Status: Repaid

Annual Return Term Remaining
8.25% -
Loan to ARV
66.7%
Investment Offering
$50,000
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

  • 11/04/20

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 10/20/2020.

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

  • 10/16/20

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

    The developer has represented that they are closing on a sale of this property. The sale is expected to close within the next coming weeks.

    Fund That Flip has reached out to the developer for a copy of the purchase contract to verify the sale.

    Investors will be updated as further developments occur.

  • 08/27/20

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

    The developer has requested a loan extension to finalize a sale of the project.

    After communication with the developer about the revised timeline for the sale, Fund That Flip has approved the customer's request.

    The maturity date will be extended an additional three months. The updated maturity date for this loan is 11/13/2020.

    Investors will receive their share of collected extension fees within 5 business days.

  • 07/24/20

    This loan has a maturity date of 08/14/2020 and is paid current.

    The rehab budget has been drawn 72.73% with the last draw occurring on 05/21/2020.

    As this loan is approaching maturity and the rehab is not complete, the Fund That Flip team is working with the developer to understand timelines as well as an exit strategy. This loan may be eligible for an extension to complete the rehab.

    Fund That Flip will continue to provide updates as they are available.

  • 05/22/20

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

    Based on the Inspection Report the project is at 72% completion.

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

    Investors will be notified as further developments occur.

Investment Summary


Type Rehab
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee

Fund That Flip closed the loan on this property on February 14, 2020. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $40,517 to the developer at closing for a loan to purchase of 81.0%. Fund That Flip is holding back $1,546 for 3 months of pre-paid interest.

The construction budget is $6,000. Fund That Flip will finance $6,188 of the total construction 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 1 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 $12,592 in equity, including an estimated $9,483 at the time of closing. The total loan-to-ARV is 66.7%. There is a 3 month pre-payment penalty, meaning investors will earn interest through May 14, 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 $50,000 $40,517 81.0%
Purch. $50,000 $40,517 81.0%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $6,000 $6,188 12.4%
Prepaid Int $1,546 $1,546 3.1%
Closing $1,750 $1,750 3.5%
Total $59,296 $50,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $50,000 $40,517 $9,483 81.0%
Purch. $50,000 $40,517 $9,483 81.0%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $6,000 $6,188 -$188 103.1%
Prepaid Int $1,546 $0 $1,546 0.0%
Closing $1,750 $1,750 $1,750 100.0%
Total $59,296 $48,454 $12,592 81.7%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $50,000 $40,517 81.0%
FTF Valuation: $75,000 $50,000 66.7%

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

The internal valuation of $75,000 on the property is supported by the following data points:
• 6 comparable properties have recently sold between $60,000 and $80,000.
• Price per square foot of these comparable properties ranges from $73 to $100.
• Our internal valuation yielded a price per square foot of $92.

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

About the Property


Details

Bedrooms 2
Full Bathrooms 1
Year Built 1917
Square Footage 816 SF
Purchase Price $50,000
Estimated Rehab Budget $6,000
ARV $75,000
Developer Equity $12,592 plus closing & holding costs

Market Overview


• Independence is a city in Jackson County, MO

    • 8.5 miles to Ameristar Casino Hotel Kansas City
    • 8.7 miles to Downtown Kansas City
    • 9.7 miles to National WWI Museum and Memorial

• Retail Sales Sold: 66%
• Short Sales Sold: 0%
• REO Sold: 34%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on February 14, 2020. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Roofing
• Replace Outlets
• Cabinets Trim
• Strom Doors

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 66.7%.
• 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.