The developer bought this property on May 25, 2017 with cash. Fund That Flip will provide funding in the form of a refinance on June 23, 2017. The borrower has already begun work on the property.
Your investment will begin accruing interest the day it clears escrow.
Fund That Flip has provided a first distribution of $241,111 to the developer at closing for a loan to purchase of 80.1%. Fund That Flip is holding back $7,289 for 3 months of pre-paid interest.
The construction budget is $55,000. Fund That Flip will not be financing the construction rehab for this loan but we have verified the borrower’s reserves to be sufficient to complete the project.
Over the course of the project, the developer will contribute an estimated $128,778 in equity, including an estimated $59,889 at the time of closing. The total loan-to-ARV is 58.8%. There is a 3 month pre-payment penalty, meaning investors will earn interest through September 23, 2017, even if paid back earlier. The term of the underlying loan is 12 months with an option to extend for an additional 3 months. Should Fund That Flip choose to grant the extension, investors will earn an additional one-time 0.5% fee on their investment.
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