The developer purchased this property on May 11, 2017 with cash. Fund That Flip will provide funding in the form of a refinance on August 10, 2017. The borrower has already begun work on the property.
Your investment will begin accruing interest the day it clears escrow.
Fund That Flip has provided a first distribution of $102,707 to the developer at closing for a loan to purchase of 77.8%. Fund That Flip is holding back $3,593 for 3 months of pre-paid interest.
The construction budget is $87,550. 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.
Over the course of the project, the developer will contribute an estimated $124,137 in equity, including an estimated $29,293 at the time of closing. The total loan-to-ARV is 29.3%. There is a 3 month pre-payment penalty, meaning investors will earn interest through November 10, 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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