This article provides Fund That Flip review and hard money loan information. Fund That Flip is an online crowdfunding real estate platform specifically targeted for residential fix-and-flip properties.
Apart from helping builders fund yet-to-be-constructed projects, Fund That Flip also aims to address the growing challenge of fixing thousands of homes listed in the market that are not yet suitable to accommodate tenants or occupants. The platform helps borrowers by funding their real estate projects through its network of re-developers and investors.
How It Works
Interested borrowers need to visit the Fund That Flip website and follow these steps to get funding from the platform:
- Fill up the online application form which can give an indication whether or not Fund That Flip can help fund the project. The needed information includes:
- Project location
- Project financial details such as purchase price, rehab budget, after repair value and when an applicant needs the funding
- Past project samples
- Company information
- Also prepare
- If the site indicates that a project is eligible for funding, an underwriting team representative will reach out to learn more about the project
- After which, a Term Sheet outlining all the terms and pricing will be sent to the borrower for signature. Apart from the Term Sheet, the borrower must be able to provide the following requirements for due diligence:
- Purchase contract
- Sample of past projects
- Statement of work
- Financial supporting documents
- Guarantor documents
- After all the documents are completed, Fund That Flip can provide the needed funding in as fast as 7 days.
Fund That Flip Funding Information
|Loan amount||$100,000 - $1,000,000|
|Required down payment||20% of purchase price|
|Construction loans||Up to 100%|
|Security||1st lien position + personal guarantee|
|Time to close||7-10 business days|
|Lending area||United States *with some exceptions|
|Term length||3-18 months|
|Occupancy||Property must be unoccupied|
Fund That Flip funding and pricing depends on the estimated value of the project a borrower applied for to be funded. The chart above shows the amount of the funding value as well as terms and costs for each.
Funding from Fund That Flip varies from $100,000 to $1,000,000 depending on each project with loan interest rates from 9-14% of the approved funding value and with term length of 3-18 months. Borrower needs to have a first lien position and can provide personal guarantee documents to be approved.
Funding covers most parts of the United States with some exceptions – although information on this is not provided in the website and can be inquired upon after signing the online application.
Individuals can sign up for free on the site. While the amount varies on a case to case basis, the website indicates that they will charge an origination fee of around 2-4% of the total amount of each loan funded on the platform that can be released for as little as 7-10 days. The amount for this can vary and will be outlined in the project’s Term Sheet upon approval of funding.