Fund That Flip closed the loan on this property on September 21, 2017. Your investment will begin accruing interest on the day it clears escrow.
Fund That Flip is refinancing the property previously purchased by the developer on September 7, 2016. The first distribution of $119,644 represents 43.5% of the purchase price of the property of $275,000. Fund That Flip is holding back $37,156 for 6 months of pre-paid interest.
The construction budget is $694,485. Fund That Flip will finance $467,300 of the total construction budget. Fund That Flip disburses construction funds based on verification of work performed, as determined by an independent 3rd party inspection firm. Fund That Flip reviews each inspection report and releases funds based on the percentage of completion of the project. Fund That Flip expects to make 6 construction draws, but may schedule additional inspections as needed. The final draw will be released after all work is verified to be complete.
Over the course of the project, the developer will contribute an estimated $435,596 in equity, including an estimated $155,356 at the time of closing. The total loan-to-ARV is 38.5%. There is a 3 month pre-payment penalty, meaning investors will earn interest through December 21, 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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