In a world of uncertainty, we promise you can be certain of one thing: At any time of day, teams at Fund That Flip are making every effort to have interest payments made on time and preserve principal repayment to our passive real estate investors.
To date, we’ve returned 99.7% of principal to investors.
Here’s how we do it:
Fund That Flip offers auto-pay via ACH for every single loan. However, it's something borrowers have to opt into; we cannot just enroll them in it. Therefore, we make the auto-pay opt-in discussion part of multiple steps in our loan servicing process:
We pride ourselves on building relationships with our borrowers, communicating transparently, understanding the nuances of each deal, and the goals of their business.
Not only are our teams and local territory managers in close contact with our borrowers on a regular basis, but we also send multiple automated emails counting down:
Every loan has a 10-day grace period to make the monthly payment. Once the payment is late, a 6% late fee is incurred and our relationship gets very close: We call, text, and email the borrower every day. We’re not just harassing them for money — but the language is definitely stronger than our usual reminder emails. Remember, these are experienced real estate businesses we have relationships with. We want to get the payment (and get them on auto-pay), as well as understand why the payment is late, if it may happen again, and what we can do to help.
Again, our goal is always to preserve principal. Rushing into foreclosure on late payments or maturity often doesn’t do that and means we all lose out.
Additionally, once a payment is late (after the 10-day grace period), we begin updating the investment deal page on the Platform to give investors insight into the project’s status and our efforts to rectify the situation.
We update the deal investment page for the following reasons:
We don’t update the deal investment page when a payment is made on time because you are notified by receiving the investment income in your wallet or bank account.
We transfer loans to the Asset Management team for many reasons, but the most common are multiple missed payments (90+ days past due), or if the developer becomes combative or non-responsive. This team focuses solely on keeping a project on track to completion and loan exit, as well as maximum and timely principal repayment.
When a loan is with Asset Management, it can be difficult for our team to get information, but we’re dedicated to providing investors with updates at the very least every 30 to 45 days, including:
Legal action is rarely required, but should a project require it, the Asset Management team will update investors when the Notice of Default letter is issued and other foreclosure milestones are reached.
Each project and borrower are unique, which is why we place so much emphasis on building relationships with our borrower — and investor — clients. This allows us to have transparent negotiations and discussion with our borrowers to determine terms and progress, and communicate that information back to our investors through our Platform. We believe this leads to successful business growth for our borrowers, and on-time payments and principal repayment for our investors.
If you have questions about any of the processes outlined above, please email investorrelations@fundthatflip.com or call 646-895-6090 and we will be happy to provide more information about our process.