Fund That Flip closed the loan on this property on June 29, 2018. Your investment will begin accruing interest on the day it clears escrow.
Fund That Flip has provided a first distribution of $244,829 to the developer at closing for a loan to purchase of 77.7%. Fund That Flip is holding back $7,874 for 3 months of pre-paid interest.
The construction budget is $39,175. Fund That Flip will finance $40,297 of the total construction budget, which includes a small contingency amount above the estimated rehab 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 4 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 $83,922 in equity, including an estimated $70,171 at the time of closing. The total loan-to-ARV is 69.8%. There is a 3 month pre-payment penalty, meaning investors will earn interest through September 29, 2018, even if paid back earlier. The term of the underlying loan is 6 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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