Status: Repaid

Annual Return Term Remaining
10.75% -
Loan to ARV
45.9%
Investment Offering
$85,000
Min. Investment
$5,000
Term
6 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

This deal does not have an active offering

Richmond, VA Rehab

REPEAT BORROWER

Updates

  • 12/22/20

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 12/14/2020.

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

  • 11/23/20

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

    The developer and the refinance lender have represented that they are targeting to close by the end of the year.

    The developer is pushing to get this closed as soon as possible and we have asked for a copy of a term sheet and letter of intent from the lender.

    Investors will continue to be updated as further developments occur.

  • 10/26/20

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

    Based on the Inspection Report this project is at 91% completion.

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

    Investors will be notified as further developments occur.

  • 10/05/20

    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.

    Investors will be notified as further developments occur.

  • 09/23/20

    Earlier today, Fund That Flip spoke with the developer about the current status of the project. The developer represented that they will be requesting a construction draw next week. At that time, we will order an inspection of the property to monitor progress made and disburse a construction draw.

    Investors will continue to be updated as further developments occur.

  • 08/07/20

    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.

  • 06/17/20

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

    Based on the Inspection Report this project is at 25% completion.

    Investors will be notified as further developments occur.

Investment Summary


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

Fund That Flip closed the loan on this property on June 10, 2020. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $16,255 to the developers at closing for a loan to purchase of 21.9%. Fund That Flip is holding back $5,932 for 6 months of pre-paid interest.

The construction budget is $70,650. Fund That Flip will finance $59,688 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 3 construction draws, but may schedule additional inspections as needed. The final draw will be released after all work is verified to be complete. Once construction is complete, the developer plans to sell the property.

Over the course of the project, the developers will contribute an estimated $78,015 in equity, including an estimated $57,995 at the time of closing. The total loan-to-ARV is 45.9%. There is a 3 month pre-payment penalty, meaning investors will earn interest through September 10, 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 $74,250 $16,255 19.1%
Purch. $74,250 $16,255 19.1%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $70,650 $59,688 70.2%
Prepaid Int $5,932 $5,932 7.0%
Closing $3,125 $3,125 3.7%
Total $153,957 $85,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $74,250 $16,255 $57,995 21.9%
Purch. $74,250 $16,255 $57,995 21.9%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $70,650 $59,688 $10,963 84.5%
Prepaid Int $5,932 $0 $5,932 0.0%
Closing $3,125 $3,125 $3,125 100.0%
Total $153,957 $79,068 $78,015 51.4%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $74,250 $16,255 21.9%
Appraised ARV: $205,000 $85,000 41.5%
FTF Valuation: $185,000 $85,000 45.9%

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

The internal After Repair Valuation of $185,000 on the property is supported by the following data points:
• 6 comparable properties have recently sold between $162,000 and $255,000.
• Price per square foot of these comparable properties ranges from $92 to $148.
• Our internal valuation yielded a price per square foot of $127.

Fund That Flip supplemented our internal After Repair Valuation with an appraisal. The appraisal indicated an ARV of $205,000 for the property. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation.

The internal As-is valuation of $50,000 on the property is supported by the following data points:
• 4 comparable properties have recently sold between $43,000 and $88,000.
• Price per square foot of these comparable properties ranges from $25 to $39.
• Our internal valuation yielded a price per square foot of $34.

Fund That Flip supplemented our internal As-is valuation with an appraisal. The appraisal indicated an As-is value of $44,000 for the property. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation.
• The appraisal includes comps in different neighborhoods, not in close proximity to the subject property (outside of 0.87 miles). The comparable properties in the internal as-is analysis were within 0.4 miles of the subject property

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

About the Property


Details

Bedrooms 3
Full Bathrooms 2
Year Built 1925
Square Footage 1460 SF
Purchase Price $74,250
Estimated Rehab Budget $70,650
ARV $185,000
Current Appraised Value $44,000
Developer Equity $78,015 plus closing & holding costs

Market Overview


• Richmond is a city in Henrico County, VA

    • 2.3 miles to McGuire Veterans Hospital
    • 2.8 miles to Richmond, VA
    • 4.8 miles to Maymont

• Retail Sales Sold: 65%
• Short Sales Sold: 0%
• REO Sold: 35%

  • data acquired from internal sources.

Project Strategy


The developers previously bought this property. They will receive financing from Fund That Flip on June 10, 2020. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• New Siding
• Roof Repairs
• New Windows and Doors
• HVAC, Electrical, and Plumbing
• Interior and Exterior Paint
• Vinyl and Tile Flooring
• Kitchen and Bathroom Updates
• New Fixtures

The full statement of work is available below.

Once construction is complete, the developer plans to sell the property.

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 45.9%.
• 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.