Status: Repaid

Annual Return Term Remaining
8.5% -
Loan to ARV
69.7%
Investment Offering
$129,000
Min. Investment
$5,000
Term
6 mo.
Guarantee
Personal Guarantee x2
Underlying Security
1st Position

This offering is fully funded

Durham, NC

REPEAT BORROWER

Updates

  • 03/14/22

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 02/28/2022.

    You will receive the following payments related to this payoff: January 2022 Partial Penalty Interest, February 2022 Normal Interest, February 2022 Penalty Interest, 1 Late Fee, 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.

  • 01/03/22

    Fund That Flip is pleased to inform you that a past due interest payment on this loan has been received and is being scheduled for payment to investors.

    You can expect to see the funds deposited in your account within 3-5 business days.

    Investors will be updated as further developments occur.

  • 12/17/21

    The monthly interest payment for November has not yet been received.

    A late fee has been assessed and will be distributed according to the investor’s pro-rata share of the investment, upon payoff.

    Fund That Flip will continue to monitor this situation closely and investors will be notified as further developments occur.

Use of Proceeds


  Cost Use of Proceeds % of Loan
At close $345,000 $122,016 94.6%
Purch. $345,000 $122,016 94.6%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $1 $0 0.0%
Prepaid Int $3,404 $3,404 2.6%
Closing $3,580 $3,580 2.8%
Total $351,985 $129,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $345,000 $122,016 $222,984 35.4%
Purch. $345,000 $122,016 $222,984 35.4%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $1 $0 $1 0.0%
Prepaid Int $3,404 $0 $3,404 0.0%
Closing $3,580 $3,580 $3,580 100.0%
Total $351,985 $125,596 $229,969 35.7%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $345,000 $122,016 35.4%
FTF Valuation: $185,000 $129,000 69.7%

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 lots in the analysis are within 9.3 miles of the subject, have a similar number of bedrooms, bathrooms, and square footage, and are of similar home style.

The internal valuation of $185,000 on the property is supported by the following data points:
• 5 comparable properties have recently sold between $129,000 and $556,500.
• Price per square foot of these comparable lots ranges from $1.02 to $2.28.
• Our internal valuation yielded a price per square foot of $1.51.

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

About the Property


Details

Purchase Price $345,000
Estimated Rehab Budget $1
ARV $185,000
Current Appraised Value $300,000
Developer Equity $229,969 plus closing & holding costs

Market Overview


• Durham is a city in Durham County, NC

    • 5 miles to Durham, NC
    • 5.5 miles to Duke University
    • 10 miles to Chapel Hill, NC

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on July 27, 2021. Your investment will begin accruing interest the day it clears escrow.

The developer is purchasing this land with the intention to work on a townhome development project. They will be acquiring approvals and permits from the city for the townhome project during the course of Fund That Flip's loan. The townhome development will not start during the course of the loan.

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 69.7%.
• 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 6 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.