Borrower Dependent Note
Build your real estate investment portfolio by investing in individual Borrower Dependent Notes with as little as $5,000.
Expand your investment portfolio with income-generating real estate projects pre-vetted by our expert team of experienced Underwriters.
Total control over your portfolio — every region, project, and borrower.
$5,000 minimum investment
3 – 24 month terms
$59M+ interest paid
99%+ principal repaid
10.8%+ average returns
Minimal exposure, instant diversification. Fixed interest and repayment.
$1,000 minimum investment
3, 6, or 9 month terms
100% interest paid
100% principal repaid
10%+ average returns
One investment, multiple projects.
Fixed interest and repayment.
$1,000 minimum investment
6, 9, or 12 months
100% interest paid
100% principal repaid
10%+ average returns
Short exposure. Instant and revolving diversification.
$25,000 minimum investment
Target offering: $20M
Target return: 10%–13%
There are plenty of ways to earn passive income. And like any investment, real estate comes with risk, pros, and cons. But in the last two decades, only returns from investing in private real estate have performed better than equities on a risk-adjusted and absolute basis.
One of the key benefits of investing in real estate is that even in an economic downturn, the asset is tangible and still holds value. Moreover, real estate prices/values have historically surpassed inflation rates. Additional benefits from real estate investing include:
Earn up to 12.25% ReturnsWe’ve paid our investors millions in interest, and repaid more than 99% of principal. Since 2014, investors have earned an average annualized return of more than 10.8% with principal repayment typically in less than 10 months.
Strict Underwriting CriteriaOnly about 6%–8% of all projects submitted for funding meet our underwriting criteria. And unlike many other real estate investment platforms, we originate all of the loans available to invest in.
Downside ProtectionWe pre-fund every deal on our Platform with a first-position mortgage that’s secured by a real asset — the property. In the event the project doesn’t go as planned, your downside is cushioned by the value of the actual property as well as the borrower’s equity.
Our TeamWe’ve been originating loans throughout the U.S. and helping investors earn passive income since 2014. We’re focused on forging long-term relationships with our customers to help them reach their investing goals and create long-lasting wealth. Investors are supported by our Investor Relations team, and our borrowers are supported by local Territory Managers, as well as a dedicated acount team.
TransparencyWe’re dedicated to industry-leading transparency in everything we do, from the information we share in our deal descriptions to updates on our book of business. Take a look here: Performance Report, CEO Blogs, Testimonials
FeesShut the front door. We don’t have any investment fees.
What do I need to do to invest on Fund That Flip's Platform?
Step 1: Create an account and complete your profile as an accredited investor.
Step 2: Read the Private Placement Memorandum and associated sample investor documents.
Step 3: Review and diligence the current projects open for funding.
Step 4: Start investing with project minimums of only $5,000!
Why do I have to be an accredited investor to invest on Fund That Flip's platform?
The investments on Fund That Flip are private placements that are made pursuant to SEC rule 506(c) of Regulation D. In order to qualify for certain filing exceptions, the SEC allows only accredited investors to participate in these types of offerings.
Can I sell my investment?
No. We currently do not offer a secondary market for selling purchased notes at Fund That Flip. Investors should be prepared to hold their investments to maturity, or longer in instances where the underlying note may be extended.
Can I rollover my principal balance?
Yes. When your investment is approaching its maturity date, you will receive emails giving you the notification to rollover your balance or have the money paid to your bank account. Rolling over your balance into a new RBNF, PFNF, or BDN allows you to instantly invest in another product without waiting for funds to settle.
What are the risks of investing with Fund That Flip?
Like any investment, there are risks involved with investing in real estate debt. There are also mitigating factors to help cushion those debts. For example, the market value of the property could drop significantly, reducing opportunity for the developer to make a profit. However, the property is most likely located in a stable market and was purchased at a discount providing downside protection in a falling-price environment. In some cases, the developer may be unable to finish the property in the allotted term length. For this situation, Fund That Flip builds in an optional 3-month extension, approved only if the project is advancing at a satisfactory pace. The extension corresponds with an additional fee to be shared on a pro-rata basis with investors. Prior to investing, you should fully diligence each deal, as well as consult your investment, tax and legal advisors prior to investing. Additional risks for each deal will be outlined with the Offering Materials.
What is passive real estate investing?
Passive real estate investing is what our lenders do: They invest money into an asset with the expectation of generating income. It’s the traditional definition of an investment. The lender’s time is not required to manage or operate that real estate asset. The asset (like a distressed home) is backed by a note and a first-position lien. On the flip side, active real estate investing, or what our borrowers do, means investing both equity and time into an asset to generate income, such as being a landlord or rehabbing a home. Active real estate investors are responsible for any of the following: Sourcing properties for acquisition, getting financing, overseeing construction and contractor teams, and/or managing tenants.
What is an accredited investor?
Accredited investors must meet this criteria: A net worth of at least $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person's primary residence), or Earned an income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year, or A Series 7, 65, or 82 license in good standing.
What will I "own" when I invest in a project on Fund That Flip?
When you invest in a project on Fund That Flip you are investing in a borrower Dependent Note (BDN) or a series of notes. The performance correlates directly with the performance of a note that Fund That Flip invests in with the redeveloper of the project or series of projects you've chosen. The underlying note is typically a first-position mortgage or similar security. While the note that you purchase is unsecured, the terms of your note gives you rights to the proceeds generated from the underlying note that is securing the real estate. Learn more here.
When do I get paid?
All notes have a fixed interest rate and fixed maturity date, so you have greater certainty of repayment when the project(s) is (are) complete.
What fees will I pay?
None. Signing up, browsing projects, and reviewing all other site content is 100% free. While there are no out-of-pocket fees for investors, we do collect a spread on each loan. The interest rate you see for each project is the annual interest rate you collect. We are likely charging the redeveloper 1-2% points more than that in order to service the loan. Our spread is disclosed for each note or series we offer.
Is my investment secured?
While BDNs are technically unsecured debt instruments, each debt offering is secured by a first position lien on the underlying property (the collateral). The reason that BDNs are not technically secured is that the collateral is not pledged directly to the holder of the BDN but, rather, is pledged to the Indenture Trustee under which the investor benefit as BDN holders.
What happens if Fund That Flip goes out of business or files for bankruptcy protection?
To limit the risk of the Company’s insolvency, the Company has granted an Indenture Trustee a security interest in all of the underlying loans corresponding to the BDNs and the related payments. The Indenture Trustee may exercise its legal rights to the collateral only if an event of default has occurred under the Indenture. A complete overview of these mechanics are provided in the Private Placement Memorandum and associated investment documents.
Who is the Indenture Trustee and what purpose does the Indenture Trustee Serve?
Delaware Trust is the company serving as the Indenture Trustee. A key role of the Indenture Trustee in addition to administrative responsibilities is to protect the interests of investors in the BDNs. Delaware Trust and FTF Lending, LLC entered into an Indenture which is a contract between a debt issuer and a trustee that dictates the responsibilities of each party. In the case of an event of default by FTF Lending, LLC under the Indenture, the Indenture Trustee will exercise its rights for the benefit of the holders of the BDNs.
What happens to my BDN if the borrower prepays the loan?
Borrowers are allowed to prepay their loans subject to a minimum number of months of interest which they are required to pay. In the case of a prepayment, investors will receive at least this amount of interest in addition to their principal at the time of prepayment.
Why do you have to verify that I'm an accredited investor?
Under Rule 506(c) of Regulation D, the Securities and Exchange Commission now requires companies to take reasonable steps to verify their investors are accredited. We've partnered with a reputable third party to help verify your status through a non-intrusive verification process.