Status: Repaid

Annual Return Term Remaining
8% -
Loan to ARV
68.0%
Investment Offering
$102,000
Min. Investment
$5,000
Term
6 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

This offering is fully funded

Corpus Christi, TX

REPEAT BORROWER

Updates

  • 08/05/21

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 07/28/2021.

    You will receive the following payments related to this payoff: 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 Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee x2

Fund That Flip closed the loan on this property on March 11, 2021. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $94,843 to the developers at closing . Fund That Flip is holding back $3,617 for 3 months of pre-paid interest.

The construction budget was $61,286. The property is complete and listed. Fund That Flip financed $47,068 of the total construction budget.

Over the course of the project, the developers will contribute an estimated $52,818 in equity, including an estimated $31,443 at the time of closing. The total loan-to-ARV is 68.0%. There is a 3 month pre-payment penalty, meaning investors will earn interest through June 11, 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 $126,286 $94,843 93.0%
Purch. $65,000 $47,776 46.8%
Construction Draw at Close $61,286 $47,068 46.1%
Remaining Construction/Rehab $0 $0 0.0%
Prepaid Int $3,617 $3,617 3.5%
Closing $3,540 $3,540 3.5%
Total $133,443 $102,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $126,286 $94,843 $31,443 75.1%
Purch. $65,000 $47,776 $17,224 73.5%
Construction Draw at Close $61,286 $47,068 $14,219 76.8%
Remaining Construction/Rehab $0 $0 $14,219
Prepaid Int $3,617 $0 $3,617 0.0%
Closing $3,540 $3,540 $3,540 100.0%
Total $133,443 $98,383 $52,818 73.7%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $65,000 $94,843 145.9%
FTF Valuation: $150,000 $102,000 68.0%

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

The internal valuation of $150,000 on the property is supported by the following data points:
•4 comparable properties have recently sold between $134,000 and $168,000.
• Price per square foot of these comparable properties ranges from $113 to $126.
• Our internal valuation yielded a price per square foot of $126.

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 1955
Square Footage 1182 SF
Garage Spaces 1
Purchase Price $65,000
Estimated Rehab Budget $61,286
ARV $150,000
Developer Equity $52,818 plus closing & holding costs

Market Overview


• Corpus Christi is a city in Nueces County, TX

    • 1.7 miles to Driscoll Children's Hospital
    •6.3 miles to North Beach
    • 6.7 miles to Texas A&M University-Corpus Christi

• Retail Sales Sold: 97%
• Short Sales Sold: 0%
• REO Sold: 3%

  • data acquired from internal sources.

Project Strategy


The developers previously bought this property. They received with financing from Fund That Flip on March 11, 2021. Your investment will begin accruing interest the day it clears escrow.

Construction is complete and included the following:
• Foundation Repair
• Roofing
• Windows
• Kitchen Updates
• Electrical and Plumbing
• Paint
• Flooring
• Landscaping

The full statement of work is available below.

The property is currently listed for sales.

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 68.0%.
• 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 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.