Fund that Flip

25 Replies

Has anyone ever dealt with "Fund that Flip" and care to leave any feedback?

@Matt Rodak runs the site and I have met him a few times and had a number of discussions with him (more from the investor side not from the flipper side). I have always found him forth coming and helpful though I can't say much beyond that. I would encourage you to talk to him and I am sure he would answer any questions you have. 

I'm pretty sure @jscott is on their board.  They also just got hooked up with houses flipping spreadsheets.com, the owner of which is also here on BP.

They seem to be pretty well connected with BP I'm sure some here has done a deal with them.

Sam Erickson, Real Estate Agent in WI (#57119-90)

Disclosure: Client of FTF

@Matthew Rembish , I had an awesome experience with Matt and FundThatFlip that I would be glad to share with you. I will be posting our flip success story in the next week or so on a very profitable flip.

@Sam Erickson

Thank you Sam, that's actually where I heard of them but I didn't know J was involved.

Thanks!

@Matt Rodak

Matt, that would be great. I am definitely interested in learning more, I will PM you.

@Jonathan Makovsky

Jonathan, 

That is great to hear about your success! That's too funny that you responded to this because I just listened to your podcast 2 days ago. Looking forward to reading your story.

@Jonathan Makovsky

Would you possibly have some time to talk on the phone maybe sometime soon, not just about FTF but about starting off in general. I found your story very inspiring.

@Charles Worth

That's great, thanks for the feedback Charles

I  just heard of FTF today and  knew I could come here for some reviews!! That's why I love BP!! All the answers that I could ever need and more!!  I am very interested in using their service. The one thing that I do have a question about is how willing are they to work with new investors. I  really have been doing my homework and my business partner and myself have a great business plan in place. The one part we are having issues  with is the funding of the deals. We have some capital to work with, but would really be interested in finding out if this is a great way to go. 

Originally posted by @Matt Rodak :

Hi Bryan,

Thanks for your interest. Fellow BP member and podcaster @Jonathan Makovsky just completed a deal with us and we shot this video about the experience. 

https://www.youtube.com/watch?v=-canvfCLXoA

Happy to jump on a call with you too if any other questions you might have. 

 Hey Matt,

Can we connect some how? I have a deal closing at the end of the month and wanted to see if Fund That Flip would work for me..

Thank you

Ben Haberman

There are handful of crowdfunding lending companies emerged lately.

They all seem to share a need to be an accredited investor to start investing.

In order for an individual to qualify as an accredited investor, he or she must accomplish at least one of the following:

1) earn an individual income of more than $200,000 per year, or a joint income of $300,000, in each of the last two years and expect to reasonably maintain the same level of income.

2) have a net worth exceeding $1 million, either individually or jointly with his or her spouse.

3) be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.

How strict is the accreditation requirement is being followed?

Is there any legal way to invest in this concept without being accredited as an investor per SEC rules?

I am not qualifying under those requirements, but still willing to invest about $50K…

Originally posted by @Alexander Kleiman :

There are handful of crowdfunding lending companies emerged lately.

They all seem to share a need to be an accredited investor to start investing.

In order for an individual to qualify as an accredited investor, he or she must accomplish at least one of the following:

1) earn an individual income of more than $200,000 per year, or a joint income of $300,000, in each of the last two years and expect to reasonably maintain the same level of income.

2) have a net worth exceeding $1 million, either individually or jointly with his or her spouse.

3) be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.

How strict is the accreditation requirement is being followed?

Is there any legal way to invest in this concept without being accredited as an investor per SEC rules?

I am not qualifying under those requirements, but still willing to invest about $50K…

 How strict is it being followed? It depends on the safe harbor rule that the platform is using.  If they are using 506b, they can rely upon a representation from you that you are accredited.  In other words, you can lie about your status and get in.

Is it "legal"?  Well, no.  

In my view, the rules keep you from investing a sizable portion of your net worth on a lightly regulated investment marketplace.  As a rule of thumb, you probably shouldn't be investing more than 10-20% of your net worth in these deals anyway.    

I'm interested in hearing feedbacks on the lending side. Anyone?

I appreciate it.

Paula

@Matt Rodak , I'd also love to hear from some active investors on FTF.  I'm thinking of investing and want to hear how it's been going for people.  Thanks,

-joe

I have put some money into fund that flip within the last couple of months.  I was also looking for someone who has completed an investment with them. 

Originally posted by @Alexander Kleiman :

There are handful of crowdfunding lending companies emerged lately.

They all seem to share a need to be an accredited investor to start investing.

In order for an individual to qualify as an accredited investor, he or she must accomplish at least one of the following:

1) earn an individual income of more than $200,000 per year, or a joint income of $300,000, in each of the last two years and expect to reasonably maintain the same level of income.

2) have a net worth exceeding $1 million, either individually or jointly with his or her spouse.

3) be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.

How strict is the accreditation requirement is being followed?

Is there any legal way to invest in this concept without being accredited as an investor per SEC rules?

I am not qualifying under those requirements, but still willing to invest about $50K…

 I was wondering this as well.  I'm just short of the income qualification but would still have to wait two years for that to season.  I'd consider myself in line with an "Accredited investors" since I work in the regulatory finance industry, and have worked at a security regulatory authority empowered by the SEC.  There should be an exception to this rule based on competence/education/work experience, but I guess that's hard to prove.

@Matthew Rembish

I am on my 6th deal with them.

 I was pleasantly surprised. Consistent updates. Deals performed without issue. 

I think they are bigger than I had in initially assumed. Maybe in the 40+ staff range Im guessing.

The interest rates on the debt deals I have done have been higher than most of their peers. I suspect this is due to either a better sales group, or the risk was simply adjust higher on the ones I went in. 

I have 37 investments with Fund That Flip. I have spoken with both Matt and Stephen who are co-founders and they have been responsive to my questions. They seem like ambitious guys in their 30's and 40's who have flipped houses themselves and have worked in the finance market before starting FTF. They started out with about 10 people. Now they have about 20 people working for them. They are increasing that number to 30 next year. They are based in New York City and Ohio. According to them, they have raised money for their company and have access to 50 millions to use to fund loans. They fund all their loans first before crowd funding.

My apprehension with investing in crowd funded flipping platform is that A LOT of them have gone under. Therefore research is crucial to understand the risks. https://www.therealestatecrowdfundingreview.com/to....

One of the concept that was important for me to learn was DEBT VS EQUITY financing. Debt is much better since in an EQUITY financing if a company goes under investors will get crumbs after the company gets bailed out first. FTF is a DEBT financing platform. All of  their loans are first position mortgages with personal guarantee meaning if foreclosure does not meet the debt requirement, FTF can go after the borrower's personal assets.

Every loan has an appraisal report which I browse especially to eliminate properties on the flood planes. I have not found one yet. House needing flood insurance are hard to sell. Having access to the MLS, I have done comps on houses that are on the platform from CT and the appraisals are pretty close. FTF also cross checks the appraisals. You will notice that they only fund less than 70% of ARV and the borrowers have skin in the game.

I have asked the pressing question. Have you had to foreclose on any property and has the investor lost any money? Technically no on foreclosure, but one borrower handed over the property via deed in lieu. No loss on any investments. 

I also like Peer Street which is rated well. I chose to invest in both but prefer FTF for the higher interest rates. I like it that FTF know their flippers since they screened them and follow them.

A flipper I know told me that FTF appraiser literally showed up the next day after the application was approved. He was happy that everything happened quickly and efficiently. 

I’m seeing this discussion 2 years late, but still found it very helpful. Thank you all for the insight!