This Fund That Flip Review will help you understand more about Fund That Flip’s investment products, including how the alternative investments on Fund That Flip are organized and your potential returns.
You’ll learn whether real estate investment is the right online business for you.
Fund That Flip is a course that teaches you about real estate investing.
If you’ve read my other articles on real estate investing, you’ll know there are 3 primary ways to invest:
Wholesaling, buy-and-hold, and flipping.
While they each have their pros and cons, there is a ton of potential for success in investing in real estate.
Real estate has created some of the largest fortunes in world history.
That being said, you should take some time to think about something seriously:
Is now the best time for YOU to get into real estate investing?
Because despite the potential upside, investing in properties or land takes a lot of capital, and is very labor-intensive.
That means if you:
- Have less than 3 hours per day, OR
- Aren’t sitting on $20K+ in disposable income
This may not be the best time for you to start investing in physical real estate.
Don’t get me wrong, real estate investing can be an amazing way to protect your assets while generating cash – but there’s a time and a place for it.
But there’s good news!
All you need is a system to generate the cash (& free time) you need to be ready for real estate investing.
My preferred method of getting there is by becoming a Digital Landlord
It takes the benefits of real estate investing, but removes many of the barriers (& annoyances), like:
- Small cash flow on properties
- Having to take out debt
- Dealing with repairs and upkeep
- Dealing with tenants
The cool part is that the income is mostly recurring (AKA semi-passive).
You could make anywhere from $2,000-$10,000+ per month doing it.
You can build it as big (or small) as you feel like, without the annoyances I listed above.
If that sounds interesting, you might want to think about becoming a Digital Landlord.
Then, you can take the profits and start investing in physical real estate a year or two from now.
If you wanna see what Fund That Flip looks like on the inside, keep reading.
What Is Fund That Flip?
Fund That Flip is a crowdfunding platform that focuses on residential real estate projects.
What Does Fund That Flip Do?
The company specializes in short-term financing for single-family residences and multifamily complexes for fix-and-flip projects.
Fund That Flip aspires to be the short-term residential crowdfunding market leader. The objective is to provide the finest solutions to borrowers while reducing risk for real estate investors.
The company has provided over $450 million in financing to hundreds of real estate developers in over 25 states.
It’s free to create an account and explore real estate projects and other material on the platform.
The nature of the investment opportunities is the key difference for Fund That Flip. Instead of enabling investors to engage in large-scale commercial real estate developments, Fund That Flip only allows investors to invest in residential rehab projects.
It’s essential to understand that Fund That Flip only invests in debt, not stock.
When you invest in a Fund That Flip project, you become the lender, which means you get paid a set interest rate on the money you lend. You are not purchasing any project’s equity and will not be entitled to a portion of the deal’s earnings, as you would be with a crowdfunding platform that provides equity investments in real estate projects.
Fund That Flip Company Profile
Fund That Flip was founded in 2014 by Matt Rodak, who is currently the CEO. He’s a Chartered Property Casualty Underwriter who has generated over $400 million in capital. The company’s other executives also have a wealth of relevant experience.
Is Fund That Flip A Good Real Estate Investing Company?
Investment platform Fund That Flip is perfect for you if you’re looking for a steady income stream and don’t care about equity development. To put it mildly, the costs are out of reach for most people. Up to 3 percentage points may be eaten away from the accredited investor’s earnings, but the business produces high income with little risk.
Is Fund That Flip A Legitimate Company?
Fund That Flip is a legitimate business.
It is entirely possible to build a profitable, successful real estate business… but there are better ways to build a business other than with real estate.
My #1 pick proves this. Because unlike Fund That Flip, it actually provides real proof of real success from real people as recently as a few days ago.
How Does Fund That Flip Work?
Here’s How Fund That Flip Works For Investors:
Invests In Borrower Dependent Note (BDN)
Fund That Flip investors invest in a Borrower-Dependent Note when they engage in the offering (BDN.) Borrower Dependent Note (BDN) performance is strongly linked to Fund That Flip’s investment in the chosen project’s redeveloper’s note.
Fund That Flip has two products:
Offerings of Series Notes
– for investment in a portfolio of potential projects. Residential bridge note funds and pre-funded note funds are two subtypes of this.
Individual bridge note offerings
– for investing in particular projects (investors may finance the project wholly or partly).
Finance That Flip primarily offers short-term loans (flip loans) with one-year or fewer maturities, although durations may range from three to eighteen months. Borrowers may usually extend their loans for a few months.
Investors get monthly interest payments proportional to the amount invested throughout the loan’s term. The whole principle amount is returned in a single charge when the loan is fully off.
Fund That Flip Loans: Duration, Sizes, And Interest Rates
The bulk of loans offered for investment expires in one year or less, with terms ranging from three to eighteen months.
Borrowers can opt to extend the loan for a few months (for a fee).
Loan Size And Interest Rates
Loan sizes vary from $100,000 to $5 million (with an average loan size of about $300,000), and borrowers pay interest rates ranging from 8.49 % to 12 %.
The minimum investment in a single transaction or fund via Fund That Flip is $5,000.
The loans are interest-only, as is common in the rehab loan business. You’ll get interest payments on the amount of money you contribute throughout the loan’s duration, and your entire principal investment will be refunded in a lump sum when the loan is repaid.
