Status: Repaid

Annual Return Term Remaining
10% -
Loan to ARV
69.9%
Investment Offering
$4,750,000
Min. Investment
$5,000
Term
6 mo.
Guarantee
Personal Guarantee
Underlying Security
1st Position

This offering is fully funded

Boston, MA

REPEAT BORROWER

Updates

  • 12/03/21

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 12/01/2021.

    You will receive the following payments related to this payoff: August 2021 Normal Interest, September 2021 Normal Interest, October 2021 Normal Interest, October 2021 Partial Penalty Interest, November 2021 Normal Interest, November 2021 Partial Penalty Interest, December 2021 Partial Normal Interest, 3 Late Fees, 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.

  • 11/18/21

    The monthly interest payment for October 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.

  • 11/03/21

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

    After gaining a better understanding of additional closings and liquidation events, the developer has represented that they are confident that this loan will be repaid within 60 days.

    Given the delay in payment and to maintain pressure on the developer, Fund That Flip is currently preparing to send out a Notice of Default.

    Investors will continue to be updated as further developments occur.

  • 10/19/21

    The monthly interest payment for September 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.

  • 09/22/21

    The monthly interest payment for August 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 $6,500,000 $4,641,231 97.7%
Purch. $6,500,000 $4,641,231 97.7%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $1 $0 0.0%
Prepaid Int $26,894 $26,894 0.6%
Closing $81,875 $81,875 1.7%
Total $6,608,770 $4,750,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $6,500,000 $4,641,231 $1,858,769 71.4%
Purch. $6,500,000 $4,641,231 $1,858,769 71.4%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $1 $0 $1 0.0%
Prepaid Int $26,894 $0 $26,894 0.0%
Closing $81,875 $81,875 $81,875 100.0%
Total $6,608,770 $4,723,106 $1,967,539 71.5%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $6,500,000 $4,641,231 71.4%
Appraised ARV: $6,750,000 $4,750,000 70.4%
FTF Valuation: $6,800,000 $4,750,000 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 0.83 miles of the subject, have a similar number of bedrooms, bathrooms, and square footage, and are of similar home style.

The internal valuation of $6,800,000 on the property is supported by the following data points:
• 4 comparable properties have recently sold between $3,000,000 and $8,200,000.
    • All 4 comparable properties used were sold with approvals in place at the time of sale.
• Price lot square foot of these comparable properties ranges from $364 to $736.
    • Our internal valuation yielded a price per square foot of $528.
• Price approved building square foot of these comparable properties ranges from $136 to $231.
    • Our internal valuation yielded a price per square foot of $174.
• Price approved unit of these comparable properties ranges from $195,238 to $227,647.
    • Our internal valuation yielded a price per square foot of $214,034.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an As-Is value of $6,750,000 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

Purchase Price $6,500,000
Estimated Rehab Budget $1
ARV $6,800,000
Developer Equity $1,967,539 plus closing & holding costs

Market Overview


• Boston is a city in Suffolk County, MA

The subject property is:
    • 2 miles to Downtown Boston
    • 3 miles to Boston Logan International Airport
    • 5 miles to Massachusetts Institute of Technology

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on July 15, 2021. Your investment will begin accruing interest the day it clears escrow.

There will not be any construction done over the course of Fund That Flip's loan. The developer will be preparing the property for the construction of an approved 30-unit condo building. They will seek construction financing in order to exit Fund That Flip's loan.

The proposed development will include 30 total condominium units including twelve (12) one-bedroom units, twelve (12) two-bedroom units, and six (6) three-bedroom units. Additionally, there will be thirty-five (35) on-site/off-street garage parking spaces at grade with vehicular access via East Second Street. The site is approximately 12,890 square feet of land and the proposed and approved structure will be approximately 39,750 square feet.

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 69.9%.
• 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.