Status: Repaid

Annual Return Term Remaining
8.25% -
Loan to ARV
70.0%
Investment Offering
$350,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

This deal does not have an active offering

Clover, SC New Construction

REPEAT BORROWER

Updates

  • 12/10/20

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 12/04/2020.

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

  • 10/30/20

    Based on the inspection report, this project is at 62.91% complete.
    Fund That Flip has processed a construction draw to reimburse developer expenses on 10/29/20

  • 10/28/20

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

    Based on the Inspection Report this project is at 59% completion.

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

    Investors will be notified as further developments occur.

  • 09/17/20

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

    Based on the Inspection Report this project is at 33% completion.

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

    Investors will be notified as further developments occur.

  • 09/10/20

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

    The developer has requested a construction draw to be reimbursed for construction expenses.

    Fund That Flip has ordered an inspection and will disburse funds based on rehab progression.

    Investors will continue to be updated as further developments occur.

  • 07/22/20

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

    Based on the Inspection Report this project is at 11% completion.

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

    Investors will be notified as further developments occur.

  • 07/21/20

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

    Based on the Inspection Report this project is at 10% completion.

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

    Investors will be notified as further developments occur.

  • 07/16/20

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

    The developer has requested a construction draw to be reimbursed for expenses. Fund That Flip has ordered an inspection and will disburse funds once we verify the progression of the construction.

    Investors will continue to be updated as further developments occur.

  • 06/10/20

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

    The developer has represented that the lot is fully cleared and surveyors will be coming out in the next few weeks. They are targeting foundation work to begin shortly after.

    The developer has also hired a field manager to ensure schedules are being met and high quality is maintained.

    Investors will continue to be updated as further developments occur.

  • 04/15/20

    Fund That Flip has been in contact with the borrower on the current status of the project. As of 4/15/2020, construction on the project continues to progress without interruption. The borrower confirmed adherence to local and state ordinance and remains committed to the safety of their team.

    The developer has represented that grading permits have been issued for the property.

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

Investment Summary


Type New Construction
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee x2

Fund That Flip closed the loan on this property on February 28, 2020. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $44,170 to the developer at closing for a loan to purchase of 50.8%. Fund That Flip is holding back $9,436 for 3 months of pre-paid interest.

The construction budget is $328,145. Fund That Flip will finance $288,569 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 4 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 $99,668 in equity, including an estimated $42,830 at the time of closing. The total loan-to-ARV is 70.0%. There is a 3 month pre-payment penalty, meaning investors will earn interest through May 28, 2020, 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 $87,000 $44,170 12.6%
Purch. $87,000 $44,170 12.6%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $328,145 $288,569 82.4%
Prepaid Int $9,436 $9,436 2.7%
Closing $7,825 $7,825 2.2%
Total $432,406 $350,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $87,000 $44,170 $42,830 50.8%
Purch. $87,000 $44,170 $42,830 50.8%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $328,145 $288,569 $39,576 87.9%
Prepaid Int $9,436 $0 $9,436 0.0%
Closing $7,825 $7,825 $7,825 100.0%
Total $432,406 $340,564 $99,668 78.8%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $87,000 $44,170 50.8%
Appraised ARV: $480,000 $350,000 72.9%
FTF Valuation: $500,000 $350,000 70.0%

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

The internal valuation of $500,000 on the property is supported by the following data points:
• 7 comparable properties have recently sold between $380,000 and $705,000.
• Price per square foot of these comparable properties ranges from $114 to $175.
• Our internal valuation yielded a price per square foot of $161.

Additionally, the property has been pre-sold.
• Contract Price: $594,650
• $42, 000 initial deposit from the buyer

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $480,000 for the property. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation.

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 3
Year Built 2020
Square Footage 3106 SF
Garage Spaces 3
Purchase Price $87,000
Estimated Rehab Budget $328,145
ARV $500,000
Developer Equity $99,668 plus closing & holding costs

Market Overview


• Clover is a town in York County, SC

    • 8.7 miles to Crowders Mountain State Park
    • 13.8 miles to Daniel Stowe Botanical Garden
    • 22.9 miles to Charlotte Douglas International Airport

• Retail Sales Sold: 95%
• Short Sales Sold: 0%
• REO Sold: 5%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on February 28, 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
• Drywall
• Windows
• Interior and Exterior Paint
• Electrical Work
• Plumbing
• Kitchen Appliances
• Kitchen Countertops
• 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 70.0%.
• 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.