Status: Repaid

Annual Return Term Remaining
10% -
Loan to ARV
53.8%
Investment Offering
$175,000
Min. Investment
$5,000
Term
9 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

This offering is fully funded

Decatur, GA Rehab

REPEAT BORROWER

Updates

  • 03/24/22

    Fund that Flip is pleased to inform you that the loan has been paid off.

    You will receive the following payments related to this payoff: October 2021 - February 2022 Normal Interest, March 2022 Partial Normal Interest, January 2022 Partial Penalty Interest, February 2022 Penalty Interest, March 2022 Partial Penalty Interest, 2 Late Fees, 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.

  • 12/20/21

    Fund that Flip has been in touch with the borrower, and the Project is progressing on schedule.

    Borrower has stated that the project will be done by end of extension time period.

    FundThatFlip will continue to monitor progress on this property, stay in contact with the borrower and update investors on progress.

  • 11/10/21

    The updated maturity date for this loan is 01/09/2022

    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 three months.

    Investors will receive their share of collected extension fees in the next 5-8 business days.

  • 11/04/21

    Fund That Flip is pleased to inform you that the loan has been partially paid off. The partial payoff date is 10/26/2021.

    The developer remitted $117,741.73 to Fund That Flip to complete a partial payoff.
    Investors will receive a return of principal equal to 67% of their original holding in this offering. Investor holdings have also been updated to reflect these partial repayments.

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

    In addition, Fund That Flip will remain in close contact with the developer while they continue to progress on the rehab of the remaining properties and make a full principal repayment.

  • 09/10/21

    Based on the inspection report, this project is at 72.68% complete per the scope of work.

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

  • 09/09/21

    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.

  • 08/20/21

    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.

  • 07/08/21

    The updated maturity date for this loan is 10/09/2021.

    The developer has requested a loan extension to finalize the completion of the rehab on the project.  The developer has added additional contractors to ensure this project will be finished and sold by new maturity date.

    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 three months. Investors will receive their share of collected extension fees in the next 5-8 business days.

  • 05/25/21

    FundThatFlip has been in contact with the borrower regarding project updates/progression timeline.

    Project is progressing on schedule with loan extension.

    FundThatFlip will continue to monitor progress on this property and stay in contact with the borrower.

  • 04/06/21

    The updated maturity date for this loan is now 07/09/2021.

    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 three months. Investors will receive their share of collected extension fees in the next 5-8 business days.

  • 03/25/21

    Based on the inspection report, this project is at 63.89% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 03/24/21.

  • 03/24/21

    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.

  • 03/18/21

    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 but will be requesting a loan extension in order to complete rehab work on this property.

    Once finished, the borrower plans on listing the property on the MLS.

    Investors will continue to be updated as further developments occur.

  • 01/05/21

    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.

    Once finished, the borrower plans on listing the property on the MLS.

    Investors will continue to be updated as further developments occur.

  • 11/17/20

    Based on the inspection report, this project is at 63.57% complete.
    Fund That Flip has processed a construction draw to reimburse developer expenses on 11/16/20

  • 11/16/20

    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.

  • 10/20/20

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

    Based on the Inspection Report this project is at 54% completion.

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

    Investors will be notified as further developments occur.

  • 10/13/20

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

    Based on the Inspection Report this project is at 37% completion.

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

    Investors will be notified as further developments occur.

  • 10/01/20

    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.

  • 09/02/20

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

    The developer has represented that they are still working on obtaining permits through their municipality.

    Investors will continue to be updated 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 July 09, 2020. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $69,999 to the developer at closing for a loan to purchase of 54.7%. Fund That Flip is holding back $18,160 for 9 months of pre-paid interest.

The construction budget is $110,075. Fund That Flip will finance $81,466 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 $110,145 in equity, including an estimated $58,001 at the time of closing. The total loan-to-ARV is 53.8%. There is a 3 month pre-payment penalty, meaning investors will earn interest through October 09, 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 $128,000 $69,999 40.0%
Purch. $128,000 $69,999 40.0%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $110,075 $81,466 46.6%
Prepaid Int $18,160 $18,160 10.4%
Closing $5,375 $5,375 3.1%
Total $261,610 $175,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $128,000 $69,999 $58,001 54.7%
Purch. $128,000 $69,999 $58,001 54.7%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $110,075 $81,466 $28,609 74.0%
Prepaid Int $18,160 $0 $18,160 0.0%
Closing $5,375 $5,375 $5,375 100.0%
Total $261,610 $156,840 $110,145 60.0%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $128,000 $69,999 54.7%
Appraised ARV: $260,000 $175,000 67.3%
FTF Valuation: $270,000 $175,000 64.8%

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

The internal valuation of $270,000 on the property is supported by the following data points:
• 4 comparable properties have recently sold between $235,000 and $357,000.
• Price per square foot of these comparable properties ranges from $148 to $210.
• Our internal valuation yielded a price per square foot of $189.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $260,000 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 3
Full Bathrooms 2
Year Built 1955
Square Footage 1431 SF
Purchase Price $128,000
Estimated Rehab Budget $110,075
ARV $325,000
Current Appraised Value $137,000
Developer Equity $110,145 plus closing & holding costs

Market Overview


• Decatur is a city in DeKalb County, GA

    • 9.5 miles to Zoo Atlanta
    • 10.4 miles to Downtown Atlanta
    • 13.2 miles to Hartsfield-Jackson Atlanta International Airport

• Retail Sales Sold: 91%
• Short Sales Sold: 1%
• REO Sold: 8%

  • data acquired from internal sources.

Project Strategy


“The developer previously bought this property. They will receive financing from Fund That Flip on July 09, 2020.” Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Roofing
• Driveway
• Deck and Fencing
• Exterior and Interior Paint
• Landscaping
• HVAC
• Rough and Finish Electrical
• Rough and Finish Plumbing
• Framing
• Drywall

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 53.8%.
• 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.