Status: Repaid

Annual Return Term Remaining
8.75% -
Loan to ARV
60.0%
Investment Offering
$360,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Portfolio
Guarantee
Personal Guarantee
Underlying Security
1st Position

This deal does not have an active offering

Fuquay-Varina, NC

REPEAT BORROWER

Updates

  • 08/08/22

    Fund That Flip is pleased to inform you that all funds have now been received to pay off the loan in full. The following payments will be distributed to investors: June 2022 Partial Penalty Interest, July 2022 Partial Normal Interest, and July 2022 Partial Penalty Interest.

    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.

  • 08/04/22

    Fund That Flip is pleased to inform you that the developer has remitted a payoff wire for this deal. However, the deal has not yet been repaid in full as the developer failed to repay all outstanding interest. Our Servicing team is actively working to recover the remaining interest due. To return funds that have already been received, final principal payments have been processed to investors.

    As more updates are received surrounding the shortfall recovery, investors will be updated accordingly.

  • 05/26/22

    Based on the inspection report, this project is at 99.22% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 05/25/22.

  • 05/24/22

    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.

  • 05/24/22

    Based on the inspection report, this project is at 95.99% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 05/23/22.

  • 05/23/22

    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.

  • 05/06/22

    Based on the inspection report, this project is at 91.76% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 05/05/22.

  • 05/06/22

    Based on the inspection report, this project is at 91.76% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 05/05/22.

  • 05/05/22

    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.

  • 05/05/22

    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.

  • 04/04/22

    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.

  • 04/04/22

    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.

  • 04/04/22

    The updated maturity date for this loan is 6/18/2022.

    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 3-5 business days.

  • 02/16/22

    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.

  • 02/16/22

    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.

  • 01/21/22

    Based on the inspection report, this project is at 9.67% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 01/20/22.

  • 01/20/22

    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.

  • 01/20/22

    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 Portfolio
Underlying Security 1st Position
Guarantee Personal Guarantee

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

Fund That Flip has provided a first distribution of $19,021 to the developer at closing for a loan to purchase of 42.3%. Fund That Flip is holding back $11,430 for 3 months of pre-paid interest.

The construction budget is $360,000. Fund That Flip will finance $323,109 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.

Over the course of the project, the developer will contribute an estimated $80,739 in equity, including an estimated $25,979 at the time of closing. The total loan-to-ARV is 60.0%. There is a 3 month pre-payment penalty, meaning investors will earn interest through June 18, 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 $45,000 $19,021 5.3%
Purch. $45,000 $19,021 5.3%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $360,000 $323,109 89.8%
Prepaid Int $11,430 $11,430 3.2%
Closing $6,440 $6,440 1.8%
Total $422,870 $360,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $45,000 $19,021 $25,979 42.3%
Purch. $45,000 $19,021 $25,979 42.3%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $360,000 $323,109 $36,891 89.8%
Prepaid Int $11,430 $0 $11,430 0.0%
Closing $6,440 $6,440 $6,440 100.0%
Total $422,870 $348,570 $80,739 82.4%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $45,000 $19,021 42.3%
Appraised ARV: $560,000 $360,000 64.3%
FTF Valuation: $600,000 $360,000 60.0%

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

The internal valuation of $600,000 on the property is supported by the following data points:
FTF ARV per unit: $300,000
• 4 comparable properties have recently sold between $272,000 and $301,240.
• Price per square foot of these comparable properties ranges from $140 to $155.
• Our internal valuation yielded a price per square foot of $152.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $560,000 ($280,000 per unit) for the property. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation.

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 1979 SF
Purchase Price $45,000
Estimated Rehab Budget $360,000
ARV $600,000
Current Appraised Value $90,000
Developer Equity $80,739 plus closing & holding costs

Market Overview


• Fuquay-Varina is a city in Wake County, NC

The subject property is:
    • 19 mile to Raleigh, NC
    • 18 miles to North Carolina State University
    • 28 miles to Raleigh–Durham International Airport

• Retail Sales Sold: 99%
• Short Sales Sold: 0%
• REO Sold: 1%

  • data acquired from internal sources.

Project Strategy


The developer previously purchased this property. They obtained financing from Fund That Flip on March 18, 2021. Your investment will begin accruing interest the day it clears escrow.

The borrower will be building identical homes on adjacent lots. The specs and ARV of each home are the same and are listed above.

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

The full statement of work is available below.

Upon completion of construction, the borrower will list each of the properties 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 60.0%.
• 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.