The developer closed on this property on October 29th , 2015 with funding from Fund That Flip. Your investment will begin accruing interest on the day it clears escrow.
Fund That Flip will provide $160,000 to the developer at closing for an as-is loan-to-value of 80%. Fund That Flip is holding back $6,150 for 3 months of pre-paid interest.
The remaining $38,850 is being held back and will be released to the borrower as work is completed. The construction draws will be made in two equal distributions of $19,425 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 $70,300 in equity, including an estimated $54,100 at the time of closing. The total loan-to-ARV is 52.2%.
There is a 3 month pre-payment penalty, meaning investors will earn interest through January 29th 2016, even if paid back earlier. The term of the underlying loan is 6 months.
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