Previous articles of A Guide to Investing with Fund That Flip taught 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 explain how to analyze the performance of the investments that you make with Fund That Flip.
As an investor, you likely know it's important to keep track of all your investments so that you can record and analyze the status of your finances. Fund That Flip has worked hard to ensure that investors can do this easily on our platform.
To view how much you have earned, go to the top right corner of the “My Investments” tab of your dashboard. Here it shows your total amount earned on investments and your current month’s earnings. On the “My Investments” page of your dashboard, you will see a list of your active investments. Next to the dollar amount of your investments is the status of your investment. Your investment can either be invested, received, not received, or halted.
If your investment says "Invested," this means that we have received your funds and and they are invested into the deal. "Received" means that we have received your funds and you have an accrual date, but something is preventing us from investing it. Usually this is because of the need to verify your accreditation or lack of a subscription agreement. The investor relations team will reach out for the information we require to move this investment into an invested status.
If your investment says "Not received," this means that your investment is reserved, but we have not received the fund yet. If you invest by ACH, we will automatically pull your funds and your status will change once it is received. If you invested by wire, you will need to send it using the wire instructions emailed to you. Lastly, "Halted" means that either an unverified investing entity or an unverified bank account is preventing us from initiating the investment process. Halted investments do reserve investors’ spots. 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 can keep an eye on the deal for regular updates. Deal updates are posted by our borrower success team to the deals to keep investors apprised of the status of the projects. You can find them by going to the deal page and looking under the photos of the project.
As you watch for updates, keep in mind that it is common for loans to be extended past their initial maturity. For the most part, these extensions are for 3 months, but can increase in length depending on a multitude of factors. The main reasons for extensions are extending to complete the rehab, extending to finalize a sale, or extending to bring a refinance to close. Fund That Flip’s 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 borrower success and asset management teams closely monitor the performance of every loan. There are a few different flags of a deal that 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 avenues that these loans can go down, and unfortunately, some of them do lead to foreclosure (though this is rare - see our latest Performance Reports for more information). That is the last option as it is not beneficial to any parties involved, but in the next section, you will see some of the different tools we use in order to maximize return.
Fund That Flip also offers investors the opportunity to view other interesting 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 excel for better data manipulation. Additionally, if you scroll towards 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 funded 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 those listed payment methods to invest in any other available deals on the platform. On that note, you can check out open deals for investment by clicking here!
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