Status: Repaid

Annual Return Term Remaining
10% -
Loan to ARV
64.9%
Investment Offering
$2,200,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

Updates


Fund That Flip is pleased to communicate that this payoff has been received and is being processed. Distributions to our investors will be paid in the next 5 - 10 business days.

Please watch for an additional message from Fund That Flip to follow shortly via email, which encompasses further detail surrounding the overall return on investment for investors.

We thank you for your investment with us, and we wish you the best on your next Investment. If you have any questions, please feel free to contact one of our customer success team members.

We received confirmation from the borrower and lender that the refinance closed Friday late afternoon. Because the home was refinanced as a primary residence, we will receive funds in three days due to the rescission period per the Truth in Lending Act.

We will provide an update upon the receipt of the funds mid-week.

Late yesterday Fund That Flip received a Clear to Close from the refinance lender taking us out on this property. The closing is currently scheduled for today, 1/31/2020.

We will provide an update later this evening.

Fund That Flip has been in communication with the developer and the refinance lender about the current state of the project.

Fund That Flip has received a Closing Disclosure with a target close date of 1/31/2020.

We will continue to engage with all parties involved in an effort to bring this loan to close.

Investors will continue to be updated as further developments occur.

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

A late fee has been assessed and will be distributed according to 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.

Fund That Flip has had weekly conference calls with the developer over the course of the last few months. These calls have involved the developer, the refinance lender, their legal counsel, and the builder.

The developer has remained transparent on the current status of the project and their exit strategy.

The rehab continues to progress and timely interest payments continue to be made on a monthly basis.

The developer's lender has confirmed that both the appraisal and title report have been completed in an effort to close on the refinance.

The developer's lender has represented that they are only awaiting a few additional items to receive the clear to close.

Investors will continue to be updated as further developments occur.

Fund That Flip has ordered an inspection of this property to monitor the progress.

Based on the Inspection Report this project is at 75% completion.

Fund That Flip has processed a construction draw to reimburse developer expenses.

Investors will be notified as further developments occur.

Fund That Flip has ordered an inspection of this property to monitor the progress.

Based on the Inspection Report this project is at 69% completion.

Fund That Flip has processed a construction draw to reimburse developer expenses.

Investors will be notified as further developments occur.

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

Fund That Flip has ordered an inspection on the property to monitor progress on the rehab.

The inspection has been scheduled for next week. At that time, Fund That Flip will release a draw based on percentage complete.

Investors will continue to be updated as further developments occur.

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 bank account within 5 business days.

Investors will be updated as further developments occur.

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

A late fee has been assessed and will be distributed according to 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.

Fund That Flip has been in communication with the developer. Despite delays in the process due to challenges with city/municipality building code variances, the project has remained in good standing with monthly interest accrual being remitted timely for distribution to investors, as well as property taxes and casualty coverages kept up to date.

The variance issue has been resolved and the project is again being progressed towards a certificate of occupancy (COO) and completion.

Fund That Flip has both visited the site and performed a third party inspection of progress to date. The project is now advanced to 63% completion and Fund That Flip has approved a draw request. We have also reviewed and approved the developer's request to extend the loan to 12.1.2019. This will allow the developer sufficient additional time to progress the project to the point of COO for refinancing. A fee will be collected for the extension period and distributed to investors upon payoff.

Further information will be shared with investors as it comes available.

Fund That Flip has ordered an inspection of this property to monitor the progress.

Based on the Inspection Report this project is at 63% completion.

The developer has requested FTF to fund their draw. We are reviewing the request further with the developer and we will post an additional update later this week with next steps.

Investors will continue to be updated as further developments occur.

Fund That Flip has been in further communication with the developer and has reviewed the project for refinancing options. At this time, it does not make economic sense to re-originate the transaction outright.

The developer reports that they cleared final building variance issues with the city/municipality and have now begun advancing the project again using their own funds towards construction. We have requested the developer provide detailed documentation regarding these milestones.

The developer continues to remit timely interest payments for distribution to investors and has maintained property taxes and insurance coverages in good standing.

Currently, obtaining a Certificate of Occupancy (COO) is the hurdle preventing the developer from completing the conventional refinance option and repaying in full. The developer's request is to extend the loan for six months to December of 2019. The developer agreed that upon securing COO they would seek to exit the loan and repay in full at that time.

Fund That Flip is awaiting receipt of documentation from the developer to verify these circumstances. We are scheduling a complete project inspection to confirm the current level of completion and ultimately identify if the project is ready to be extended and further funded to achieve an acceptable exit strategy.

Should Fund That Flip elect to approve the developer's extension request, a fee will be mandated to be paid up front for immediate distribution to investors.

Further updates will be released to investors as they come available. Thank you for investing with Fund That Flip.

