Fund That Flip

About Fund That Flip

Fund That Flip is private lender headquartered in New York, NY. They offer funding across the country. They offer fix-and-flip hard money loans, ground-up construction loans, and long term rental property loans. Their loan guidelines are flexible, including loan amounts ranging from $100,000 to $1,000,000 with a maximum LTV of 80%, terms between 3 months and 18 months, and rates ranging between 9% and 14%. The focus of their lending is for single family units and multi family residences.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, New Construction Loans

Property Types Covered: Single Family, Multi Family

Areas Served: National

Lending Guidelines for Fund That Flip

Below are the general loan guidelines published on the Fund That Flip website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Fund That Flip.

Loan Example 1

Joni closes on a $170,000 renovation project in Austin, TX, using a fix and flip loan from Fund That Flip. Since the lender sets a 70% loan-to-value, Joni will need to put 30% down so the principle amount of the loan will be $119,000. The interest rate on the loan is 8% for a length of 6 months and the lender requires a five point origination fee at closing. The interest is to be paid on a monthly basis and the principle will be paid back after the sale of the property.

By the parameters of the note, Joni will be required to contribute a $5,950 origination fee plus 30% of the purchase price, or $51,000, based on the 70% LTV. The lender will collect $793 in monthly interest from the Joni. This is computed by taking the full loan amount of $119,000, multiplying by the 8% interest rate, and then dividing that amount by 12. At the end of the loan, she sells the rehabed house for $255,000. After deducting the $4,760 in total interest payments ($793 times 6 months), the $5,950 origination fee, the $119,000 principle on the loan, and the $51,000 she contributed to the closing, she will earn a total profit of $74,290 ($255,000 sales price minus $180,710 in total costs). This profit would be reduced by any building costs paid by Joni.

Loan Example 2

Fund That Flip issues a private money loan to Derek for a remodeling project in Aurora, CO. The loan includes the following:

a) A $210,000 sales price, b) a 50% loan to value (LTV), c) a 12 month term, d) a 13% interest rate, and e) a 1% origination fee.

Assuming a $262,500 sales price after the 12 month term, the outcome for the deal would look like the following:

$262,500 sales price
- $105,000 note principle (50% LTV)
- $105,000 down payment (50% on 50% LTV)
- $1,050 origination fee (1% of the $105,000 principle)
- $13,650 total interest paid (12 months x 13% interest)
-----------------------
= $37,800 total profit (does not include taxes or renovation costs)

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