Eating your own dog food, or “dogfooding,” is a term used in business in reference to a company’s willingness to use its own products in a meaningful way. As part of Fund That Flip's commitment to transparency, I'm sharing my loan portfolio each month so you can see firsthand the “dog food” that I’m eating. To learn more about dogfooding and this series, check out this post.
In October, I made 12 investments for $43,000 and had 14 partial principal repayment totaling $9,923. This resulted in a net increase of $33,077 invested on the platform.
This was an interesting month, in that all of my principal repayments were partial. This generally happens when you invest in an offering that is secured by multiple properties and they sell/refinance at different times. When this happens, principal is returned on a pro-rata basis, based on the underlying individual property's pro-rata share of the overall offering. In certain instances, the underlying loan will have an accelerated paydown schedule. This means that the first principal payment(s) are a higher percentage of the overall loan to offer additional loan-to-value protections on the remaining properties.
In previous updates, I had mentioned that I had reached my desired allocation for this asset class. This was partially due to our plans to purchase a new primary residence and making sure I had the liquidity to do so. We weren't finding anything we liked so I decided to put some of the extra cash to work. As luck would have it, we found a property we liked at the end of the month and have an accepted offer! That said, it is a "fixer-upper" (it's only appropriate), so as I receive payoffs in the coming months, I will likely be going into more cash to support the investment in our primary residence.
This is one of the things I really love about this asset class. Because I've spaced my maturity dates out over different months, I have some expected liquidity coming nearly every month. This allows me to re-evaluate reinvesting or pulling some capital off the table to deploy elsewhere.
As always, below is a snapshot of my investments as of the end of October 2020. I want to stress that I am not an investment advisor, nor should you take this information as investment advice. What’s good for my portfolio and risk tolerance may not be right for you.
Fund That Flip, Inc. does not make investment recommendations, and any information found herein should not be construed as such. Information found on this website is not an offer to sell or the solicitation of an offer to buy any security, which can only be made through official offering documents that contain important information about risks, fees and expenses. Any investment information contained herein has been secured from sources Fund That Flip, Inc. believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor. We recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. Fund That Flip, Inc. is able to make investment opportunities available, only to accredited investors who submit required verification.