Fund That Flip has been in communication with the developer.

They have represented the plans to refinance have fallen thru due to the incomplete state of the project at this time. The lender they have a relationship with requires the project to be closer to completion in order to be approved for financing.

The developer continues to remit interest payments for distribution to investors, the most recent payment has been received by Fund That Flip on 5.8.2019 and will be released upon clearing our account.

A request has been made to refinance the project with Fund That Flip. The developer is seeking an additional 6-9 months to complete the project and perform a conventional long-term refinance. They have expressed an intention to retain ownership of the project at completion.

Based on the developer maintaining a relationship in good standing with our firm, Fund That Flip is moving forward with a review of the project by underwriting to determine viability and parameters needed to further support construction completion.

We will share additional updates towards refinance progress with investors as they come available.

The developer continues to represent that the loan will be paid off via refinance and that they are approaching the finish line, having received back an acceptable appraisal.

Fund That Flip has received payment arrangements from the developer, and we are awaiting the funds to clear our account before preparing distribution to investors.

We will share further updates with investors they come available.

The monthly interest payment for March has not been received.

A late fee has been assessed and will be distributed according to 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.

Fund That Flip has been in contact with the developer's new lender regarding the impending refinance of this property.

While delays continue, the new lender has represented that the loan was reviewed by the CEO of the firm and has received final approval as a construction-to-permanent financing residential loan.

The new lender has represented that they will be self-funding the transaction and are not dependent on a loan aggregator or other outlet.

We have requested to be updated when the closing date is scheduled and will share additional updates with investors as they come available.

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 bank account within 5 business days.

Investors will be updated as further developments occur.

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

Fund That Flip is initiating communication with the developer to obtain payment for interest due.

A late fee has been assessed and will be distributed according to 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.

Fund That Flip has been in communication with the developer.

They have expressed awareness of the impending extended maturity date. The developer has scheduled the past due interest payment and we are awaiting funds to clear. Distribution to investors will be arranged as soon as funds clear.

The developer has represented that if their refinance loan is not in closing by the 7th of March they will schedule the next up-to-date interest payment for remittal to Fund That Flip.

They've represented that delays in refinance have been due in part to transitioning from a commercial refinance loan to a conventional refinance loan, requiring further disclosure and compliance steps (TRID), delaying the speed with which they can achieve a clear-to-close and finalize the refinance.

Fund That Flip has been in communication with the refinance lender as well and they have asserted that clear-to-close is imminent and anticipated in the next 7-10 business days.

Fund That Flip will report further updates as they come available.

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

Fund That Flip is initiating communication with the developer to obtain payment for interest due.

A late fee has been assessed and will be distributed according to 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.

Fund That Flip has been in communication with the developer.

They continue to represent a closing in the month of February. Fund That Flip has provided a payoff statement thru the end of February directly to the developer's new lender.

We have requested the developer to make interest payment arrangements promptly if the loan will not be closing in the next two weeks.

Fund That Flip will release additional developments to investors, as they come available.

Fund That Flip has been in communication with the developer.

They are currently working towards refinancing of this project.

Their lender has reached out to our firm and in cooperation, we have provided a Verification of Mortgage and will be providing a payoff statement good thru February 2019.

Further developments will be shared with investors as they come available.

Fund That Flip has ordered an inspection of this property to monitor the progress.

The project is moving along as planned and is at 48% completion.

Fund That Flip has processed a construction draw to the developer.

Investors will be notified as further developments occur.

The loan on this project matures on 11.30.2018. The developer has contacted Fund That Flip and requested a loan extension to finalize completion and refinance of the project.

After communication with the developer about the revised timeline for the project, Fund That Flip has approved this request.

The maturity date will be extended three months from the current maturity date.

Investors will receive a one-time fee of 50bp based on their pro rata ownership.

The extension fee will be processed to investors upon payoff.

Fund That Flip has received up to date payment for October interest on 11.13.2018 and it has been distributed to investors.

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

Fund That Flip is in communication with the Borrower to obtain payment for interest due.

A late-fee has been assessed and will be paid out to investors upon payoff.

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

Fund That Flip has ordered an inspection of this property to monitor the progress.

The project is moving along as planned and is at 38% completion.

Fund That Flip has processed a construction draw to the developer.

Investors will be notified as further developments occur.

Fund That Flip has verified that the borrower is 40% complete with the project and they are is current on all of their payments. The developer expressed challenges with the city inspection process and inspector availability. The borrower has made progress since the last draw and Fund That Flip has ordered an inspection to progress the work. After speaking with the borrower and discussing the construction timeline, we are extending this loan to allow the redeveloper to complete the project.

