Status: Repaid

Annual Return Term Remaining
9.25% -
Loan to ARV
52.1%
Investment Offering
$625,000
Min. Investment
$5,000
Term
3 mo.
Underlying Asset
Two Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

East Boston, MA

REPEAT BORROWER

Updates

  • 05/21/21

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 05/11/2021.

    You will receive the following payments related to this payoff: May 2021 Normal Interest, June 2021 Normal Interest, July 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.

Investment Summary


Type No Rehab/No Construction
Underlying Asset Two Family
Underlying Security 1st Position
Guarantee Personal Guarantee

Fund That Flip closed the loan on this property on April 01, 2021. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $602,140 to the developer at closing for a loan to as-is of 95.6%. Fund That Flip is holding back $18,734 for 2 months of pre-paid interest.

The borrower purchased the property for $630,000. The developer acquired approved permits for a condominium new build project associated with a lot of the property. Their cost for the permitting process is $28,900. The adjusted cost basis at the time of closing was $658,900. Fund That Flip will finance the permitting costs for the borrower. The developer plans to sell the property along with the permit approvals.

Over the course of the project, the developer will contribute an estimated $94,510 in equity, including an estimated $56,760 at the time of closing. The total loan-to-AS-IS is 52.1%. There is a 3 month pre-payment penalty, meaning investors will earn interest through July 01, 2021, even if paid back earlier. The term of the underlying loan is 3 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 $658,900 $602,140 96.3%
Purch. $630,000 $588,130 94.1%
Construction Draw at Close $28,900 $14,010 2.2%
Remaining Construction/Rehab $1 $0 0.0%
Prepaid Int $18,734 $18,734 3.0%
Closing $4,125 $4,125 0.7%
Total $681,760 $625,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $658,900 $602,140 $56,760 91.4%
Purch. $630,000 $588,130 $41,870 93.4%
Construction Draw at Close $28,900 $14,010 $14,890 48.5%
Remaining Construction/Rehab $1 $0 $14,891 48.5%
Prepaid Int $18,734 $0 $18,734 0.0%
Closing $4,125 $4,125 $4,125 100.0%
Total $681,760 $606,266 $94,510 88.9%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $630,000 $602,140 95.6%
FTF Valuation: $1,200,000 $625,000 52.1%

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

The internal valuation of $1,200,000 on the property is supported by the following data points:
• 4 comparable properties have recently sold between $620,000 and $820,000.
• Price per square foot of these comparable properties ranges from $285 to $440.
• Our internal valuation yielded a price per square foot of $414.

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

About the Property


Details

Bedrooms 2
Full Bathrooms 2
Year Built 1938
Square Footage 2898 SF
Purchase Price $630,000
Estimated Rehab Budget $28,901
ARV $1,200,000
Developer Equity $94,510 plus closing & holding costs

Market Overview


• East Boston is a city in Suffolk County, MA

    • 3 miles to Boston Logan International Airport
    • 4 miles to Downtown, Boston
    • 9 miles to Harvard University

• Retail Sales Sold: 96%
• Short Sales Sold: 0%
• REO Sold: 4%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on April 01, 2021. Your investment will begin accruing interest the day it clears escrow.

The developer acquired approved permits for a condominium new build project associated with a lot of the property. The developer plans to sell the property along with the permit approvals.

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 52.1%.
• 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 3 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.