The developer closed on this property on September 30th , 2015 with funding from Fund That Flip. Your investment will begin accruing interest on the day it clears escrow.
Fund That Flip will provide $164,000 to the developer at closing for an as-is loan-to-value of 80%. Fund That Flip is holding back $6,300 for 3 months of pre-paid interest.
The remaining $39,700 is being held back and will be released to the borrower as work is completed. The construction draws will be made in two equal distributions of $19,850 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 $82,350 in equity, including an estimated $54,450 at the time of closing. The total loan-to-ARV is 62.9%.
There is a 3 month pre-payment penalty, meaning investors will earn interest through December 30th, even if paid back earlier. The term of the underlying loan is 6 months.
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