Fund That Flip closed the loan on this property on March 24th, 2016. Your investment will begin accruing interest on the day it clears escrow.
Fund That Flip will provide $58,240 to the developer at closing for an as-is loan-to-value of 80%. Fund That Flip is holding back pre-paid interest of $5,779, which represents interest for the balance of the current month and the next 3 months.
The remaining $101,397 is being held back and will be released to the borrower as work is completed. The construction draws will be made in five equal distributions of $20,280 as work is completed and verified. The final draw will be release after all work is verified to be complete.
Over the course of the project, the developer will contribute an estimated $36,700 in equity, including an estimated $23,000 at the time of closing. The total loan-to-ARV is 64.7%.
There is a 3 month pre-payment penalty, meaning investors will earn interest through June 24th 2016, 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 chose to grant the extension, investors will earn an additional one-time .5% fee on their investment.
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