Status: Repaid

Annual Return Term Remaining
8.25% -
Loan to ARV
67.0%
Investment Offering
$1,072,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x3
Underlying Security
1st Position

This offering is fully funded

Wellesley, MA

REPEAT BORROWER

This fix and flip project with 4 bedrooms in Wellesley, MA, was funded with a short-term residential rehab loan by private money lender Fund That Flip.

Updates

  • 01/21/22

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 01/13/2022.

    You will receive the following payments related to this payoff: December 2021 Normal Interest, January 2021 Partial Normal Interest, 1 Extension Fee, 5 Late Fees (may vary depending on accrual date), 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.

  • 01/18/22

    Fund That Flip is pleased to inform you that a 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.

  • 12/17/21

    The monthly interest payment for November has not yet been received.

    A late fee has been assessed and will be distributed according to the 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.

  • 12/02/21

    Based on the inspection report, this project is at 64.63% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 12/01/21.

  • 12/01/21

    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.

  • 11/09/21

    Based on the inspection report, this project is at 56.27% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 11/08/21.

  • 11/08/21

    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.

  • 11/03/21

    The updated maturity date for this loan is 5/5/2022.

    The developer has requested a loan extension to finalize the completion of the construction 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 at time of payoff.

  • 10/08/21

    Based on the inspection report, this project is at 44.9% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 10/07/21.

  • 10/07/21

    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.

  • 09/29/21

    Based on the inspection report, this project is at 35.59% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 09/28/21.

  • 09/27/21

    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.

  • 08/23/21

    Fund That Flip is pleased to inform you that a 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.

  • 08/23/21

    Based on the inspection report, this project is at 15.94% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 08/20/21.

  • 08/20/21

    The monthly interest payment for July has not yet been received.
    A late fee has been assessed and will be distributed according to the 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.

  • 08/20/21

    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.

  • 08/04/21

    Fund That Flip is pleased to inform you that a 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.

  • 07/20/21

    The monthly interest payment for June has not yet been received.
    A late fee has been assessed and will be distributed according to the 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.

  • 07/19/21

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

    The developer has represented that they have 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.

  • 06/08/21

    Based on the inspection report, this project is at 7.58% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 06/07/21.

  • 06/07/21

    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.

  • 04/27/21

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

    The developer has represented that all outstanding issues with the utility companies have since been resolved and they are now working on obtaining the remaining necessary permits.

    Investors will continue to be updated as further developments occur.

  • 02/12/21

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

    The developer has represented that they are still working with the utility companies as well as the municipality on obtaining all of the necessary permits.

    They are targeting to begin construction by the end of March.

    Investors will continue to be updated as further developments occur.

  • 12/22/20

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

    The developer has the plans and survey complete, and has some demo complete as well. They plan on requesting a construction draw in the coming weeks.

    Investors will continue to be updated as further developments occur.

Investment Summary

Type New Construction
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee x3

Fund That Flip closed the loan on this property on November 05, 2020. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $496,931 to the developer at closing for a loan to purchase of 75.3%. Fund That Flip is holding back $36,269 for 3 months of pre-paid interest.

The construction budget is $580,200. Fund That Flip will finance $515,860 of the total construction budget, [which includes a small contingency amount above the estimated rehab 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 5 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 $286,619 in equity, including an estimated $163,069 at the time of closing. The total loan-to-ARV is 67.0%. There is a 3 month pre-payment penalty, meaning investors will earn interest through February 05, 2021, even if paid back earlier. The term of the underlying loan is 12 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 $660,000 $496,931 46.4%
Purch. $660,000 $496,931 46.4%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $580,200 $515,860 48.1%
Prepaid Int $36,269 $36,269 3.4%
Closing $22,940 $22,940 2.1%
Total $1,299,409 $1,072,000 100.0%

Loan to Cost

  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $660,000 $496,931 $163,069 75.3%
Purch. $660,000 $496,931 $163,069 75.3%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $580,200 $515,860 $64,340 88.9%
Prepaid Int $36,269 $0 $36,269 0.0%
Closing $22,940 $22,940 $22,940 100.0%
Total $1,299,409 $1,035,731 $286,619 79.7%

Valuation

Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $660,000 $496,931 75.3%
FTF Valuation: $1,600,000 $1,072,000 67.0%

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

The internal valuation of $1,600,000 on the property is supported by the following data points:
• 4 comparable properties have recently sold between $1,160,000 and $1,900,000.
• Price per square foot of these comparable properties ranges from $314 to $446.
• Our internal valuation yielded a price per square foot of $438.

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

About the Property

Details

Bedrooms 4
Full Bathrooms 4
Year Built 2020
Square Footage 3650 SF
Garage Spaces 2
Purchase Price $660,000
Estimated Rehab Budget $580,200
ARV $1,600,000
Developer Equity $286,619 plus closing & holding costs

Market Overview

• Wellesley is a town in Norfolk County, MA

    • 15.4 miles to Museum of Fine Arts
    • 16.9 miles to Downtown Boston
    • 19.2 miles to Boston Logan International Airport

• Retail Sales Sold: 99%
• Short Sales Sold: 1%
• REO Sold: 0%

  • data acquired from internal sources.

Project Strategy

The developer bought this property with financing from Fund That Flip on November 05, 2020. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Foundation
• Framing
• Doors and Windows
• Interior and Exterior Paint
• Driveway
• Fencing
• Insulation
• Rough and Finish Electrical
• Rough and Finish Plumbing
• Hardwood Flooring

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 67.0%.
• 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.