Investment rehab in Troutman, NC - Deal 42822

Annual Return	Term Remaining
8.25%	-

Troutman, NC

This fix and flip project with 3 bedrooms in Troutman, NC, was funded with a short-term residential rehab loan by private money lender Fund That Flip.

Updates

12/23/21

Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 12/14/2021.

You will receive the following payments related to this payoff: December 2021 Partial Normal Interest, December 2021 Partial Penalty 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.
12/14/21

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

The project is complete and the borrower recently requested a payoff statement.

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

Investors will continue to be updated as further developments occur.
11/02/21

Based on the inspection report, this project is at 97.24% complete per the scope of work.

Fund That Flip has processed a construction draw to reimburse developer expenses on 11/01/21.
11/01/21
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.
09/27/21

Based on the inspection report, this project is at 91.08% complete per the scope of work.

Fund That Flip has processed a construction draw to reimburse developer expenses on 09/24/21.
09/24/21
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.
09/01/21

Based on the inspection report, this project is at 81.74% complete per the scope of work.

Fund That Flip has processed a construction draw to reimburse developer expenses on 08/31/21.
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.
07/30/21

Based on the inspection report, this project is at 54.55% complete per the scope of work.

Fund That Flip has processed a construction draw to reimburse developer expenses on 07/29/21.
07/29/21
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.
07/02/21

Based on the inspection report, this project is at 38.83% 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.

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 June 11, 2021. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $20,504 to the developers at closing for a loan to purchase of 63.1%. Fund That Flip is holding back $4,324 for 3 months of pre-paid interest.

The construction budget is $162,253. Fund That Flip will finance $123,462 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 2 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 developers will contribute an estimated $59,822 in equity, including an estimated $11,996 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 September 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	$32,500	$20,504	13.4%
Purch.	$32,500	$20,504	13.4%
Construction Draw at Close	$0	$0	0.0%
Remaining Construction/Rehab	$162,253	$123,462	80.7%
Prepaid Int	$4,324	$4,324	2.8%
Closing	$4,710	$4,710	3.1%
Total	$203,787	$153,000	100.0%

Loan to Cost

	Cost	Amount Disbursed	Borrower Contribution	Loan to Cost
At close	$32,500	$20,504	$11,996	63.1%
Purch.	$32,500	$20,504	$11,996	63.1%
Construction Draw at Close	$0	$0	$0
Remaining Construction/Rehab	$162,253	$123,462	$38,791	76.1%
Prepaid Int	$4,324	$0	$4,324	0.0%
Closing	$4,710	$4,710	$4,710	100.0%
Total	$203,787	$148,676	$59,822	73.0%

Valuation

Valuation Method	Estimated Value	Amount Distributed	LTV
Purchase Price	$32,500	$20,504	63.1%
FTF Valuation:	$219,000	$153,000	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 0.7 miles of the subject, have a similar number of bedrooms, bathrooms, and square footage, and are of similar home style.

The internal valuation of $219,000 on the property is supported by the following data points:
• 3 comparable properties have recently sold between $239,000 and $312,000.
• Price per square foot of these comparable properties ranges from $156 to $175.
• Our internal valuation yielded a price per square foot of $140.

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	1579 SF
Garage Spaces	1
Purchase Price	$32,500
Estimated Rehab Budget	$162,253
ARV	$219,000
Developer Equity	$59,822 plus closing & holding costs

Market Overview

• Troutman is a city in Iredell County, NC
    • 6.7 miles to Lake Norman
    • 9.8 miles to downtown Statesville, NC
    • 16.2 miles to Davidson College
• Retail Sales Sold: 97%
• Short Sales Sold: 0%
• REO Sold: 3%

data acquired from internal sources.

Project Strategy

The developers bought this property with financing from Fund That Flip on June 11, 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
• Roofing
• Siding
• Drywall
• Interior Paint
• Hardwood Flooring
• Electrical

The full statement of work is available below.

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 developers 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 developers choose not to complete the project.

Mitigating Factors:
• The developers have 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 developers are 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.