Status: Repaid

Annual Return Term Remaining
8.25% -
Loan to ARV
58.6%
Investment Offering
$82,000
Min. Investment
$5,000
Term
6 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

This deal does not have an active offering

Columbus, OH

REPEAT BORROWER

Updates

  • 03/01/21

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 02/23/2021.

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

  • 02/12/21

    Earlier today, Fund That Flip spoke with the developer's team and the refinance lender about the current status of the project.

    They have represented that they are targeting to close on the refinance by the end of the month and have since requested updated payoff forms.

    Timely interest payments continue to be made on a monthly basis.

    Fund That Flip will continue to monitor the status of the refinance closely and will keep investors updated as further developments occur.

  • 12/21/20

    Based on the inspection report, this project is at 90.71% 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.

  • 12/15/20

    Based on the inspection report, this project is at 72.86% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 12/14/20.

  • 12/14/20

    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.

  • 12/07/20

    Based on the inspection report, this project is at 30.0% complete.

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

  • 12/04/20

    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.

  • 11/23/20

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

    The developer has represented that they are still making 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.

  • 10/07/20

    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.

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 August 21, 2020. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $64,609 to the developer at closing for a loan to purchase of 80.8%. Fund That Flip is holding back $2,301 for 3 months of pre-paid interest.

The construction budget is $17,500. Fund That Flip will finance $11,950 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 2 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 rent and refinance the property.

Over the course of the project, the developer will contribute an estimated $26,381 in equity, including an estimated $15,391 at the time of closing. The total loan-to-ARV is 58.6%. There is a 3 month pre-payment penalty, meaning investors will earn interest through November 21, 2020, even if paid back earlier. The term of the underlying loan is 6 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 $80,000 $64,609 78.8%
Purch. $80,000 $64,609 78.8%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $17,500 $11,950 14.6%
Prepaid Int $2,301 $2,301 2.8%
Closing $3,140 $3,140 3.8%
Total $102,941 $82,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $80,000 $64,609 $15,391 80.8%
Purch. $80,000 $64,609 $15,391 80.8%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $17,500 $11,950 $5,550 68.3%
Prepaid Int $2,301 $0 $2,301 0.0%
Closing $3,140 $3,140 $3,140 100.0%
Total $102,941 $79,699 $26,381 77.4%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $80,000 $64,609 80.8%
FTF Valuation: $140,000 $82,000 58.6%

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

The internal valuation of $140,000 on the property is supported by the following data points:
• 6 comparable properties have recently sold between $133,000 and $146,000.
• Price per square foot of these comparable properties ranges from $102 to $133.
• Our internal valuation yielded a price per square foot of $111.
• Gross monthly rents are estimated at $780 for similar properties in the area.

Fund That Flip used the FTF internal valuation when making the final decision to fund this project.

About the Property


Details

Bedrooms 2
Full Bathrooms 1
Year Built 1950
Square Footage 1258 SF
Purchase Price $80,000
Estimated Rehab Budget $17,500
ARV $140,000
Developer Equity $26,381 plus closing & holding costs

Market Overview


• Columbus is a city in Franklin County, OH

    • 2.4 miles to Blacklick Woods Golf Course
    • 9.3 miles to John Glenn Columbus International Airport
    • 11.5 miles to Columbus, OH

• Retail Sales Sold:94%
• Short Sales Sold: 0%
• REO Sold: 6%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on August 21, 2020. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Interior Paint
• Doors and Trim
• Flooring
• Cabinets
• Bathroom Updates
• Landscaping

The full statement of work is available below.

Once construction is complete, the developer plans to rent and refinance 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 58.6%.
• 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 6 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.