Fund That Flip has provided $152,000 to the developer at closing for an as-is loan-to-value of 80.0%. Fund That Flip is holding back $9,589 for 3 months of pre-paid interest.
The remaining $75,363 is being held back and will be released to the borrower as work is completed. The construction draws will be made in three equal distributions of $25,121 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 $70,353 in equity, including an estimated $50,125 at the time of closing. The total loan-to-ARV is 64.4%.
There is a 3 month pre-payment penalty, meaning investors will earn interest through July 8th, even if paid back earlier. The term of the underlying loan is 6 months with a 3 month option to extend. In the event of an extension, investors will receive their pro-rata share of an additional .5% extension fee.
Project offered by