Fund that Flip

Fund That Flip is a leading online platform for investing in short-term residential real estate debt. Founded in 2014, the company provides financing solutions to experienced real estate redevelopers who purchase and renovate residential properties. Fund That Flip's core offering involves originating short-term loans for fix-and-flip projects, which are subsequently fractionalized and offered to accredited and institutional investors. These loans typically have terms ranging from six to 18 months and offer investors an annual yield of 10% or higher.

Fund That Flip follows a pre-funding model, wherein the company initially funds the loans using its own capital or funds raised through its Residential Bridge Note Funds. This approach enables borrowers to commence their projects immediately without waiting for the loan to be fully funded by investors. As of August 2023, Fund That Flip has helped 1,589 developers finance more than 5,061 projects, originating over USD 2.6 billion in loans.

The company's underwriting process is rigorous, with only 5% of submitted deals being originated. Fund That Flip maintains stringent criteria, such as limiting the loan-to-after-repair-value ratio to 65% and the loan-to-cost ratio to 85%, while requiring borrowers to contribute 15-20% equity in each project to align incentives.

Fund That Flip's business model involves charging borrowers between 1.5% and 3.5% of the loan amount at closing, known as "points." Additionally, the company earns revenue through an interest rate spread, wherein borrowers pay a higher interest rate than what investors receive.

In August 2023, Fund That Flip announced its intention to rebrand as Upright following the 2022 acquisition of FlipperForce, a web-based software platform for redevelopers and builders. The rebranding aims to reflect the company's expanding scope and its goal of providing a comprehensive platform for active and passive real estate investors.