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What Does "Pre-Funded" Mean For Your Real Estate Investment?

How Pre-Funding Helps Improve Investor Yield

pre-funded rehab loans

Fund That Flip "pre-funds" each rehab loan that is available for investment. This means that the loan has already been fully funded with a first-position mortgage by the time you see it online.

Why We Do This

Pre-funding allows us to provide certainty to borrowers that their project will be funded, which is very important to them. It also provides certain benefits for you as a lender.

  1. Reliability
    It demonstrates to you that we have thoroughly vetted the project, so much so that we’ve put our own capital into the project.

  2. Optimization
    It allows you to start earning interest as soon as your funds clear escrow. This improves your annual yield as you won’t have capital sitting in an account earning nothing while the deal waits to close.

  3. Speed
    The project is already underway by the time you invest. The mortgage has been perfected, title insurance is in place, and interest is accruing. You can sit back and wait for your first interest payment without any additional action required.

Get Funded 

 

Common Questions about Pre-Funding

Q: If the deal is already funded, why does the site say it is only X% funded?
A: This is the percent that other lenders, like you, have funded. The remaining percentage is how much is left before the entire loan is funded by lenders like you.

Q: What happens if the loan doesn’t 100% fund on the site?
A: Since the loan is already funded by Fund That Flip, any percentage that isn’t funded by lenders is retained by Fund That Flip. We earn interest just like you do.

Q: Are loans ever not pre-funded?
A: Occasionally we’ll list a project that hasn’t been pre-funded in order to give you a chance to start your due diligence ahead of the loan closing. In these cases, we let you know that the loan is taking “pledges” which allows you to hold your spot.

Get Started Investing

Check out all of our pre-funded projects and start earning interest as soon as your funds clear escrow!

 

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