Browse our commonly asked questions and learn why real estate investors
choose Fund That Flip as their primary platform.
Find answers below or check out our blog to learn more about what's new in our business.Learn More
Fund That Flip is an online investment platform for residential real estate redevelopment projects. Thousands of distressed homes hit the market every day. Many of these homes are not suitable for home buyers or tenants to live in. Our network of redevelopers purchases and rehabilitates these homes, improving neighborhoods and creating value for local communities.
Traditional financing for these projects isn't always available. We source, underwrite and originate projects from experienced developers. After perfecting the loan, we offer accredited investors the opportunity to invest in BDNs related to each project. This allows you to invest as little as $5,000 per project to achieve diversity while helping restore neighborhoods around the country.
Fund That Flip is primarily a technology platform that facilitates the financing of residential redevelopment projects. We provide basic screening and due diligence of each redeveloper and their projects before they are made available on our platform to accredited investors. We raise the level of transparency and ease-of-use so investors can make educated investment decisions based on all available information about each project.
We have also created an efficient investment product called a Borrower Dependent Note which allows us to pool investors’ capital together while keeping the transaction straight-forward for both redeveloper and investor.
Crowdfinancing is when capital from several un-associated individuals is pooled together to invest in a common business venture. This practice has been around for some time in real estate and historically has been known as 'syndicating'. The JOBS Act changed things by allowing real estate operators to 'generally solicit' or 'advertise' the fact they are raising capital for their projects. This is good news for you because prior to the JOBS act, you would have had to personally know a real estate re-developer in order to gain access to their project flow. If you haven't heard of crowdfinancing before, don't feel bad, it's a relatively new way to invest.
We earn our revenue from three primary sources. First, we charge an origination fee (points) for each loan that is funded on our platform. This is charged to the redeveloper and is collected when a loan closes. This fee is fully disclosed on each note and is typically between 1.5 and 3.5 percentage points of the total amount borrowed.
The second source of revenue is from an interest rate spread. This is the difference between the interest rate we charge each borrower and the rate we pass through to investors. This amount is fully disclosed in each note and is typically between 1 and 3 percentage points.
Third, we pre-fund each loan meaning we use our balance sheet to originate each loan. This means we’re earning the full coupon of the underlying mortgage until it is fully syndicated to investors.