Passively Invest in a Diverse Group of Real Estate Projects

Yes. When your investment is approaching its maturity date, you will receive emails giving you the notification to rollover your balance or have the money paid to your bank account. Rolling over your balance into a new RBNF, PFNF, or BDN allows you to instantly invest in another product without waiting for funds to settle.

Like any investment, there are risks involved with investing in real estate debt. There are also mitigating factors to help cushion those debts. For example, the market value of the property could drop significantly, reducing opportunity for the developer to make a profit. However, the property is most likely located in a stable market and was purchased at a discount providing downside protection in a falling-price environment. In some cases, the developer may be unable to finish the property in the allotted term length. For this situation, Fund That Flip builds in an optional 3-month extension, approved only if the project is advancing at a satisfactory pace. The extension corresponds with an additional fee to be shared on a pro-rata basis with investors. Prior to investing, you should fully diligence each deal, as well as consult your investment, tax and legal advisors prior to investing. Additional risks for each deal will be outlined with the Offering Materials.

Passive real estate investing is what our lenders do: They invest money into an asset with the expectation of generating income. It’s the traditional definition of an investment. The lender’s time is not required to manage or operate that real estate asset. The asset (like a distressed home) is backed by a note and a first-position lien. On the flip side, active real estate investing, or what our borrowers do, means investing both equity and time into an asset to generate income, such as being a landlord or rehabbing a home. Active real estate investors are responsible for any of the following: Sourcing properties for acquisition, getting financing, overseeing construction and contractor teams, and/or managing tenants.

Accredited investors must meet this criteria: A net worth of at least $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person's primary residence), or Earned an income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year, or A Series 7, 65, or 82 license in good standing.

When you invest in a project on Fund That Flip you are investing in a borrower Dependent Note (BDN) or a series of notes. The performance correlates directly with the performance of a note that Fund That Flip invests in with the redeveloper of the project or series of projects you've chosen. The underlying note is typically a first-position mortgage or similar security. While the note that you purchase is unsecured, the terms of your note gives you rights to the proceeds generated from the underlying note that is securing the real estate.

All notes have a fixed interest rate and fixed maturity date, so you have greater certainty of repayment when the project(s) is (are) complete.

None. Signing up, browsing projects, and reviewing all other site content is 100% free. While there are no out-of-pocket fees for investors, we do collect a spread on each loan. The interest rate you see for each project is the annual interest rate you collect. We are likely charging the redeveloper 1-2% points more than that in order to service the loan. Our spread is disclosed for each note or series we offer.

Each debt offering is secured by a first position lien on the underlying property (the collateral). The reason that BDNs are not technically secured is that the collateral is not pledged directly to the holder of the BDN but, rather, is pledged to the Indenture Trustee under which the investor benefit as BDN holders.

Delaware Trust is the company serving as the Indenture Trustee. A key role of the Indenture Trustee in addition to administrative responsibilities is to protect the interests of investors in the BDNs. Delaware Trust and FTF Lending, LLC entered into an Indenture which is a contract between a debt issuer and a trustee that dictates the responsibilities of each party. In the case of an event of default by FTF Lending, LLC under the Indenture, the Indenture Trustee will exercise its rights for the benefit of the holders of the BDNs.

Under Rule 506(c) of Regulation D, the Securities and Exchange Commission now requires companies to take reasonable steps to verify their investors are accredited. We've partnered with a reputable third party to help verify your status through a non-intrusive verification process.