Have questions about investing in real estate?
Browse our commonly asked questions and learn why real estate investors choose Fund That Flip as their primary platform.
Have general questions about Fund That Flip?
Find answers below or check out our blog to learn more about what's new in our business.
What exactly is Fund That Flip?
Fund That Flip is an online investment platform for residential real estate redevelopment projects. Thousands of distressed homes hit the market every day. Many of these homes are not suitable for home buyers or tenants to live in. Our network of redevelopers purchases and rehabilitates these homes, improving neighborhoods and creating value for local communities.
Traditional financing for these projects isn't always available. We source, underwrite and originate projects from experienced developers. After perfecting the loan, we offer accredited investors the opportunity to invest in BDNs related to each project. This allows you to invest as little as $5,000 per project to achieve diversity while helping restore neighborhoods around the country.
What role does Fund That Flip serve?
Fund That Flip is primarily a technology platform that facilitates the financing of residential redevelopment projects. We provide basic screening and due diligence of each redeveloper and their projects before they are made available on our platform to accredited investors. We raise the level of transparency and ease-of-use so investors can make educated investment decisions based on all available information about each project.
We have also created an efficient investment product called a Borrower Dependent Note which allows us to pool investors’ capital together while keeping the transaction straight-forward for both redeveloper and investor.
What is Crowdfinancing?
Crowdfinancing is when capital from several un-associated individuals is pooled together to invest in a common business venture. This practice has been around for some time in real estate and historically has been known as 'syndicating'. The JOBS Act changed things by allowing real estate operators to 'generally solicit' or 'advertise' the fact they are raising capital for their projects. This is good news for you because prior to the JOBS act, you would have had to personally know a real estate re-developer in order to gain access to their project flow. If you haven't heard of crowdfinancing before, don't feel bad, it's a relatively new way to invest.
How does Fund That Flip earn revenue?
We earn our revenue from three primary sources. First, we charge an origination fee (points) for each loan that is funded on our platform. This is charged to the redeveloper and is collected when a loan closes. This fee is fully disclosed on each note and is typically between 1.5 and 3.5 percentage points of the total amount borrowed.
The second source of revenue is from an interest rate spread. This is the difference between the interest rate we charge each borrower and the rate we pass through to investors. This amount is fully disclosed in each note and is typically between 1 and 3 percentage points.
Third, we pre-fund each loan meaning we use our balance sheet to originate each loan. This means we’re earning the full coupon of the underlying mortgage until it is fully syndicated to investors.
What kind of leverage do I get?
Up to <X> LTC and <X> ARV. More leverage allows you to do more deals and grow your business faster. Our broad sources of capital and discretionary underwriting allows us to get you the leverage you need to grow your business.
Learn more about the Fund That Flip team
Used them to fund a large renovation. Love their technology, which makes sign up and underwriting smooth. Very friendly and responsive crew. Definitely worth working with them.
— Andy M.
Fund That Flip is an excellent operation with "A" players. You can rely on them if you need lending on anything from a multi-million dollar project to a single-family deal.
— Paul V.
The Fund That Flip team far exceeds all expectations. We couldn't have asked for a better group to be teamed with!
— Chris N.
No one in this country can close a legitimate loan over $1M in less than 2 weeks, except Fund That Flip.
— Brad C.
The flexibility within your company and your masterminding on deals to make them work helps you guys stand apart from the rest.
— Jesse W.
Every representative I worked with was very personable and willing to help. Fund That Flip's process is very simple with hardly any red tape. I highly recommend using this company for financing.
— Theresa L.