Fund That Flip, today announced over $2M in seed funding, and the new board appointment of Diversified Trust’s Principal and finance expert Mark Bell. Fund That Flip allows accredited investors to invest in vetted residential real estate rehab loans. The investment will be used to further develop the technology and expand the platform, which helps real estate developers to provide new housing by modernizing, or ‘flipping’ distressed homes.
Fund That Flip’s investment platform connects investors with vetted real estate rehab projects sourced from quality operators around the U.S. Fund That Flip performs diligence on every project and funds each project with their own capital before making it available to a network of accredited investors.
Investors can review all details of the investment online, including third-party appraisals, and select projects that meet their individual criteria. Investors today are able to explore a wide range of projects, investing with a little as $5,000.
“The market for short-term residential loans operates incredibly inefficiently,” said Mark Bell. “Rehab-bers that need the money have a hard time finding quality lenders and investors are looking for a fair risk-adjusted return. Fund That Flip is bringing the two together by leveraging new legislation and smart technology.”
“This asset class offers 10-13% annual yield with 6-12 month hold periods in loans that are backed by an underlying real estate asset. There aren’t many other readily available investment opportunities that have this combination which makes what we’re doing particularly interesting to me,” added founder, Matt Rodak.
Investment in real estate has been transformed since the JOBS Act went into effect in 2013. This legislation makes it possible for private startups and small business to raise capital publicly. A surge in online investment has led experts to predict this industry will exceed VC investment in 2016.
While there have been quite a few new entrants to the online real estate investment market, Fund That Flip is one of the only platforms that is explicitly focused on serving the short-term residential rehab loan market.
“The reality is there are good and hard working real estate entrepreneurs all over the country that provide a valuable service by “flipping” old properties into nice new homes. By giving these professionals access to capital, Fund That Flip is helping to bring these homes back to their former glory, while also creating jobs and positively impacting communities,” said Rodak.
Located in New York City, Fund That Flip was founded in 2014, and graduated from Entrepreneur Roundtable Accelerator in 2015. Fund That Flip provides fast, convenient, affordable capital for experienced real estate developers that buy and rehabilitate residential properties. Using new technology and their broad network of investors allows them to fund deals in as few as 10 days.