Status: Repaid

Annual Return Term Remaining
9% -
Loan to ARV
69.7%
Investment Offering
$425,000
Min. Investment
$5,000
Term
9 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x3
Underlying Security
1st Position

This deal does not have an active offering

Columbus, OH Rehab

REPEAT BORROWER

Updates

  • 06/15/21

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 06/07/2021.

    You will receive the following payments related to this payoff: May 2021 Normal Interest, June 2021 Partial Normal 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.

  • 05/19/21

    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.

    The developer has also requested a loan extension to finalize a sale of the project. Fund That Flip has verified that the borrower has completed the rehab on this 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 an additional three months. The updated maturity date for this loan is 7/20/2021.

    Investors will receive their share of collected extension fees within 5-7 business days.

  • 05/17/21

    The monthly interest payment for April 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.

  • 04/20/21

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

    The project is 100% complete. Fund That Flip has processed the final construction draw to reimburse developer expenses.

    Investors will be notified as further developments occur.

  • 04/20/21

    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.

  • 04/20/21

    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.

  • 04/19/21

    The monthly interest payment for March 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.

  • 04/15/21

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

    The developer has represented they need an extension in order to complete the sale with the loan in good standing.

    Fund That Flip is working with the developer to extend the loan. it should be wrapped up within the next coming weeks.

    Investors will be updated as further developments occur.

  • 04/06/21

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

    The developer has represented that they are in negotiations with a potential buyer. They are not sure yet whether they will need additional time to sell the project or if they will be able to close on a sale around the time of maturity.

    Fund That Flip will remain in communication with the developer to understand how the negotiations are progressing and assist the developer with exiting the loan as needed (This may include extending the loan).

    Investors will be updated as further developments occur.

  • 02/22/21

    Based on the inspection report, this project is at 90.0% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 02/19/21.

  • 02/19/21

    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.

  • 12/21/20

    Based on the inspection report, this project is at 78.12% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 12/18/20.

  • 12/18/20

    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.

  • 11/09/20

    Based on the inspection report, this project is at 39.39% complete.
    Fund That Flip has processed a construction draw to reimburse developer expenses on 11/06/20

  • 11/06/20

    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.
    Investors will be updated after a construction draw has been disbursed.

  • 09/16/20

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

    Based on the Inspection Report this project is at 14% completion.

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

    Investors will be notified as further developments occur.

Investment Summary


Type Rehab
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee x3

Fund That Flip closed the loan on this property on July 20, 2020. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $243,729 to the developer at closing for a loan to purchase of 81.2%. Fund That Flip is holding back $15,052 for 3 months of pre-paid interest.

The construction budget is $200,000. Fund That Flip will finance $156,719 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. Once construction is complete, the developer plans to sell the property.

Over the course of the project, the developer will contribute an estimated $124,104 in equity, including an estimated $56,271 at the time of closing. The total loan-to-ARV is 69.7%. There is a 3 month pre-payment penalty, meaning investors will earn interest through October 20, 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 $300,000 $243,729 57.3%
Purch. $300,000 $243,729 57.3%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $200,000 $156,719 36.9%
Prepaid Int $15,052 $15,052 3.5%
Closing $9,500 $9,500 2.2%
Total $524,552 $425,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $300,000 $243,729 $56,271 81.2%
Purch. $300,000 $243,729 $56,271 81.2%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $200,000 $156,719 $43,281 78.4%
Prepaid Int $15,052 $0 $15,052 0.0%
Closing $9,500 $9,500 $9,500 100.0%
Total $524,552 $409,948 $124,104 78.2%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $300,000 $243,729 81.2%
FTF Valuation: $610,000 $425,000 69.7%

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

The internal valuation of $610,000 on the property is supported by the following data points:
• 6 comparable properties have recently sold between $430,000 and $660,000.
• Price per square foot of these comparable properties ranges from $148 to $230.
• Our internal valuation yielded a price per square foot of $206.

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 1898
Square Footage 2956 SF
Garage Spaces 1
Purchase Price $300,000
Estimated Rehab Budget $200,000
ARV $610,000
Developer Equity $124,104 plus closing & holding costs

Market Overview


• Columbus is a city in Franklin County, OH

    • 0.9 miles to Columbus Museum of Art
    • 1.6 miles to Nationwide Children's Hospital
    • 1.7 miles to Columbus, OH

• Retail Sales Sold: 96%
• Short Sales Sold: 1%
• REO Sold: 3%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on July 20, 2020. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Electrical, Plumbing, and HVAC
• Framing and Drywall
• Flooring
• Interior and Exterior Paint
• Windows and Doors
• Kitchen and Bathroom Updates

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 69.7%.
• 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.