Status: Repaid

Annual Return Term Remaining
9% -
Loan to ARV
71.1%
Investment Offering
$345,000
Min. Investment
$5,000
Term
9 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

This deal does not have an active offering

Columbus, OH New Construction

REPEAT BORROWER

Updates

  • 05/21/21

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 05/13/2021.

    You will receive the following payments related to this payoff: April 2021 Normal Interest, May 2021 Partial Normal Interest, 6 late fees (may vary depending on accrual date), 1 Extension Fee, 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.

  • 04/20/21

    Based on the inspection report, this project is at 100.0% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 04/19/21.

  • 04/14/21

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

    The developer has requested a draw inspection for reimbursement of work completed. Fund That Flip is coordinating the inspection to verify the amount of work done.

    Investors will be updated as further developments occur.

  • 04/05/21

    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. A late fee has also been assessed and will be distributed to investors upon collection at payoff.

    You can expect to see the funds deposited in your account within 3-5 business days.

    Investors will be updated as further developments occur.

  • 03/05/21

    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.

  • 03/02/21

    Based on the inspection report, this project is at 83.3% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 03/01/21.

  • 03/01/21

    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.

  • 02/18/21

    The monthly interest payment for January 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.

  • 12/28/20

    Based on the inspection report, this project is at 60.77% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 12/23/20.

  • 12/23/20

    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 the completion of the rehab 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. The updated maturity date for this loan is 6/13/2021.

    Investors will receive part of their share of collected extension fees within 5 business days and the other part at the time of payoff.

  • 12/23/20

    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.

  • 12/11/20

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

    The developer has represented that they are continuing to progress work and plan to take a draw in the next coming weeks. They estimate the project will be completed within 120 days.

    Thus they will need additional time in order to complete the project with the loan in good standing. Fund That Flip is currently working with the developer to extend the loan so they can successfully complete the project and exit the loan.

    Investors will be updated as further developments occur.

  • 12/01/20

    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.

  • 11/17/20

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

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

  • 11/04/20

    Based on the inspection report, this project is at 38.77% complete.
    Fund That Flip has processed a construction draw to reimburse developer expenses on 11/02/20

  • 10/15/20

    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.

  • 10/15/20

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

    Based on the Inspection Report this project is at 30% completion.

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

    Investors will be notified as further developments occur.

  • 09/16/20

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

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

  • 08/20/20

    This loan has a maturity date of 12/13/2020.

    The developer is paid current but has not requested a construction draw yet.

    The Fund That Flip team is in communication with the developer to understand the construction progress and to coordinate an inspection of the property.

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

  • 05/13/20

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

    The developer has represented that the construction on the property is underway and is progressing as planned. A construction draw request is anticipated 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 x2

Fund That Flip closed the loan on this property on March 13, 2020. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $44,324 to the developer at closing for a loan to purchase of 59.1%. Fund That Flip is holding back $2,276 for 0 months of pre-paid interest.

The construction budget is $369,075. Fund That Flip will finance $289,000 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 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 $122,427 in equity, including an estimated $30,676 at the time of closing. The total loan-to-ARV is 71.1%. There is a 3 month pre-payment penalty, meaning investors will earn interest through June 13, 2020, even if paid back earlier. The term of the underlying loan is 9 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 $75,000 $44,324 12.8%
Purch. $75,000 $44,324 12.8%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $369,075 $289,000 83.8%
Prepaid Int $2,276 $2,276 0.7%
Closing $9,400 $9,400 2.7%
Total $455,751 $345,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $75,000 $44,324 $30,676 59.1%
Purch. $75,000 $44,324 $30,676 59.1%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $369,075 $289,000 $80,075 78.3%
Prepaid Int $2,276 $0 $2,276 0.0%
Closing $9,400 $9,400 $9,400 100.0%
Total $455,751 $342,724 $122,427 75.2%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $75,000 $44,324 59.1%
FTF Valuation: $485,000 $345,000 71.1%

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

The internal valuation of $485,000 on the property is supported by the following data points:
• 6 comparable properties have recently sold between $430,000 and $489,900.
• Price per square foot of these comparable properties ranges from $251 to $287.
• Our internal valuation yielded a price per square foot of $291.

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

About the Property


Details

Bedrooms 3
Full Bathrooms 3
Year Built 2020
Square Footage 1664 SF
Garage Spaces 2
Purchase Price $75,000
Estimated Rehab Budget $369,075
ARV $485,000
Developer Equity $122,427 plus closing & holding costs

Market Overview


• Columbus is a city in Franklin County, OH

The subject proeprty is:
    • 2 miles to Downtown Columbus
    • 1 mile to Nationwide Children's Hospital
    • 2 mile to Columbus' historic German Village neighborhood

• Retail Sales Sold: 91%
• Short Sales Sold: 0%
• REO Sold: 9%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on March 13, 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
• Plumbing
• Electrical
• HVAC
• Insulation
• Drywall
• Appliances
• Cabinets & Counterops
• Siding

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 71.1%.
• 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 9 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.