Status: Repaid

Annual Return Term Remaining
8% -
Loan to ARV
61.5%
Investment Offering
$815,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

This offering is fully funded

Boston, MA

REPEAT BORROWER

Updates

  • 09/14/21

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 09/01/2021.

    You will receive the following payments related to this payoff: August 2021 Normal Interest, September 2021 Partial Normal Interest, September 2021 Partial Penalty Interest, 1 Extension Fee, and Principal.

    You can expect to see these funds deposited in your bank account within 3-5 business days. In addition, these payments will be view-able from your investor dashboard.

  • 08/26/21

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

    The developer has represented that the property is under contract to sell and they are targeting to close by mid-September. They have since requested a payoff statement.

    Investors will continue to be updated as further developments occur.

  • 08/26/21

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

    The developer has represented that the property is under contract to sell and they are targeting to close by mid-September. They have since requested a payoff statement.

    Investors will continue to be updated as further developments occur.

  • 08/09/21

    Based on the inspection report, this project is at 96.18% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 08/06/21.

  • 08/06/21

    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.

  • 07/26/21

    The updated maturity date for this loan is 8/30/2021.

    The developer has requested a loan extension to finalize a sale of the project.

    After communication with the developer about the revised timeline for the sale, Fund That Flip has approved the customer's request.

    The maturity date will be extended one additional month.

    Investors will receive their share of collected extension fees at time of payoff.

  • 07/26/21

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

    The developer has represented that they are targeting to close on the sale by the end of August. Fund That Flip is currently working to verify that the property is under contract and looking into a potential extension.

    Investors will continue to be updated as further developments occur.

  • 06/25/21

    Based on the inspection report, this project is at 71.69% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 06/24/21.

  • 06/24/21

    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.

  • 05/24/21

    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.

    Investors will continue to be updated as further developments occur.

  • 04/12/21

    Based on the inspection report, this project is at 53.4% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 04/09/21.

  • 04/09/21

    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.

  • 03/01/21

    Based on the inspection report, this project is at 37.02% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 02/26/21.

  • 02/26/21

    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.

  • 02/23/21

    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.

  • 12/07/20

    Based on the inspection report, this project is at 18.97% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 12/04/20.

  • 12/03/20

    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.

  • 11/10/20

    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.

  • 09/24/20

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

    The developer has represented that the property is currently about 75% through demolition. We expect a construction draw to be requested in mid-October.

    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

Fund That Flip closed the loan on this property on July 31, 2020. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $518,891 to the developer at closing for a loan to purchase of 76.9%. Fund That Flip is holding back $24,701 for 3 months of pre-paid interest.

The construction budget is $287,000. Fund That Flip will finance $250,570 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 $238,077 in equity, including an estimated $156,109 at the time of closing. The total loan-to-ARV is 61.5%. There is a 3 month pre-payment penalty, meaning investors will earn interest through October 31, 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 $675,000 $518,891 63.7%
Purch. $675,000 $518,891 63.7%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $287,000 $250,570 30.7%
Prepaid Int $24,701 $24,701 3.0%
Closing $20,838 $20,838 2.6%
Total $1,007,539 $815,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $675,000 $518,891 $156,109 76.9%
Purch. $675,000 $518,891 $156,109 76.9%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $287,000 $250,570 $36,430 87.3%
Prepaid Int $24,701 $0 $24,701 0.0%
Closing $20,838 $20,838 $20,838 100.0%
Total $1,007,539 $790,299 $238,077 78.4%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $675,000 $518,891 76.9%
Appraised ARV: $1,300,000 $815,000 62.7%
FTF Valuation: $1,325,000 $815,000 61.5%

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

The internal valuation of $1,325,000 on the property is supported by the following data points:
• 5 comparable properties have recently sold between $1,075,000 and $1,699,000.
• Price per square foot of these comparable properties ranges from $560 to $717.
• Our internal valuation yielded a price per square foot of $602.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $1,300,000 for the property. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation.

In review of the appraisal, Fund That Flip noted the following items:
• The appraisal accounted for an additional bedroom on the subject-to appraisal. The borrower will be combining two bedrooms to make one larger bedroom, thus leaving the property with 4 total bedrooms instead of 5.

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 2
Year Built 1890
Square Footage 2200 SF
Purchase Price $675,000
Estimated Rehab Budget $287,000
ARV $1,325,000
Current Appraised Value $690,000
Developer Equity $238,077 plus closing & holding costs

Market Overview


• Boston is a city in Suffolk County, MA

The subject property is:
    • 3 miles to Downtown Boston
    • Less than 0.5 miles to L Street Beach
    • 4 miles to Boston Logan International Airport

• Retail Sales Sold: 93%
• Short Sales Sold: 2%
• REO Sold: 5%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on July 31, 2020. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Demolition
• Framing
• Roofing
• HVAC
• Plumbing
• Electrical
• Windows
• Insulation
• Appliances
• Cabinets & Countertops

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 61.5%.
• 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.