Status: Repaid

Annual Return Term Remaining
8.75% -
Loan to ARV
70.0%
Investment Offering
$1,085,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x3
Underlying Security
1st Position

This deal does not have an active offering

Emerald Isle, NC

REPEAT BORROWER

Updates

  • 07/19/22

    Fund that Flip is pleased to inform you that the loan has been paid off. The Payoff Date is 06/22/2022.

    You will receive the following payments related to this payoff: June 2022 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.

  • 06/15/22

    Based on the inspection report, this project is at 97.1% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 06/14/22.

  • 06/14/22

    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.

  • 06/01/22

    Based on the inspection report, this project is at 85.52% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 05/31/22.

  • 05/27/22

    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.

  • 05/04/22

    Based on the inspection report, this project is at 71.05% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 05/03/22.

  • 05/03/22

    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.

  • 03/13/22

    Based on the inspection report, this project is at 58.35% complete per the scope of work.

    Fund That Flip has processed a construction draw to reimburse developer expenses on 03/11/22.

Investment Summary


Type New Construction
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee x3

Fund That Flip closed the loan on this property on December 07, 2021. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $569,681 to the developers at closing. Fund That Flip is holding back $34,625 for 3 months of pre-paid interest.

The borrower purchased the property for $350,000. The total construction budget is $1,010,000. $459,550 worth of construction has been completed per an independent 3rd party inspector. Fund That Flip will finance 452,569.16 of the remaining $550,450 of the borrower's 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 4 construction draws, but may schedule additional inspections as needed. The final draw will be released after all work is verified to be complete. Upon completion of work, the developers plan to sell the property.

Over the course of the project, the developers will contribute an estimated $482,217 in equity, including an estimated $239,869 at the time of closing. The total loan-to-ARV is 70.0%. There is a 3 month pre-payment penalty, meaning investors will earn interest through March 07, 2022, even if paid back earlier. The term of the underlying loan is 12 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 $809,550 $569,681 52.5%
Purch. $350,000 $191,848 17.7%
Construction Draw at Close $459,550 $377,833 34.8%
Remaining Construction/Rehab $550,450 $452,569 41.7%
Prepaid Int $34,625 $34,625 3.2%
Closing $28,125 $28,125 2.6%
Total $1,422,750 $1,085,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $809,550 $569,681 $239,869 70.4%
Purch. $350,000 $191,848 $158,152 54.8%
Construction Draw at Close $459,550 $377,833 $81,717 82.2%
Remaining Construction/Rehab $550,450 $452,569 $179,598 82.2%
Prepaid Int $34,625 $0 $34,625 0.0%
Closing $28,125 $28,125 $28,125 100.0%
Total $1,422,750 $1,050,375 $482,217 73.8%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $350,000 $569,681 162.8%
FTF Valuation: $1,550,000 $1,085,000 70.0%

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 .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 $1,550,000 on the property is supported by the following data points:
• 3 comparable properties have recently sold between $1,125,000 and $1,400,000.
• Price per square foot of these comparable properties ranges from $310 to $376.
• Our internal valuation yielded a price per square foot of $352.

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

About the Property


Details

Bedrooms 6
Full Bathrooms 4
Year Built 2022
Square Footage 4400 SF
Garage Spaces 2
Purchase Price $350,000
Estimated Rehab Budget $1,010,000
ARV $1,550,000
Developer Equity $482,217 plus closing & holding costs

Market Overview


• Emerald Isle is a city in Carteret County, NC

    • <.1 miles to the Atlantic Ocean
    • 3 miles to Emerald Isle Beach, NC
    • 5 miles to Emerald Isle Beach & Pool Club, NC

• Retail Sales Sold: 97.5%
• Short Sales Sold: 0%
• REO Sold: 2.5%

  • data acquired from internal sources.

Project Strategy


The developers previously bought this property. They will receive financing from Fund That Flip on December 07, 2021. Your investment will begin accruing interest the day it clears escrow.

Construction has already begun and includes the following:
• Site Prep
• Excavation
• Framing
• Windows
• Siding
• Paint
• Landscaping
• Pool
• Plumbing
• Appliances

The full statement of work is available below.

The developers plan to sell the property upon completion of work.

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 70.0%.
• 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 12 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.