|Underlying Security||1st Position|
The project at 1310 Olive Street is a rehab and the projects at 1134 Laurel Street and 818 Olive Street are both new construction. The construction on all 3 properties has already begun and each project is at a different stage.
Fund That Flip closed the loan on this property on January 14, 2019. Your investment will begin accruing interest on the day it clears escrow.
The developer previously purchased all 3 of the subject properties and has completed a significant amount of construction. The value labeled as the purchase price is actually the appraised as-is value of the portfolio. The value labeled as the expected rehab budget is the total amount of construction left to be completed per an independent 3rd part inspection firm.
Fund That Flip has provided a first distribution of $277,396 to the developer at closing for a loan to as-is of 62.6%. Fund That Flip is holding back $23,063 for 3 months of pre-paid interest.
The remaining construction budget is $430,576. Fund That Flip will finance $429,541 of the remaining construction budget. Fund That Flip disburses construction 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 7 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 $209,701 in equity, including an estimated $165,604 at the time of closing. The total loan-to-ARV is 63.3%. There is a 3 month pre-payment penalty, meaning investors will earn interest through April 14, 2019, 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.