Fund That Flip closed the loan on this property on August 02, 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 July 21, 2017. The first distribution of $176,729 represents 45.3% of the purchase price of the property of $390,000. Fund That Flip is holding back $21,083 for 3 months of pre-paid interest.
The construction budget is $401,255. Fund That Flip will finance $364,188 of the total construction budget. Fund That Flip disburses constructions 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 the percentage of completion of the project. Fund That Flip expects to make 5 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 developers will contribute an estimated $284,422 in equity, including an estimated $213,271 at the time of closing. The total loan-to-ARV is 59.6%. There is a 3 month pre-payment penalty, meaning investors will earn interest through November 02, 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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