flip is pleased to inform you that the loan has been partially paid off. The partial payoff date is 05/27/2020.

    The developer sold a second property in the portfolio and remitted $135,798.82 to Fund That Flip to complete a second partial payoff.

    Investors will receive a return of principal equal to 26.63% 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 work to sell the remaining property and make a full principal repayment.

  • 05/08/20

    Fund That Flip is pleased to inform you that the loan has been partially paid off. The partial payoff date is 05/01/2020.

    The developer sold one of the properties in the portfolio and remitted $104,081.63 to Fund That Flip to complete a partial payoff.

    Investors will receive a return of principal equal to 20.41% 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 work to sell the remaining properties and make a full principal repayment.

  • 03/06/20

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

    The developer is continuing to work on the projects and has completed one which is currently for sale.

    The developer has also made up to date and timely interest payments.

    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

Fund That Flip closed the loan on this property on January 15, 2020. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $497,711 to the developer at closing for a loan to purchase of 91.6%.

The true purchase price of each subject property is as follows:
• 3808 Strandhill Rd: $66,000
• 3159 Chelsea Dr: $50,000
• 3825 Acorn: $285,000

The rehab budgets for each subject property were as follows:
• 3808 Strandhill Rd: $24,600
•3159 Chelsea Dr: $61,550
• 3825 Acorn: $90,000

The adjusted cost for the portfolio is $543,625.

Over the course of the project, the developer will contribute an estimated $91,678 in equity, including an estimated $45,914 at the time of closing. The total loan-to-ARV is 69.4%. There is a 3 month pre-payment penalty, meaning investors will earn interest through April 15, 2020, even if paid back earlier. The term of the underlying loan is 6 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 $543,625 $497,711 97.6%
Purch. $543,625 $497,711 97.6%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $33,475 $0 0.0%
Prepaid Int $2,589 $2,589 0.5%
Closing $9,700 $9,700 1.9%
Total $589,389 $510,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $543,625 $497,711 $45,914 91.6%
Purch. $543,625 $497,711 $45,914 91.6%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $33,475 $0 $33,475 0.0%
Prepaid Int $2,589 $0 $2,589 0.0%
Closing $9,700 $9,700 $9,700 100.0%
Total $589,389 $507,411 $91,678 86.1%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $543,625 $497,711 91.6%
Appraised ARV: $827,000 $510,000 61.7%
FTF Valuation: $735,000 $510,000 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 2.1 miles of the subject, have a similar number of bedrooms, bathrooms, and square footage, and are of similar home style.

The internal valuation of $120,000 for 3808 Strandhill is supported by the following data points:
• 10 comparable properties have recently sold between $92,000 and$169,000.
• Price per square foot of these comparable properties ranges from $71 to $105.
• Our internal valuation yielded a price per square foot of $84.

The internal valuation of $155,000 on 3159 Chelsea is supported by the following data points:
• 4 comparable properties have recently sold between $140,000 and$170,000.
• Price per square foot of these comparable properties ranges from $74 to $101.
• Our internal valuation yielded a price per square foot of $88.

The internal valuation of $460,000 on 3825 Acorn Trail is supported by the following data points:
• 6 comparable properties have recently sold between $360,000 and $500,000.
• Price per square foot of these comparable properties ranges from $152 to $196.
• Our internal valuation yielded a price per square foot of $195.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $827,000 for the property. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation. The appraised values of each subject property are as follows:
• 3808 Strandhill Rd:$180,000
• 3159 Chelsea Dr: $140,000
• 3825 Acorn Trail: $507,000

In review of the appraisal, Fund That Flip noted the following items:
• The appraisal includes comps not in close proximity to the subject property (1.30 outside of 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's final As Repaired Condition.
• The appraisal includes comps that sold outside of 12 months.

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

About the Property


Details

Purchase Price $543,625
Estimated Rehab Budget $33,475
ARV $735,000
Current Appraised Value $735,000
Developer Equity $91,678 plus closing & holding costs

Market Overview


3808 Strandhill Rd
• Cleveland is a town in Cuyahoga County, OH
    • 1.5 miles to Cleveland Clinic - South Pointe Hospital
    • 3.7 miles to John Carroll University
    • 6.4 miles to Beachwood Place

• Retail Sales Sold: 83%
• Short Sales Sold: 0%
• REO Sold: 17%

3159 Chelsea Dr
• Cleveland Heights is a city in Cuyahoga County, OH
The subject property is located:
    • 2.9 miles to Case Western Reserve University
    • 5.2 miles to Beachwood Place
    • 7.1 miles to St. Vincent Charity Medical Cente

• Retail Sales Sold:90 %
• Short Sales Sold: 1%
• REO Sold: 9%

3825 Acorn
• Chagrin Falls is a town in Cuyahoga County, OH
    • 1.9 miles to Pinecrest
    • 5.4 miles to Cleveland Clinic - Hillcrest Hospital
    • 5.7 miles to John Carroll University

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

  • data acquired from internal sources.

Project Strategy


The developer previously bought these properties and construction is almost complete. They obtained financing from Fund That Flip on January 15, 2020. Your investment will begin accruing interest the day it clears escrow.

Construction is complete and included the following:
• Interior and Exterior Paint
• Kitchen and Bathroom Updates
• New Flooring
• Landscaping
• New Doors
• Electrical, Plumbing, and HVAC Updates

The full statement of work is available below.

The specs of each property are as follows:

•3808 Strandhill Rd, Cleveland, OH 44128
    • Bedrooms: 4
    • Bathrooms: 1
    • Square Footage: 1426

•3159 Chelsea Dr, Cleveland Hts, OH 44118
    • Bedrooms: 3
    • Bathrooms: 1.5
    • Square Footage: 1755

• 3825 Acorn Trail, Chagrin Falls, OH 44022
    • Bedrooms: 3
    • Bathrooms: 3.5
    • Square Footage: 2358

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 6 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.