Status: Repaid

Annual Return Term Remaining
8.5% -
Loan to ARV
67.0%
Investment Offering
$1,200,000
Min. Investment
$5,000
Term
12 mo.
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

This offering is fully funded

Arlington, MA Condominium Conversion

REPEAT BORROWER

Updates

  • 10/12/21

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 10/01/2021.

    You will receive the following payments related to this payoff: August 2021 Partial Penalty Interest, September 2021 Normal Interest, September 2021 Penalty Interest, October 2021 Partial Normal Interest, October 2021 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.

  • 09/15/21

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

    The developer has provided us with a commitment letter from the refinance lender, and they are targeting to close before the end of September.

    Investors will continue to be updated as further developments occur.

  • 08/17/21

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

    The developer has represented that they are working on a refinance. The appraisal is scheduled for tomorrow, and they are targeting to close by the end of August.

    Investors will continue to be updated as further developments occur.

  • 08/06/21

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

    The developer understands the timeline to maturity and has requested a payoff form, as they have begun exploring a few different exit strategies. An extension may be requested within the coming weeks.

    Investors will continue to be updated as further developments occur.

  • 07/07/21

    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.

  • 05/17/21

    Based on the inspection report, this project is at 28.29% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 05/14/21.

  • 05/12/21

    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.

  • 04/15/21

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

    The developer has represented that the roof is framed and nearly complete and they will begin basement work by the end of next week. They are targeting to request a construction draw by the end of the month to be reimbursed for construction expenses.

    Investors will continue to be updated as further developments occur.

  • 03/23/21

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

    The developer has represented interior demolition is complete and they are currently working on roofing.

    Investors will continue to be updated as further developments occur.

  • 01/26/21

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

    The developer has represented that they have experienced many delays with the municipality due to COVID-19, but have finally begun demolition.

    Investors will continue to be updated as further developments occur.

  • 11/18/20

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

    The developer has represented that they have gotten approval from the conservation commission. They are still waiting to hear back from the building department in their municipality to obtain the necessary permits..

    They are targeting to begin the rehab by mid-December.

    Investors will continue to be updated as further developments occur.

  • 09/29/20

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

    The developer has represented that they are still working with the municipality on obtaining the necessary permits.

    They are targeting to start construction in the next 30 days and are planning to request a construction draw a few weeks after construction has begun.

    Investors will continue to be updated as further developments occur.

Use of Proceeds


  Cost Use of Proceeds % of Loan
At close $960,000 $767,147 63.9%
Purch. $960,000 $767,147 63.9%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $450,000 $387,436 32.3%
Prepaid Int $20,417 $20,417 1.7%
Closing $25,000 $25,000 2.1%
Total $1,455,417 $1,200,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $960,000 $767,147 $192,853 79.9%
Purch. $960,000 $767,147 $192,853 79.9%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $450,000 $387,436 $62,564 86.1%
Prepaid Int $20,417 $0 $20,417 0.0%
Closing $25,000 $25,000 $25,000 100.0%
Total $1,455,417 $1,179,583 $300,833 81.0%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $960,000 $767,147 79.9%
Appraised ARV: $1,905,000 $1,200,000 63.0%
FTF Valuation: $1,790,000 $1,200,000 67.0%

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 have a similar number of bedrooms, bathrooms, and square footage, and are of similar home style. The borrower will be subdividing the building into 2 condominiums and will sell each unit individually.

The aggregate internal valuation of $1,790,000 on the properties is supported by the following data points for both homes:
Unit #1 :
FTF ARV: $890,000
• 6 comparable properties have recently sold between $820,000 and $1,084,000.
    • The comparable properties used in the analysis are within 0.44 miles of the subject property.
• Price per square foot of these comparable properties ranges from $432 to $489.
• Our internal valuation yielded a price per square foot of $455.

Unit #2 :
FTF ARV: $900,000
• 6 comparable properties have recently sold between $820,000 and $1,084,000.
    • The comparable properties used in the analysis are within 0.44 miles of the subject property.
• Price per square foot of these comparable properties ranges from $432 to $489.
• Our internal valuation yielded a price per square foot of $434.

Fund That Flip supplemented our internal valuations with an appraisal on all condominiums. The appraisal indicated an aggregate ARV of $1,905,000 for the properties upon completion. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation. The appraisals indicated the following ARV's on the respective properties:
• Unit #1: $920,000
• Unit #2: $985,000

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 4
Purchase Price $960,000
Estimated Rehab Budget $450,000
ARV $1,790,000
Developer Equity $300,833 plus closing & holding costs

Market Overview


• Arlington is a city in Middlesex County, MA

    • 2 miles to Tufts University
    • 2.8 miles to Harvard University
    • 8 miles to Downtown Boston, Massachusetts

• Retail Sales Sold: 99%
• Short Sales Sold: 0%
• REO Sold: 1%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on August 13, 2020. Your investment will begin accruing interest the day it clears escrow.

The property will be divided in 2 separate units which will be sold individually as condominiums.

• Units #1 specs are as follows:
    • Bedrooms: 4
    • Full Bathrooms: 2
    • Square Footage: 1,955

• Units #3 specs are as follows:
    • Bedrooms: 4
    • Full Bathrooms: 2
    • Half Bathrooms: 2
    • Square Footage: 2,072

Construction will begin shortly after loan closing and includes the following:
• Foundation
• Structural
• Roofing
• HVAC
• Plumbing
• Electrical
• Drywall
• Framing

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 67.0%.
• 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.