Status: Repaid

Annual Return Term Remaining
9% -
Loan to ARV
67.5%
Investment Offering
$743,000
Min. Investment
$5,000
Term
9 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

This offering is fully funded

Dallas, TX

REPEAT BORROWER

Updates

  • 02/25/22

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 02/16/2022.

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

Investment Summary


Type New Construction
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee

Fund That Flip closed the loan on this property on July 29, 2021. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $696,062 to the developer at closing. Fund That Flip is holding back $21,094 for 3 months of pre-paid interest.

The property is over 90% complete. The construction budget is $470,300. Fund That Flip will finance $202,586 of the total construction 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 1 construction draw, but may schedule additional inspections as needed. The final draw will be released after all work is verified to be complete. Once construction is complete, the developer plans to sell the property.

Over the course of the project, the developer will contribute an estimated $243,391 in equity. The total loan-to-ARV is 67.5%. There is a 3 month pre-payment penalty, meaning investors will earn interest through October 29, 2021, even if paid back earlier. The term of the underlying loan is 9 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 $638,500 $696,062 93.7%
Purch. $200,000 $507,175 68.3%
Construction Draw at Close $438,500 $188,888 25.4%
Remaining Construction/Rehab $31,800 $13,698 1.8%
Prepaid Int $21,094 $21,094 2.8%
Closing $12,145 $12,145 1.6%
Total $703,539 $743,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $638,500 $696,062 -$57,562 109.0%
Purch. $200,000 $507,175 -$307,175 253.6%
Construction Draw at Close $438,500 $188,888 $249,612 43.1%
Remaining Construction/Rehab $31,800 $13,698 $267,714 43.1%
Prepaid Int $21,094 $0 $21,094 0.0%
Closing $12,145 $12,145 $12,145 100.0%
Total $703,539 $721,906 $243,391 102.6%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $200,000 $696,062 348.0%
FTF Valuation: $1,100,000 $743,000 67.5%

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

The internal valuation of $1,100,000 on the property is supported by the following data points:
• 6 comparable properties have recently sold between $1,077,000 and $1,270,000.
• Price per square foot of these comparable properties ranges from $281 to $382.
• Our internal valuation yielded a price per square foot of $323.

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

About the Property


Details

Bedrooms 4
Full Bathrooms 4
Year Built 2019
Square Footage 3401 SF
Garage Spaces 2
Purchase Price $200,000
Estimated Rehab Budget $470,300
ARV $1,100,000
Developer Equity $243,391 plus closing & holding costs

Market Overview


• Dallas is a city in Dallas County, TX

    • 2.3 miles to Dallas Love Field Airport
    • 2.6 miles to UT Southwestern Medical Center
    • 6.3 miles to Dallas Downtown Historic District

• Retail Sales Sold: 98%
• Short Sales Sold: 1%
• REO Sold: 1%

  • data acquired from internal sources.

Project Strategy


The developer previously bought this property. They received financing from Fund That Flip on July 29, 2021. Your investment will begin accruing interest the day it clears escrow.

Construction is almost complete and included the following:
• Cabinets
• Appliances
• Exterior Stucco
• Flooring
• Paint
• Fencing
• Windows & Doors
• Electrical, Plumbing, & HVAC
• Framing & Insulation

The full statement of work is available below.

Once construction is complete, the developer plans to sell the property.

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 67.5%.
• 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 9 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.