Status: Repaid

Annual Return Term Remaining
9% - mo.
Loan to ARV
42.4%
Investment Offering
$70,000
Min. Investment
$5,000
Term
6 mo.
Underlying Asset
Single Family
Guarantee
Personal Guarantee
Underlying Security
1st Position

Investment Summary


Type Cash Out Refinance
Underlying Asset Single Family
Underlying Security 1st Position
Guarantee Personal Guarantee

Fund That Flip closed the loan on this property on November 16, 2018. Your investment will begin accruing interest on the day it clears escrow.

Fund That Flip has provided a first distribution of $65,558 to the developer at closing for a loan to purchase of 39.7%. Fund That Flip is holding back $2,042 for 3 months of pre-paid interest.

There will be no construction done on the property.

Over the course of the project, the developer will contribute an estimated $103,884 in equity, including an estimated $99,442 at the time of closing. The total loan-to-ARV is 42.4%. There is a 3 month pre-payment penalty, meaning investors will earn interest through February 16, 2019, even if paid back earlier. The term of the underlying loan is 6 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 $165,000 $65,558 93.7%
Expected Rehab Budget $1 $0 0.0%
Prepaid Interest Amount $2,042 $2,042 2.9%
Closing Fees $2,400 $2,400 3.4%
Total $169,443 $70,000 100.0%

Loan to Cost


  Cost Amount Disbursed Borrower Contribution Loan to Cost
Purchase Price $165,000 $65,558 $99,442 39.7%
Expected Rehab Budget $1 $0 $1 0.0%
Prepaid Interest Amount $2,042 $0 $2,042 0.0%
Closing Fees $2,400 $2,400 $2,400 100.0%
Total $169,443 $67,958 $103,884 40.1%

Valuation


Valuation Method Estimated Value Amount Distributed LTV
Purchase Price $165,000 $65,558 39.7%
Appraised ARV: $190,000 $70,000 36.8%
FTF Valuation: $165,000 $70,000 42.4%

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

The internal valuation of $165,000 on the property is supported by the following data points:
• 5 comparable properties have recently sold between $179,000 and $219,000.
• Price per square foot of these comparable properties ranges from $139 to $173.
• Our internal valuation yielded a price per square foot of $141.

Fund That Flip supplemented our internal valuation with an appraisal. The appraisal indicated an ARV of $190,000 for the property. We believe a more accurate portrayal of the subject property to be our internal analysis and valuation.

In review of the appraisal, Fund That Flip noted the following items:
• After reviewing the current condition of the property, we concluded the comps used in our internal valuation are a more representative portrayal of the subject property's as-is condition.

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

About the Property


Details

Bedrooms 4
Full Bathrooms 2
Year Built 1900
Square Footage 1171 SF
Garage Spaces 2
Purchase Price $165,000
Estimated Rehab Budget $1
ARV $165,000
Developer Equity $103,884 plus closing & holding costs

Market Overview


• Chicago is a city in Cook County, IL

The subject property is:
    • 7 miles to Downtown Chicago
    • Less than 1 mile to the nearest CTA train station
    • 5 miles to Chicago Midway International Airport

• Retail Sales Sold: 72%
• Short Sales Sold: 8%
• REO Sold: 20%

  • data acquired from internal sources.

Project Strategy


The developer previously purchased this property. They obtained financing from Fund That Flip on November 16, 2018. Your investment will begin accruing interest the day it clears escrow.

This property is a cash flowing rental. There will be no construction done on the property.

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 42.4%.
• 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 6 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.