Fund That Flip is refinancing the property previously purchased by the developer. The first distribution of $699,925 represents 81.4% of the purchase price of the property of $860,000. Fund That Flip is holding back $75,075 for 6 months of pre-paid interest.
Fund That Flip closed the loan on this property on August 23, 2017. Your investment will begin accruing interest on the day it clears escrow.
The construction budget is $556,870. Fund That Flip will finance $497,500 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 6 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 $322,020 in equity, including an estimated $160,075 at the time of closing. The total loan-to-ARV is 59.7%. There is a 3 month pre-payment penalty, meaning investors will earn interest through November 23, 2017, 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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