Investment rehab in Mooresville, NC - Deal 40638

Annual Return	Term Remaining
8.25%	-

Mooresville, NC

This fix and flip project with 5 bedrooms in Mooresville, NC, was funded with a short-term residential rehab loan by private money lender Fund That Flip.

Updates

03/03/22

Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 02/16/2022.

To secure and return full principal, Fund That Flip made the decision to waive 14 days of February accrued interest.

You will receive the following payments related to this payoff: February 2022 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.
02/24/22

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

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

The project is complete and FTF is processing the repayment.

Investors will continue to be updated as further developments occur.
02/10/22

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.
01/05/22

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

Investors will continue to be updated as further developments occur.

The project is complete and FTF expects the borrower to request a payoff statement in the coming weeks.

Timely interest payments continue to be made on a monthly basis.
12/17/21

The monthly interest payment for November 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.
11/19/21

Based on the inspection report, this project is at 99.81% complete per the scope of work.

Fund That Flip has processed a construction draw to reimburse developer expenses on 11/18/21.
11/18/21
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.
10/21/21

Based on the inspection report, this project is at 86.76% complete per the scope of work.

Fund That Flip has processed a construction draw to reimburse developer expenses on 10/20/21.
10/20/21
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.
09/24/21

Based on the inspection report, this project is at 72.23% complete per the scope of work.

Fund That Flip has processed a construction draw to reimburse developer expenses on 09/23/21.
09/22/21
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.
08/27/21

Based on the inspection report, this project is at 56.51% complete per the scope of work.

Fund That Flip has processed a construction draw to reimburse developer expenses on 08/26/21.
08/26/21
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.
08/02/21

Based on the inspection report, this project is at 54.44% complete per the scope of work.

Fund That Flip has processed a construction draw to reimburse developer expenses on 07/30/21.
07/30/21
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.
06/28/21

Based on the inspection report, this project is at 21.37% complete per the scope of work.

Fund That Flip has processed a construction draw to reimburse developer expenses on 06/25/21.
06/25/21
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	Underlying Asset	Underlying Security	Guarantee
New Construction	Single Family	1st Position	Personal Guarantee

Type	New Construction
Underlying Asset	Single Family
Underlying Security	1st Position
Guarantee	Personal Guarantee

Fund That Flip closed the loan on this property on February 24, 2021. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $41,674 to the developer at closing for a loan to purchase of 49.0%. Fund That Flip is holding back $10,751 for 3 months of pre-paid interest.

The construction budget is $409,251. Fund That Flip will finance $326,815 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 3 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 borrower intends to list the property for sale.

Over the course of the project, the developer will contribute an estimated $145,273 in equity, including an estimated $43,326 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 May 24, 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	$85,000	$41,674	10.7%
Purch.	$85,000	$41,674	10.7%
Construction Draw at Close	$0	$0	0.0%
Remaining Construction/Rehab	$409,251	$326,815	84.2%
Prepaid Int	$10,751	$10,751	2.8%
Closing	$8,760	$8,760	2.3%
Total	$513,762	$388,000	100.0%

Loan to Cost

	Cost	Amount Disbursed	Borrower Contribution	Loan to Cost
At close	$85,000	$41,674	$43,326	49.0%
Purch.	$85,000	$41,674	$43,326	49.0%
Construction Draw at Close	$0	$0	$0
Remaining Construction/Rehab	$409,251	$326,815	$82,436	79.9%
Prepaid Int	$10,751	$0	$10,751	0.0%
Closing	$8,760	$8,760	$8,760	100.0%
Total	$513,762	$377,249	$145,273	73.4%

Valuation

Valuation Method	Estimated Value	Amount Distributed	LTV
Purchase Price	$85,000	$41,674	49.0%
Appraised ARV:	$550,000	$388,000	70.5%
FTF Valuation:	$555,000	$388,000	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 4.33 miles of the subject, have a similar number of bedrooms, bathrooms, and square footage, and are of similar home style.

The internal valuation of $555,000 on the property is supported by the following data points:
• 6 comparable properties have recently sold between $455,000 and $562,500.
• Price per square foot of these comparable properties ranges from $136 to $175.
• Our internal valuation yielded a price per square foot of $163.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $550,000 for the property. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation.

In review of the appraisal, Fund That Flip noted the following items:
• The appraisal failed to appropriately account for a bedroom and a full bathroom as part of the planned construction.

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

About the Property

Details

Bedrooms	5
Full Bathrooms	4
Year Built	2021
Square Footage	3407 SF
Garage Spaces	3
Purchase Price	$85,000
Estimated Rehab Budget	$409,251
ARV	$555,000
Developer Equity	$145,273 plus closing & holding costs

Market Overview

• Mooresville is a city in Iredell County, NC

The subject property is:
    • 33 miles to Downtown Charlotte
    • 13 miles to Lake Norman
    • 10 miles to Davidson College

• 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 February 24, 2021. Your investment will begin accruing interest the day it clears escrow.

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

The full statement of work is available below.

Upon completion, the borrower intends to list the property 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 69.9%.
• 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.