June 2022 Performance Report

Written by Matt Rodak, CEO and Founder | Jul 27, 2022 2:19:52 PM

Fund That Flip is dedicated to industry-leading transparency into our business processes and performance, so we provide our stakeholders and lenders with relevant updates on loan origination and performance, technology updates, and new offerings.

In June, we originated 324 loans, totaling more than $132.8 million in origination volume.

Additionally, as of July 1, 5.81% of our book was 30 days or more late on payments.

	Mar-22	Apr-22	May-22	Jun-22
Days Late	$% of Book	$% of Book	$% of Book	$% of Book
30–60	1.42%	1.35%	1.78%	2.13%
61–90	0.19%	1.06%	0.71%	0.45%
91+	2.45%	1.39%	1.10%	1.31%
Foreclosure	0.38%	1.87%	2.13%	1.92%
Total	4.44%	5.67%	5.72%	5.81%

We’re seeing this increase in delinquent loans for a few reasons:

Several high-dollar loans remain delinquent (with priority on exit and repayment).
Continued supply chain issues and labor shortages contribute to construction delays and eventually, delinquencies.
Uncertainty in the market. For more on the supply and demand affecting this uncertainty, I recommend reading our blog post on the housing market's return to "normal."

As always, we're actively working with our borrowers to keep their projects moving forward, on track, and current on payments.

Our Servicing and Sales teams are in regular contact with each other and borrowers to ensure payments and the project are current, before proceeding with new loans for the same client.
Servicing and Asset Management continue to review delinquent accounts to determine if a notice of default letter needs to be issued — the sooner the better.
Additionally, the Servicing team provides timely updates on loan performance, but also diligently works to ensure as few loans as possible are delinquent longer than 30 days.

Learn more about how we handle loans that are 30+ days late in an episode of Investor Insights here.

We believe it's best to support our borrowers to exit their loans as successfully as possible — even if delinquent or in the foreclosure process — in order to preserve principal and speed to liquidity.

We're also continuing to build a strong forward pipeline even in a somewhat uncertain real estate market, remaining selective on markets to enter and what projects we fund by putting an even stronger focus on appraisals and historic performance. The Fund That Flip operational and business strategy is designed around utilizing a diverse capital stack so we're always positioned to weather market volatility and come out ahead.

Fund That Flip Featured Projects

We are consistently impressed by the quality of work our borrowers are completing with their funded projects. Check out our featured flips and new construction projects, to see before and after photos of highlighted deals from our investment platform.

If you have any questions or would like to provide feedback, email us at investorrelations@fundthatflip.com. We will respond as soon as possible.

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