Fund That Flip closed the loan on this property on May 04, 2018. Your investment will begin accruing interest on the day it clears escrow.
Fund That Flip has provided a first distribution of $943,278 to the developer at closing for a loan to purchase of 77.0%. Fund That Flip is holding back $72,222 for 6 months of pre-paid interest.
These units are pre-leased $19,000/year as a student housing unit, the units are guaranteed by parental signature of the students. This building will be converted to student housing and the students will move in once renovations are complete.
The construction budget is $299,500. Fund That Flip will finance $207,500 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 on the percentage of completion of the project. Fund That Flip expects to make 4 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 $472,944 in equity, including an estimated $281,722 at the time of closing. The total loan-to-ARV is 62.5%. There is a 3 month pre-payment penalty, meaning investors will earn interest through August 04, 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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