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.