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NEW YORK—Fund That Flip, a peer-to-peer real estate lending platform, has launched a Residential Bridge Note Fund, which will allow investors to invest in short-term real estate backed loans with a company promise that it will put up to $1 million into the fund.
Fund That Flip will initially contribute 10% of the outstanding capital raised until the $1 million maximum has been reached.
Interested investors must put in a minimum of $5,000 into the fund in a portfolio of whole mortgages and borrower dependent notes. According to the company's website, investors can earn up to an 11% annualized yield on their investments. Each note, the company says, has a fixed maturity rate which will give investors "a greater certainty related to principal repayment."
The first offering was oversubscribed shortly after it was launched, the company also reports. Many of the initial investors came from the company's existing database, said Paul McFadyen, manager of single family rental lending at Fund That Flip, said.
"We created the Residential Bridge Note Fund to meet our investor community's overwhelming demand for a diversified pool option. Their input and support for our services has been, and continues to be, integral to our pursuit of creating new and innovative ways to invest in this attractive asset class," said Matt Rodak, the founder and CEO of Fund That Flip, in prepared remarks.
Based in New York, Fund That Flip is an online platform for investing in short-term residential real estate debt. On its website, Fund That Flip boasts that it has funded over 1,350 projects and has repaid over $200 million in principal investments.
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Dan Clark
Dan covers cyber security, legal operations and intellectual property for Corporate Counsel. Follow him on Twitter @Danclarkalm.
