Status: Repaid

Annual Return Term Remaining
9% -
Loan to ARV
Investment Offering
Min. Investment
9 mo.
Underlying Asset
Single Family
Personal Guarantee
Underlying Security
1st Position

This deal does not have an active offering

Chicago, IL Refinance


  • 09/19/18

    Fund That Flip is pleased to inform you that the loan has been paid off. The payoff date is 9/13/2018.

    You will receive the following payments related to this payoff: September 2018 Partial Normal Interest and Principal.

    You can expect to see these funds deposited in your bank account within 3-5 business. In addition, these payments will be view-able from your investor dashboard.

  • 05/22/18

    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.

Investment Summary

Type No Rehab/No Construction
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee

Fund That Flip closed the loan on this property on May 18, 2018. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $37,158 to the developer at closing for a loan to purchase of 70.1%. Fund That Flip is holding back $2,540 for 3 months of pre-paid interest.

The construction budget is $45,000. Fund That Flip will finance $35,402 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. This project's rehab portion has been completed and verified through inspection. Fund That Flip expects to make one construction draw, but may schedule additional inspections as needed.

Over the course of the project, the developer will contribute an estimated $32,880 in equity, including an estimated $15,842 at the time of closing. The total loan-to-ARV is 57.1%. There is a 3 month pre-payment penalty, meaning investors will earn interest through August 18, 2018, even if paid back earlier. The term of the underlying loan is 9 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
At close $53,000 $37,158 46.4%
Purch. $53,000 $37,158 46.4%
Construction Draw at Close $0 $0 0.0%
Remaining Construction/Rehab $45,000 $35,402 44.3%
Prepaid Int $2,540 $2,540 3.2%
Closing $4,900 $4,900 6.1%
Total $105,440 $80,000 100.0%

Loan to Cost

  Cost Amount Disbursed Borrower Contribution Loan to Cost
At close $53,000 $37,158 $15,842 70.1%
Purch. $53,000 $37,158 $15,842 70.1%
Construction Draw at Close $0 $0 $0
Remaining Construction/Rehab $45,000 $35,402 $9,598 78.7%
Prepaid Int $2,540 $0 $2,540 0.0%
Closing $4,900 $4,900 $4,900 100.0%
Total $105,440 $77,460 $32,880 73.5%


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $53,000 $37,158 70.1%
Appraised ARV: $147,000 $80,000 54.4%
FTF Valuation: $140,000 $80,000 57.1%

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

The internal valuation of $140,000 on the property is supported by the following data points:
• 4 comparable properties have recently sold between $128,000 and $168,500.
• Price per square foot of these comparable properties ranges from $126 to $156.
• Our internal valuation yielded a price per square foot of $84.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $147,000 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


Bedrooms 4
Full Bathrooms 1
Year Built 1926
Square Footage 1664 SF
Garage Spaces 1
Purchase Price $53,000
Estimated Rehab Budget $45,000
ARV $140,000
Current Appraised Value $147,000
Developer Equity $32,880 plus closing & holding costs

Market Overview

Chicago has the third largest gross metropolitan product in the United States; approximately $571 billion according to 2012 estimates. Chicago was named the fourth most important business center in the world in the MasterCard Worldwide Centers of Commerce Index. Additionally, the Chicago metropolitan area recorded the greatest number of new or expanded corporate facilities in the United States for six out of the seven years from 2001 to 2008. The Chicago metropolitan area has the third largest science and engineering workforce of any metropolitan area in the nation. In 2012, Chicago placed 20th on the UBS list of the world's richest cities. The city and its surrounding metropolitan area are home to the third largest labor pool in the United States with approximately 4.25 million workers.

Chicago is a major world financial center, with the second largest central business district in the U.S. The city is the headquarters of the Federal Reserve Bank of Chicago (the Seventh District of the Federal Reserve). The city is also home to major financial and futures exchanges, including the Chicago Stock Exchange, the Chicago Board Options Exchange (CBOE), and the Chicago Mercantile Exchange (the "Merc"), which is owned, along with the Chicago Board of Trade (CBOT) by Chicago's CME Group. The CME Group, in addition, owns the New York Mercantile Exchange (NYMEX), the Commodities Exchange Inc. (COMEX) and the Dow Jones Indexes.

The subject property is located:
    • 10.5 miles from Downtown Chicago, a 36-minute drive
    • 4.4 miles to Chicago Midway International Airport, a 16-mintue drive
    • # miles to Chicago, IL

• Retail Sales Sold: 66%
• Short Sales Sold: 2%
• REO Sold: 32%

  • data acquired from internal sources.

Project Strategy

The developer previously purchased this property and refinanced with financing from Fund That Flip on May 18, 2018. The rehab portion of this project has been completed and verified through third party inspection services. Your investment will begin accruing interest the day it clears escrow.


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.

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.

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 57.1%.
• Fund That Flip holds a first position lien on the property and the partner has personally guaranteed the loan.

The developer is unable to complete the project in the allotted 9 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.