Fund That Flip closed the loan on this property on November 27, 2017. Your investment will begin accruing interest on the day it clears escrow.
Fund That Flip has provided a first distribution of $203,161 to the developer at closing for a loan to purchase of 41.9%. Fund That Flip is holding back $83,151 for 9 months of pre-paid interest.
The construction budget is $626,459. Fund That Flip will finance $625,563 of the total construction budget. Fund That Flip disburses construction 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 8 construction draws, but may schedule additional inspections as needed. The final draw will be released after all work is verified to be complete. The borrower will be drawing down on the construction draw budget in tranches. As they do, Fund That Flip will open additional investments in this offering.
Over the course of the project, the developer will contribute an estimated $404,012 in equity, including an estimated $281,839 at the time of closing. The total loan-to-ARV is 59.4%. There is a 3 month pre-payment penalty, meaning investors will earn interest through February 27, 2018, 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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