The interest rate spread earned by Fund That Flip is revealed to borrowers on each transaction.
Are Fund That Flip Investments Risky?
Even though debt investments are often thought to be less risky than equity investments, Fund That Flip investments is not.
No investment pays 10% or more in interest that is low risk. The platform takes precautions to ensure the success of its investors by only approving 6% to 8% of real estate projects submitted on its platform. They also require borrowers to put 15% to 20% of their equity into each flip, and it’s still possible that a borrower will be unable to repay their loan.
Fund That Flip Transparency
Fund That Flip is quite open about its monthly performance statistics. Despite periodic fluctuations, the percentage of loans in default or foreclosure is not zero.
Because the loans are secured by the underlying real estate, at least some money is likely to be recovered if a loan fails, although there is still a substantial risk of loss.
Who Is Eligible To Invest In Fund That Flip?
Fund That Flip is currently only available to accredited investors.
What Are Accredited Investors?
Accredited investors are people or companies permitted to trade securities that are not registered with financial authorities.
What Are Examples Of Accredited Investors?
High-net-worth individuals (HNWIs), banks, insurance firms, brokers, and trusts
At Least One Of The Following Criteria Needs To Apply To Become Accredited Investors:
- You have a net worth of at least $1 million, excluding the value of your main residence.
- You earned at least $200,000 in the previous two years ($300,000 if you’re married and filing jointly) and anticipate earning the same this year.
- You’re investing on behalf of a recognized entity, such as a venture capital fund.
Non-Accredited Investors May Be Able To Invest In Fund That Flip In The Future
According to the company, “The SEC has set the criteria under which unaccredited investors may participate in the future. Currently, these regulations prohibit Fund That Flip from commercially investing in non-accredited investors. We will keep an eye on the new law.” – Matt Rodak
Investors may self-accredit to see offers, but Fund That Flip will verify their credentials before making the initial investment.
It’s also worth noting that Fund That Flip accepts investments from self-directed IRAs and other tax-deferred accounts. If you don’t have an account that will enable you to accomplish this, Fund That Flip can recommend a financial advisor on hand to assist you through the procedure. This financial advisor may be a registered broker-dealer or investment advisor.
How Do I Get Funding For Real Estate?
It’s simple. Just go to the Fund That Flip official website and fill up an application form.
Can I Make Money In A Fund That Flip Investment?
Yes, You can!
There’s a lot that comes along with real estate that many people struggle with.
Now, don’t get the wrong idea…
It’s not impossible to make money with real estate, but if you’re gonna put in the amount of grueling work to do this business (which, trust me, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.
The program that helped skyrocket many online businesses to over $40,000+ per month is so simple that making money really does become second nature.
In a word, Fund That Flip is a good option for those who want to generate income rather than capital gain. The platform is a legitimate marketplace for short-term loans that the company has thoroughly vetted.
Just keep in mind that short-term real estate debt investments aren’t precisely “low-risk” income investments, and they may not be suitable for real estate investors with a low-risk tolerance.
Is Fund That Flip A Scam?
So, time for the $1,000,000 question – is Fund That Flip a scam?
No, not technically. You can 100% make money with this program, though it’s not nearly as simple as they make it seem.
As with most businesses, there is A LOT of work to be done upfront & no guarantee of you being successful.
Not to mention the profit margins are typically pretty small.
Don’t get me wrong, I’m a big proponent of front-loading work now, so that you can reap the rewards later.
But if I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.
I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each produce $500-$2,000 checks every single month afterward (AKA recurring income).
And the cool part is that you can do it in a lot less time than 3-months (I personally did it in my first 2 weeks of being a Digital Landlord).
Unlike physical real estate, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.
All you need is an internet connection.
Some of my friends are Digital Landlords that run their 6-figure businesses from:
- Camping trips at national parks
- Beachfront in Hawaii
- On the road in a camper van (with a pet pig!)
They focus on living an enjoyable life first, and focus on income second. All thanks to this program.
They can take weeks or months off, and money keeps rolling in.
Living happily is the top priority.
If the thought of living perpetually at your dream vacation spot interests you, being a Digital Landlord might be for you!
What Is My Top Recommendation For Making Money Online In 2022?
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
It’s worth noting that I FULLY endorse real estate investing to grow wealth, and that’s why I invest my own money in commercial and residential real estate.
That being said, my #1 recommendation for making real money online as a beginner is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie or you’ve been around the block before but have never had that “big win” to propel you forward, becoming a Digital Landlord is for you.
Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all-in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
Real estate investing is a FULL-TIME JOB. If you stop finding deals, your money dries up.
Ownership & Control: Unless you’re buying your properties in cash, you don’t technically own the properties – the lender does.
If you miss a single payment, the property can be taken from you.
Why pour your soul into a business that could be taken away from you at the drop of a dime?
When you’re a Digital Landlord, you literally own all of the assets, which means you have ultimate control.
Ongoing costs: With real estate, profit margins are actually pretty slim. Real wealth is made by owning the assets and owning A LOT of them.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best-case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with real estate investing, you would need twice as many properties, or double your profit margins on each property. And I can guarantee you, that’s a lot harder than a few clicks & a phone call.
Make Money Helping Real People: When you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other opportunities Fund That Flip, which might make you money.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.