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Investor Insights - Episode 10 - Case Study: Non-Performing Loan

A behind-the-scenes look at investing with Fund That Flip

Welcome to Investor Insights! In this ongoing series, we provide a behind-the-scenes look into how the business works, from underwriting and risk mitigation, to monthly loan performance, and beyond. You will hear from leaders within the organization who are driving day-to-day operations. We also answer your Frequently Asked Questions about investing with Fund That Flip, so that you can make better investment decisions with your hard-earned capital.

In this episode, we focus on a case study of a loan that went into default and through the foreclosure process. After we took the title back through credit bid, Fund That Flip worked directly with the subcontractors to complete the project. Ultimately, we were able to liquidate the property by selling to an end buyer while preserving 95.5% of principal, resulting in 1-2% cash on cash return for investors in this deal. 

Learn why we decided to complete this project rather than sell it during foreclosure, our strategy behind paying taxes on this property, how we think about balancing speed to liquidity and preservation of principal, and more. Because we believe accountability is the best fertilizer for growth, we are committed to keeping our investors informed on our strategy for non-performing loans. As always, if you have any questions, comments, or feedback, please email us at investorrelations@fundthatflip.com.

 

 
Curious where to find our performance report and statistics on our loan application volume? We post it monthly on the blog here. Happy investing!

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