Fund That Flip closed the loan on this property on May 12, 2017. Your investment will begin accruing interest on the day it clears escrow.
Fund That Flip has provided $83,878 to the developer at closing for an as-is loan-to-value of 74.9%. Fund That Flip is holding back $7,222 for 6 months of pre-paid interest.
The construction budget is $30,190. Fund That Flip will finance $3,900 and will be released to the borrower as work is completed. The construction draws will be made in 3 equal distributions of $1,300 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 $66,634 in equity, including an estimated $28,122 at the time of closing. The total loan-to-ARV is 48.8%.
There is a 3 month pre-payment penalty, meaning investors will earn interest through August 12, 2017, 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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