Status: Repaid

Annual Return Term Remaining
8% -
Loan to ARV
61.7%
Investment Offering
$370,000
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

Scottsdale, AZ

Updates

  • 03/09/21

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 03/02/2021.

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

  • 01/28/21

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

    The developer has represented that the property is under contract. We have requested a copy of the executed purchase contract to verify the sale.

    Listing: https://www.zillow.com/homedetails/6625-E-Cypress-St-Scottsdale-AZ-85257/7571451_zpid/

    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 October 09, 2020. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $367,400 to the developer at closing for a loan to purchase of 79.0%. Fund That Flip is holding back $2,600 for pre-paid interest. This is the partial month of interest for the month of October.

The construction budget is $95,000. Fund That Flip will not be financing the construction rehab for this loan but we have verified the borrower’s reserves to be sufficient to complete the project. Once construction is complete, the borrower plans to sell the property.

Over the course of the project, the developer will contribute an estimated $195,201 in equity, including an estimated $97,600 at the time of closing. The total loan-to-ARV is 61.7%. There is a 3 month pre-payment penalty, meaning investors will earn interest through January 09, 2021, 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 $465,000 $367,400 99.3%
Purch. $465,000 $367,400 99.3%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $95,000 $0 0.0%
Prepaid Int $2,600 $2,600 0.7%
Closing $0 $0 0.0%
Total $562,600 $370,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $465,000 $367,400 $97,600 79.0%
Purch. $465,000 $367,400 $97,600 79.0%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $95,000 $0 $95,000 0.0%
Prepaid Int $2,600 $0 $2,600 0.0%
Closing $0 $0 $0
Total $562,600 $367,400 $195,201 65.3%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $465,000 $367,400 79.0%
FTF Valuation: $600,000 $370,000 61.7%

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

The internal valuation of $600,000 on the property is supported by the following data points:
• 4 comparable properties have recently sold between $578,000 and $602,500.
• Price per square foot of these comparable properties ranges from $257 to $323.
• Our internal valuation yielded a price per square foot of $252.

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 1958
Square Footage 2383 SF
Purchase Price $465,000
Estimated Rehab Budget $95,000
ARV $600,000
Developer Equity $195,201 plus closing & holding costs

Market Overview


• Scottsdale is a city in Maricopa County, AZ

    • 5.8 miles to Phoenix Sky Harbor International Airport
    • 11 miles to Phoenix, Arizona
    • 2.5 miles to Scottsdale, Arizona

• Retail Sales Sold: 98%
• Short Sales Sold: 0%
• REO Sold: 2%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on October 09, 2020. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Demolition
• Plumbing
• Framing
• Drywall

Once construction is complete, the borrower 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 61.7%.
• 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 6 month period.

Mitigating Factor:
Fund That Flip has built in a 6 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.