Welcome to Investor Insights! In this series, we provide a behind-the-scenes look into how the business works, from underwriting and risk mitigation, to monthly loan performance, and beyond. You will hear from leaders within the organization who are driving day-to-day operations. We also answer your Frequently Asked Questions about investing with Fund That Flip, so that you can make better investment decisions with your hard-earned capital.
In this episode, we take a deep dive into the state of our portfolio and discuss what causes some of these loans to become troubled. As importantly, we discuss what we do from an asset management perspective to protect investor principal and try to get to liquidity as fast as possible.
While every deal is different, our strategy revolves around three core tenets:
Preserve principal: Everything we’re doing is focused on minimizing expenses and optimizing for returning capital.
Speed to liquidity: Time is money in this business, and a faster resolution for maybe a little less recovery often makes sense, factoring in the valuation and market conditions.
Communicate, communicate, communicate: We try to keep our investors up to speed regularly with what’s happening and what we’re doing.
Listen as we talk through what happens when a loan goes into default, and the ways we work with the borrower to find the best path forward to reach a liquidity event:
Curious where to find our performance report and statistics on our loan application volume? We post it monthly on the blog here. Happy investing!