Fund That Flip closed the loan on this property on October 18, 2017. Your investment will begin accruing interest on the day it clears escrow.
Fund That Flip has provided a first distribution of $64,676 to the developer at closing for a loan to purchase of 80.8%. Fund That Flip is holding back $2,224 for 3 months of pre-paid interest.
The construction budget is $40,500. 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. 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 on the percentage of completion of the project. Fund That Flip expects to make 1 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 $61,149 in equity, including an estimated $15,324 at the time of closing. The total loan-to-ARV is 45.2%. There is a 3 month pre-payment penalty, meaning investors will earn interest through January 18, 2018, even if paid back earlier. The term of the underlying loan is 9 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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