Status: Repaid

Annual Return Term Remaining
8.5% -
Loan to ARV
62.8%
Investment Offering
$1,005,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

This offering is fully funded

Mooresville, NC

REPEAT BORROWER

Updates

  • 02/23/22

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 02/14/2022.

    You will receive the following payments related to this payoff: February 2022 Partial Normal Interest, February 2022 Partial Penalty Intertest, 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.

  • 01/27/22

    Based on the inspection report, this project is at 90.5% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 01/27/22.

  • 01/27/22

    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.

  • 12/27/21

    Based on the inspection report, this project is at 85.07% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 12/22/21.

  • 12/22/21

    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.

  • 11/30/21

    Based on the inspection report, this project is at 78.16% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 11/29/21.

  • 11/29/21

    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.

  • 10/29/21

    Based on the inspection report, this project is at 68.83% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 10/28/21.

  • 10/28/21

    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.

  • 10/18/21

    The updated maturity date for this loan is 1/30/2021.

    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 3-5 business days.

  • 09/30/21

    Based on the inspection report, this project is at 64.04% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 09/29/21.

  • 09/29/21

    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.

  • 09/03/21

    Based on the inspection report, this project is at 56.51% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 09/02/21.

  • 09/02/21

    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.

  • 08/06/21

    Based on the inspection report, this project is at 51.95% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 08/05/21.

  • 08/05/21

    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.

  • 07/14/21

    The updated maturity date for this loan is 10/30/2021.

    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.

  • 07/09/21

    Based on the inspection report, this project is at 32.69% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 07/08/21.

  • 07/08/21

    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.

  • 06/11/21

    Based on the inspection report, this project is at 17.39% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 06/10/21.

  • 06/10/21

    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.

  • 05/14/21

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

    The developer has requested an extension to complete the construction of the property. Fund That Flip is currently reviewing the request.

    Investors will continue to be updated as further developments occur.

  • 04/01/21

    Earlier today, Fund That Flip spoke with the developer about the current status of the project.

    The developer has represented that the property has been presold. Fund That Flip has requested a copy of the executed purchase contract to verify the sale.

    Investors will continue to 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.

  • 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.

  • 02/17/21

    Earlier today, Fund That Flip spoke with the developer about the current status of the project.

    The developer has represented that they are about to begin the foundation. There was a delay due to the septic system having to be re-designed.

    Investors will continue to be updated as further developments occur.

  • 12/29/20

    Earlier today, Fund That Flip spoke with the developer about the current status of the project.

    The developer has represented that the structure that was on the lot has been removed and demo is complete. They are currently working through area cost figures and rough grade estimates. House plans are also in final draft.

    Investors will continue to be updated as further developments occur.

  • 11/05/20

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

    The developer has represented that this property is still in the pre-construction process. They expect to begin construction and request a construction draw in the coming weeks.

    Investors will continue to be updated as further developments occur.

  • 09/18/20

    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 going through the permitting process before beginning construction.

    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 July 30, 2020. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $306,814 to the developer at closing for a loan to purchase of 55.8%. Fund That Flip is holding back $18,174 for 2 months of pre-paid interest.

The construction budget is $727,219. Fund That Flip will finance $657,413 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 developer will contribute an estimated $353,767 in equity, including an estimated $243,186 at the time of closing. The total loan-to-ARV is 62.8%. There is a 3 month pre-payment penalty, meaning investors will earn interest through October 30, 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 $550,000 $306,814 30.5%
Purch. $550,000 $306,814 30.5%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $727,219 $657,413 65.4%
Prepaid Int $18,174 $18,174 1.8%
Closing $22,600 $22,600 2.2%
Total $1,317,993 $1,005,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $550,000 $306,814 $243,186 55.8%
Purch. $550,000 $306,814 $243,186 55.8%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $727,219 $657,413 $69,807 90.4%
Prepaid Int $18,174 $0 $18,174 0.0%
Closing $22,600 $22,600 $22,600 100.0%
Total $1,317,993 $986,826 $353,767 74.9%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $550,000 $306,814 55.8%
Appraised ARV: $1,600,000 $1,005,000 62.8%
FTF Valuation: $1,600,000 $1,005,000 62.8%

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

The internal valuation of $1,600,000 on the property is supported by the following data points:
• 6 comparable properties have recently sold between $1,175,000 and $1,875,000.
• Price per square foot of these comparable properties ranges from $198 to $386.
• Our internal valuation yielded a price per square foot of $324.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $1,600,000 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 5
Full Bathrooms 5
Year Built 2020
Square Footage 4930 SF
Garage Spaces 3
Purchase Price $550,000
Estimated Rehab Budget $727,219
ARV $1,600,000
Developer Equity $353,767 plus closing & holding costs

Market Overview


• Mooresville is a city in Iredell County, NC

Mooresville is located 25 miles north of Charlotte, NC. It is best known as the home of many NASCAR racing teams and drivers, along with an IndyCar team and its drivers, as well as racing technology suppliers, which has earned the city the nickname "Race City USA." Also located in Mooresville is the corporate headquarters of Lowe's Companies.

    • 9 miles from Lake Norman, North Carolina
    • 30 miles to (35 minute commute) to downtown Charlotte
    • 25 miles to the I-485 Loop

• Retail Sales Sold: 100%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on July 30, 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
• Siding
• WIndows
• Electric
• Plumbing
• HVAC
• Roofing
• Drywall
• Painting

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 62.8%.
• 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 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.