Status: Repaid

Annual Return Term Remaining
8.5% -
Loan to ARV
69.1%
Investment Offering
$1,417,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Portfolio
Guarantee
Personal Guarantee
Underlying Security
1st Position

This offering is fully funded

Boston, MA Condo Conversion

REPEAT BORROWER

Updates

  • 09/29/21

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 09/24/2021.

    You will receive the following payments related to this payoff: September 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.

  • 09/28/21

    Fund That Flip is pleased to inform you that the loan has been partially paid off. The partial payoff date is 09/23/2021.

    The developer has sold one of the properties in the portfolio and remitted $782,986.30 to Fund That Flip to complete a partial payoff.

    Investors will receive a return of principal equal to 55.81% of their original holding in this offering. Investor holdings have also been updated to reflect these partial repayments.

    You can expect to see these funds deposited in your bank account within 5-8 business days.

    In addition, Fund That Flip will remain in close contact with the developer until they make a full principal repayment.

  • 09/23/21

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

    The developer has represented that rehab and project is complete. They plan to exit the loan within the next few weeks via sale, and are currently working on finalizing those plans.

    Investors will continue to be updated as further developments occur.

  • 08/04/21

    Based on the inspection report, this project is at 97.42% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 08/03/21.

  • 08/04/21

    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.

  • 07/08/21

    Based on the inspection report, this project is at 81.71% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 07/07/21.

  • 07/07/21

    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.

  • 06/21/21

    Based on the inspection report, this project is at 66.47% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 06/18/21.

  • 06/18/21

    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.

  • 06/01/21

    Based on the inspection report, this project is at 51.19% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 05/28/21.

  • 05/28/21

    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.

  • 04/27/21

    Based on the inspection report, this project is at 26.96% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 04/26/21.

  • 04/23/21

    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.

  • 03/08/21

    Based on the inspection report, this project is at 15.21% complete.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 03/05/21.

  • 03/05/21

    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 Portfolio
Underlying Security 1st Position
Guarantee Personal Guarantee

Fund That Flip closed the loan on this property on February 08, 2021. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $791,653 to the developer at closing for a loan to purchase of 81.2%. Fund That Flip is holding back $49,152 for 3 months of pre-paid interest.

The construction budget is $600,000. Fund That Flip will finance $548,397 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 9 construction draws, but may schedule additional inspections as needed. The final draw will be released after all work is verified to be complete. Upon completion, the developer plans to list the units for sale.

Over the course of the project, the developer will contribute an estimated $311,899 in equity, including an estimated $183,347 at the time of closing. The total loan-to-ARV is 69.1%. There is a 3 month pre-payment penalty, meaning investors will earn interest through May 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. Additionally, Fund That Flip has established a paydown schedule so that as collateral is released, the principal balance of the loan will be paid down correspondingly.

Use of Proceeds


  Cost Use of Proceeds % of Loan
At close $975,000 $791,653 55.9%
Purch. $975,000 $791,653 55.9%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $600,000 $548,397 38.7%
Prepaid Int $49,152 $49,152 3.5%
Closing $27,798 $27,798 2.0%
Total $1,651,950 $1,417,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $975,000 $791,653 $183,347 81.2%
Purch. $975,000 $791,653 $183,347 81.2%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $600,000 $548,397 $51,603 91.4%
Prepaid Int $49,152 $0 $49,152 0.0%
Closing $27,798 $27,798 $27,798 100.0%
Total $1,651,950 $1,367,848 $311,899 82.8%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $975,000 $791,653 81.2%
FTF Valuation: $2,050,000 $1,417,000 69.1%

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

The internal valuation of $2,050,000 on the property is supported by the following data points:
Fund That Flip internal valuation per unit: $1,025,000.
• 5 comparable properties have recently sold between $930,000 and $1,175,000.
• Price per square foot of these comparable properties ranges from $421 to $539.
• Our internal valuation yielded a price per square foot of $510.

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 3
Year Built 1928
Square Footage 2010 SF
Purchase Price $975,000
Estimated Rehab Budget $600,000
ARV $2,050,000
Developer Equity $311,899 plus closing & holding costs

Market Overview


• Arlington is a city in Middlesex County, MA

The subject property is:
    • 2 miles to Tufts University
    • 3 miles to Harvard University
    • 6 miles to Massachussetts Institute of Technology

• Retail Sales Sold: 100%
• Short Sales Sold: 0%
• REO Sold: 0%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on February 08, 2021. Your investment will begin accruing interest the day it clears escrow.

The borrower will be reconfiguring the property's layout so that the units will be side by side as opposed to one on top of the other. Each unit will have 3 floors of finished space above grade and a finished basement. The units will have the following specs:
• 4 bedrooms
• 3 full bathrooms
• 1 half bathroom
• Approximately 2,010 square feet of finished space

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

The full statement of work is available below.

Upon completion, the developer will list the units for sale.

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 69.1%.
• 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.