Status: Repaid

Annual Return Term Remaining
8.25% -
Loan to ARV
69.9%
Investment Offering
$325,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

This deal does not have an active offering

Charleston, SC

REPEAT BORROWER

Updates

  • 06/17/21

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 06/10/2021.

    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.

  • 06/02/21

    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.

  • 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.

  • 05/13/21

    Fund That Flip has been in communication with the developer about their exit of this loan.

    The developer has represented that they have secured a buyer and the property is under contract.

    The sale is expected to take place in May.

    Listing: https://www.zillow.com/homedetails/6-Lochmore-Ter-Charleston-SC-29414/10879142_zpid/

    FTF has requested a copy and verified the purchase contract.

    Investors will continue to be updated as further developments occur.

  • 03/25/21

    Based on the inspection report, this project is at 100.0% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 03/24/21.

  • 03/24/21

    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.

  • 02/17/21

    Based on the inspection report, this project is at 85.58% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 02/16/21.

  • 02/16/21

    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.

  • 01/29/21

    Based on the inspection report, this project is at 67.61% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 01/28/21.

  • 01/28/21

    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.

  • 01/11/21

    Based on the inspection report, this project is at 50.76% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 01/08/21.

  • 01/08/21

    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.

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 December 08, 2020. Your investment will begin accruing interest on the day it clears escrow.

The contracted purchase price of the property was $202,000. The borrower paid an assignment fee of $18,000 in addition to the contracted purchase price, therefore, the total acquisition cost was $220,000.

Fund That Flip has provided a first distribution of $177,225 to the developer at closing for a loan to purchase of 80.6%. Fund That Flip is holding back $10,806 for 3 months of pre-paid interest.

The construction budget is $165,000. Fund That Flip will finance $129,469 of the total construction budget, [which includes a small contingency amount above the estimated rehab 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 borrower plans to sell the property.

Over the course of the project, the developer will contribute an estimated $96,613 in equity, including an estimated $42,775 at the time of closing. The total loan-to-ARV is 69.9%. There is a 3 month pre-payment penalty, meaning investors will earn interest through March 08, 2021, 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 $220,000 $177,225 54.5%
Purch. $220,000 $177,225 54.5%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $165,000 $129,469 39.8%
Prepaid Int $10,806 $10,806 3.3%
Closing $7,500 $7,500 2.3%
Total $403,306 $325,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $220,000 $177,225 $42,775 80.6%
Purch. $220,000 $177,225 $42,775 80.6%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $165,000 $129,469 $35,531 78.5%
Prepaid Int $10,806 $0 $10,806 0.0%
Closing $7,500 $7,500 $7,500 100.0%
Total $403,306 $314,194 $96,613 77.9%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $220,000 $177,225 80.6%
FTF Valuation: $465,000 $325,000 69.9%

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

The internal valuation of $465,000 on the property is supported by the following data points:
• 3 comparable properties have recently sold between $451,250 and $475,000.
• Price per square foot of these comparable properties ranges from $144 to $178.
• Our internal valuation yielded a price per square foot of $166.

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 1987
Square Footage 2128 SF
Garage Spaces 2
Purchase Price $220,000
Estimated Rehab Budget $165,000
ARV $465,000
Developer Equity $96,613 plus closing & holding costs

Market Overview


• Charleston is a city in Charleston County, SC

    • 11 miles to Charleston International Airport
    • 12 miles to Charleston, South Carolina
    • 3 miles to Magnolia Plantation and Gardens

• Retail Sales Sold: 97%
• Short Sales Sold: 1.5%
• REO Sold: 1.5%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on December 08, 2020. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Foundation
• Plumbing
• HVAC
• Electric
• Framing
• Roof
• Drywall
• Interior and exterior paint
• Kitchen updates
• Bathroom updates

The full statement of work is available below.

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 69.9%.
• 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.