Fund That Flip has been in communication with the redeveloper about the progress of the project. The project continues to progress well, and we expecting a draw request in a few weeks.

We will continue to monitor the rehab and update investors as further developments occur.

Fund That Flip has ordered an inspection of this property to monitor the progress.

The project is moving along as planned and is at 33% completion.

Fund That Flip has processed a construction draw to the developer.

Investors will be notified as further developments occur.

Fund That Flip has ordered an inspection of this property to monitor the progress.

The project is moving along as planned and is at 20% completion.

Fund That Flip has processed a construction draw to the developer.

Investors will be notified as further developments occur.

The project is moving along as planned and is at 7% completion.

Fund That Flip has processed a construction draw to the developer.

Investors will be notified as further developments occur.

Fund That Flip has ordered an inspection of this property to monitor the progress.

Investors will be updated as further developments occur.

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 August 30, 2017. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $624,125 to the developer at closing for a loan to purchase of 62.7%. Fund That Flip is holding back $125,125 for 6 months of pre-paid interest.

The construction budget is $1,841,000. Fund That Flip will finance $1,379,750 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 8 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 developer will contribute an estimated $1,028,250 in equity, including an estimated $370,875 at the time of closing. The total loan-to-ARV is 64.9%. There is a 3 month pre-payment penalty, meaning investors will earn interest through November 30, 2017, even if paid back earlier. The term of the underlying loan is 12 months with an option to extend for an additional 3 months. Should Fund That Flip choose to grant the extension, investors will earn an additional one-time 0.5% fee on their investment.

Use of Proceeds


  Cost Use of Proceeds % of Loan
Purchase Price $995,000 $624,125 28.4%
Expected Rehab Budget $1,841,000 $1,379,750 62.7%
Prepaid Interest Amount $125,125 $125,125 5.7%
Closing Fees $71,000 $71,000 3.2%
Total $3,032,125 $2,200,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
Purchase Price $995,000 $624,125 $370,875 62.7%
Expected Rehab Budget $1,841,000 $1,379,750 $461,250 74.9%
Prepaid Interest Amount $125,125 $0 $125,125 0.0%
Closing Fees $71,000 $71,000 $71,000 100.0%
Total $3,032,125 $2,074,875 $1,028,250 68.4%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $995,000 $624,125 62.7%
Appraised ARV: $3,800,000 $2,200,000 57.9%
FTF Valuation: $3,389,000 $2,200,000 64.9%

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 5.5 miles of the subject, are similar in bedrooms, bathrooms, and square footage, and similar in home style.

The internal valuation of $3,389,000 on the property is supported by the following data points:
• Five comparable properties have recently sold between $2,700,000 and $4,150,000.
• Price per square foot of these comparable properties ranges from $443 to $677.
• Our internal valuation yielded a price per square foot of $477.

Fund That Flip supplemented the internal valuation with an appraisal. The appraisal indicated an ARV of $3,800,000 for the property.

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

About the Property


Details

Bedrooms 5
Full Bathrooms 4
Year Built 2017
Square Footage 7112 SF
Garage Spaces 3
Purchase Price $995,000
Estimated Rehab Budget $1,841,000
ARV $3,389,000
Current Appraised Value $995,000
Developer Equity $1,028,250 plus closing & holding costs

Market Overview


• Locust Valley is a hamlet located in Nassau County on Long Island, NY
    • The subject property is 32 miles to Midtown Manhattan, NY
    • 31 miles to Brooklyn, NY
    • Known for its schools and prestigious golf clubs, Locust Valley is an unincorporated area of the Town of Oyster Bay

• Retail Sales Sold: 96%
• Short Sales Sold: 3%
• REO Sold: 1%

  • data acquired from internal sources.

Project Strategy


The developer bought this property with financing from Fund That Flip on August 30, 2017. Your investment will begin accruing interest the day it clears escrow.

Currently, a 3 bedroom, 2 bathroom, 1,900 square foot ranch sits on this property. The first phase of this project is to demolish this existing home. After demolition is complete, construction of the new structure will begin. The finished product will be a high-end, 5 bedroom, 4.5 bathroom, 7,000+ square foot home. The rough project timeline includes 1 month for permitting, 1 month for demolition and 7 months for construction. The developer intends to refinance Fund That Flips loan within 12 months. The plan to refinance is already in process. This refinance will give the developer more flexibility to determine the optimal time to re-market the home for sale, which is the ultimate goal.

Construction will begin shortly after loan closing and includes the following:
• Demo of Existing Structure on Property
• Foundation
• Framing
• Roofing
• Windows
• Exterior Brickwork
• HVAC
• Plumbing & Electrical
• Insulation
• Tile & Wood Flooring
• Kitchen Cabinets

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 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 64.9%.
• 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 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.