As an accredited investor, you know it's important to keep track of all your investments so you can record and analyze the status of your finances. Fund That Flip is dedicated to creating technology solutions to ensure investors can do this easily on our platform.
Previous articles in the Guide to Investing with Fund That Flip explain the basics of real estate crowdfunding and why Fund That Flip may be the right platform for you to invest with. In this article, we'll show you how to analyze the performance of the investments that you make with Fund That Flip.
First, let’s log in and take a look at your current investments, their status, and how see how much you have earned.
- Go to the top right corner of the “My Investments” tab of your dashboard. Here you can see the total amount earned from your investments and the current month’s earnings.
- On the “My Investments” page of your dashboard, you will see a list of active investments. Next to the dollar amount of the investments is the status of the investment.
- Your investment can either be invested, received, not received, or halted. If your investment says Invested, this means we have received your funds and they’re invested into the deal. Received means we have received your funds and you have an accrual date, but something is preventing us from investing it. This is usually because of the need to verify your accreditation or lack of a subscription agreement. The Fund That Flip Investor Relations team will contact you for the information we require to move this investment into an invested status.
If your investment says Not Received, this means your investment is reserved, but we have not received the fund yet. If you invest by ACH, we’ll automatically pull funds from the bank account you connected, and the status of the investment will change once the funds are received. If you invested by wire, you will need to send the fund using the wire instructions emailed to you.
Lastly, Halted means either an unverified investing entity or an unverified bank account is preventing us from initiating the investment process. Halted investments do reserve the investor’s spot. The Investor Relations team will reach out to collect the required information to verify the entity or bank account.
Once your money has been invested, you will receive regular updates on each deal you have invested in. Status updates are posted to each individual deal by our Sevicing team to keep investors apprised of the status of the projects, and thus, their investments. To find the deal updates, visit the deal page of the deal you have invested in scroll to the information under the project photos. Additionally, each update on a deal is emailed to you.
Loan Extensions & Performance
As you watch for updates, remember it’s common for loans to be extended past their initial maturity. For the most part, these extensions are approved in three-month increments, but can increase in length depending on many factors.
The main reasons a borrower will request a loan extension are needing more time to finalize a sale or bring a refinance to close. Fund That Flip’s Servicing team analyzes all aspects of a loan before granting an extension. Interest must be current, taxes must be paid, and insurance must still be in place. There is a fee associated with every extension, and investors will receive their pro-rata share of those fees to supplement for their principal being tied up longer than initially expected. Learn more about extensions here.
The Servicing and Asset Management teams closely monitor the performance of every loan. There are a few different signs we watch for to signal a loan may not be performing well. The main three are late payments, lack of responsiveness, and slow or little progression of the rehab. As these issues arise, they are escalated quickly so that our team can discover the best path forward. There are many different ways to resolve a poorly performing loan, and unfortunately, some of them do lead to foreclosure (though this is rare — see our monthly Performance Reports for more information). Foreclosure is the last option, because it’s not beneficial to anyone — Fund That Flip, you the investor, or the borrower.
Other Dashboard Information
Fund That Flip also offers investors the opportunity to view other details about their investments, such as how much they have invested in a given borrower or state. You can see a complete list of your active investments on the "My Investments" page of your dashboard.
All of your investment data can be downloaded into an Excel spreadsheet for better data manipulation. Additionally, if you scroll toward the bottom of a given deal page, you can find more information about the borrower for the deal. You can see if the developer is a repeat borrower, as well as their other deals financed with Fund That Flip
Once the loan has matured, your principal will be returned to your Fund That Flip account, at which point you can reinvest. You can use any of the listed payment methods to invest in any other available deals on the platform, such as these currently available investment opportunities.
Fund That Flip investors have historically earned more than 10% annualized yield by passively investing in our deals.