Status: Repaid

Annual Return Term Remaining
9% - mo.
Loan to ARV
65.9%
Investment Offering
$1,450,000
Min. Investment
$5,000
Term
12 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee x3
Underlying Security
1st Position

Updates


Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 11/21/2019.

You will receive the following payments related to this payoff: November 2019 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.

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

Based on the Inspection Report this project is at 95% 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 89% 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 83% 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 82% 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 76% 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 68% 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 64% 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 60% 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 51% 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 40% 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 26% 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 14% completion.

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

Investors will be notified as further developments occur.

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 January 10, 2019. Your investment will begin accruing interest on the day it clears escrow.

The developers previously purchased this property for $625,000 in 2013 with financing from another lender. Since the borrower purchased the property in 2013, the value you are seeing as the purchase price below is the as-is value of the property.

Fund That Flip has provided a first distribution of $409,360 to the developers at closing for a loan to as-is of 56.4%. Fund That Flip is holding back $114,671 for 9 months of prepaid interest.

The construction budget is $998,000. Fund That Flip will finance $890,844 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, as determined by an independent 3rd party 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.

Over the course of the project, the developers will contribute an estimated $573,592 in equity, including an estimated $316,640 at the time of closing. The total loan-to-ARV is 65.9%. There is a 3 month pre-payment penalty, meaning investors will earn interest through April 10, 2019, 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 $726,000 $409,360 28.2%
Expected Rehab Budget $998,000 $890,844 61.4%
Prepaid Interest Amount $114,671 $114,671 7.9%
Closing Fees $35,125 $35,125 2.4%
Total $1,873,796 $1,450,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
Purchase Price $726,000 $409,360 $316,640 56.4%
Expected Rehab Budget $998,000 $890,844 $107,156 89.3%
Prepaid Interest Amount $114,671 $0 $114,671 0.0%
Closing Fees $35,125 $35,125 $35,125 100.0%
Total $1,873,796 $1,335,329 $573,592 71.3%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $726,000 $409,360 56.4%
Appraised ARV: $2,226,000 $1,450,000 65.1%
FTF Valuation: $2,200,000 $1,450,000 65.9%

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

The internal valuation of $2,200,000 on the property is supported by the following data points:
• 6 comparable properties have recently sold between $1,730,000 and $2,975,000.
• Price per square foot of these comparable properties ranges from $323 to $595.
• Our internal valuation yielded a price per square foot of $413.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $2,226,000 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

Bedrooms 5
Full Bathrooms 5
Year Built 2019
Square Footage 5321 SF
Garage Spaces 3
Purchase Price $726,000
Estimated Rehab Budget $998,000
ARV $2,200,000
Current Appraised Value $726,000
Developer Equity $573,592 plus closing & holding costs

Market Overview


• Weston is a town in Middlesex County, MA

The subject property is:
    • 14 miles to Downtown, Boston
    • 1 mile to Brandeis University
    • 2 miles to Lasell College

• Retail Sales Sold: 100%
• Short Sales Sold: 0%
• REO Sold: 0%

  • data acquired from internal sources.

Project Strategy


The developers previously purchased this property for $625,000 in 2013 with financing from another lender. They obtained re-financing from Fund That Flip on January 10, 2019. Your Investment will begin accruing interest the day it clears escrow.

Construction has begun and will continue shortly after loan closing. It includes the following:
• Foundation
• Framing
• Roofing
• Windows
• Cabinets & Countertops
• Appliances
• Plumbing
• Electrical
• Interior Paint
• Siding

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 65.9%.
• 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.