Status: Repaid

Annual Return Term Remaining
8% -
Loan to ARV
69.4%
Investment Offering
$125,000
Min. Investment
$5,000
Term
6 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

This offering is fully funded

Statesville, NC

REPEAT BORROWER

Updates

  • 10/07/21

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 09/29/2021.

    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.

  • 09/07/21

    Based on the inspection report, this project is at 91.86% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 09/03/21.

  • 09/03/21

    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.

  • 08/09/21

    The updated maturity date for this loan is 11/18/2021.

    The developer has requested a loan extension to finalize the completion of the rehab on the project.

    After communication with the developer about the revised timeline for the project, Fund That Flip has approved the customer's request.

    The maturity date will be extended an additional three months.

    Investors will receive their share of collected extension fees in the next 5-8 business days.

  • 08/06/21

    Based on the inspection report, this project is at 74.27% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 08/05/21.

  • 07/02/21

    Based on the inspection report, this project is at 62.15% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 07/01/21.

  • 07/01/21

    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.

  • 06/04/21

    Based on the inspection report, this project is at 48.84% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 06/03/21.

  • 06/03/21

    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.

  • 05/13/21

    Based on the inspection report, this project is at 35.63% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 05/12/21.

  • 05/11/21

    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 New Construction
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee x2

Fund That Flip closed the loan on this property on February 18, 2021. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $13,497 to the developer at closing for a loan to purchase of 54.0%. Fund That Flip is holding back $3,244 for 3 months of pre-paid interest.

The construction budget is $128,820. Fund That Flip will finance $104,609 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. Upon completion of construction, the borrower intends to list the property for sale.

Over the course of the project, the developer will contribute an estimated $42,608 in equity, including an estimated $11,503 at the time of closing. The total loan-to-ARV is 69.4%. There is a 3 month pre-payment penalty, meaning investors will earn interest through May 18, 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 $25,000 $13,497 10.8%
Purch. $25,000 $13,497 10.8%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $128,820 $104,609 83.7%
Prepaid Int $3,244 $3,244 2.6%
Closing $3,650 $3,650 2.9%
Total $160,714 $125,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $25,000 $13,497 $11,503 54.0%
Purch. $25,000 $13,497 $11,503 54.0%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $128,820 $104,609 $24,211 81.2%
Prepaid Int $3,244 $0 $3,244 0.0%
Closing $3,650 $3,650 $3,650 100.0%
Total $160,714 $121,756 $42,608 75.8%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $25,000 $13,497 54.0%
FTF Valuation: $180,000 $125,000 69.4%

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

The internal valuation of $180,000 on the property is supported by the following data points:
• 4 comparable properties have recently sold between $164,490 and $220,000.
• Price per square foot of these comparable properties ranges from $94 to $142.
• Our internal valuation yielded a price per square foot of $124.

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 2021
Square Footage 1446 SF
Garage Spaces 1
Purchase Price $25,000
Estimated Rehab Budget $128,820
ARV $180,000
Developer Equity $42,608 plus closing & holding costs

Market Overview


• Statesville is a city in Iredell County, NC

The subject property is:
    • 43 miles to Winston-Salem
    • 42 miles to Charlotte
    • 12 miles to Lake Norman State Park

• Retail Sales Sold: 92%
• Short Sales Sold: 0%
• REO Sold: 8%

  • data acquired from internal sources.

Project Strategy


The developer previously purchased this property. They obtained financing from Fund That Flip on February 18, 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
• Electrical
• HVAC
• Roofing
• Siding
• Cabinets & Countertops
• Appliances

The full statement of work is available below.

Upon completion of construction, the borrower will 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 69.4%.
• 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.