Status: Repaid

Annual Return Term Remaining
9.5% -
Loan to ARV
64.1%
Investment Offering
$2,950,000
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 inform you that the loan has been paid off. The payoff date is 02/25/2020.

You will receive the following payments related to this payoff: February 2020 Partial Normal Interest, 1 Extension 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.

The updated maturity date for this loan is 6/29/2020.

The developer has requested a loan extension to finalize the refinance and payoff of the project.

This borrower had the option to extend this again, and FTF granted this so it would bring the loan within maturity. We are still confident this loan will payoff by the end of this month.

The maturity date will be extended an additional six months.

Investors will receive their share of collected extension fees at time of payoff.

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

The developer has sent over commitment letters from the new lender for the refinance.

They are planning to close by the third week in February.

Investors will continue to be updated as further developments occur.

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

The developer has represented that the refinance closing date has been pushed to the middle of next month.

Investors will continue to be updated as further developments occur.

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

The developer has represented that they are working towards a refinance in early 2020.

Depending on the timing, the developer may request to use their second extension.

Investors will continue to be updated as further developments occur.

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

The project is 100% complete.

Fund That Flip has processed the final 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 91% 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 74% 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 58% 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 49% 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 41% 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 30% 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 19% 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.

The developer has requested to execute their first six-month extension to finalize the completion of the rehab on the project.

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

The maturity date will be extended an additional six months with an updated maturity of 12/29/2019.

The developer will also have an option to extend for an additional six months and if elected, Fund That Flip will collect a fee for disbursement to investors at payoff.

Investors will receive their share of any collected extension fees at time of payoff.

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

Based on the Inspection Report this project is at 8% 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

Fund That Flip closed the loan on this property on June 29, 2018. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $423,447 to the developer at closing for a loan to purchase of 50.7%. Fund That Flip is holding back $326,303 for 12 months of pre-paid interest.

The construction budget is $2,384,672. Fund That Flip will finance $2,124,500 of the total construction budget. Fund That Flip disburses constructions 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 5 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 $1,073,778 in equity, including an estimated $411,553 at the time of closing. The total loan-to-ARV is 64.1%. There is a 3 month pre-payment penalty, meaning investors will earn interest through September 29, 2018, even if paid back earlier. The term of the underlying loan is 12 months with an option to extend for two periods of an additional 6 months each. Should Fund That Flip choose to grant the second 6-month extension, investors will earn an additional one-time 0.5% fee on their pro rata investment.

Use of Proceeds


  Cost Use of Proceeds % of Loan
Purchase Price $835,000 $423,447 14.4%
Expected Rehab Budget $2,177,818 $2,124,500 72.0%
Prepaid Interest Amount $326,303 $326,303 11.1%
Closing Fees $75,750 $75,750 2.6%
Total $3,414,871 $2,950,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
Purchase Price $835,000 $423,447 $411,553 50.7%
Expected Rehab Budget $2,177,818 $2,124,500 $53,318 97.6%
Prepaid Interest Amount $326,303 $0 $326,303 0.0%
Closing Fees $75,750 $75,750 $75,750 100.0%
Total $3,414,871 $2,623,697 $866,924 76.8%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $835,000 $423,447 50.7%
Appraised ARV: $4,300,000 $2,950,000 68.6%
FTF Valuation: $4,600,000 $2,950,000 64.1%

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

The internal valuation of $4,600,000 on the property is supported by the following data points:
• 3 comparable properties have recently sold between $4,225,000 and $5,050,000.
• Price per square foot of these comparable properties ranges from $928 to $1,133.
• Our internal valuation yielded a price per square foot of $985.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $4,300,000 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 4669 SF
Garage Spaces 2
Purchase Price $835,000
Estimated Rehab Budget $2,177,818
ARV $4,600,000
Developer Equity $866,924 plus closing & holding costs

Market Overview


• Sag Harbor is an incorporated village in Suffolk County, New York. Most of the defining landmarks of the village — including its Main Street, the Whalers Church, Jermain Library, Whaling Museum, the Old Burying Ground, Oakland Cemetery, Mashashimuet Park, and Otter Pond are in Southampton. However, almost all the Bay Street marina complex, including Sag Harbor Yacht Club and Breakwater Yacht Club, at the foot of Main Street, is in East Hampton, as is the village's high school, the Sag Harbor State Golf Course, and the freed slave community of Eastville.

The subject property is located:
    • 4.6 miles from the Sag Harbor Yacht Club, approx. a 12-minute drive
    • 5.9 miles to Sag Harbor Golf Course, approx. a 15-minute drive

• Retail Sales Sold: 81%
• Short Sales Sold: 0%
• REO Sold: 19%
• 125 Average Retail DOM in the past 3 months

  • data acquired from internal sources.

Project Strategy


The developer bought this land with financing from Fund That Flip on June 29, 2018. Your investment will begin accruing interest the day it clears escrow.

Construction will begin shortly after loan closing and includes the following:
• Plans, Permits, & Survey
• Water/Sewer Prep
• Landscaping and Irrigation
• Foundation
• Framing
• Decking
• Windows
• Plumbing
• Electrical
• Interior & Exterior Paint

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 64.1%.
• 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.