Fund That Flip closed the loan on this property on May 26th, 2016. Your investment will begin accruing interest on the day it clears escrow.
Fund That Flip will provide $276,000 to the developer at closing for an as-is loan-to-value of 77.9%. Fund That Flip is holding back pre-paid interest of $7,245, which represents interest for the balance of the current month and the next 3 months.
The borrower will finance 100% of the construction budget himself.
Over the course of the project, the developer will contribute an estimated $666,730 in equity, including an estimated $94,995 at the time of closing. The total loan-to-ARV is 26.8%.
There is a 3 month pre-payment penalty, meaning investors will earn interest through August 26th 2016, 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 chose to grant the extension, investors will earn an additional one-time .5% fee on their investment.
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