Fund That Flip closed the loan on this property on September 14, 2016. Your investment will begin accruing interest on the day it clears escrow.
Fund That Flip has provided $46,746 to the developer at closing for an as-is loan-to-value of 74.2%. Fund That Flip is holding back $2,229 for 3 months of pre-paid interest.
The construction budget is $25,000. Fund That Flip will finance $7,725 and will be released to the borrower as work is completed. The construction draws will be made in three equal distributions of $2,041 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 $37,940 in equity, including an estimated $16,254 at the time of closing. The total loan-to-ARV is 60.0%.
There is a 3 month pre-payment penalty, meaning investors will earn interest through December 14, 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 choose to grant the extension, investors will earn an additional one-time 0.5% fee on their investment.
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