|Underlying Security||1st Position|
Fund That Flip closed the loan on this property on August 07, 2020. Your investment will begin accruing interest on the day it clears escrow.
Fund That Flip has provided a first distribution of $241,851 to the developer at closing for a loan to purchase of 80.6%. Fund That Flip is holding back $9,424 for 3 months of pre-paid interest.
The construction budget is $47,500. Fund That Flip will finance $32,625 of the total 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 4 construction draws, but may schedule additional inspections as needed. The final draw will be released after all work is verified to be complete. Upon completion of construction, the borrower intends to rent the properties and refinance Fund That Flip's loan.
Over the course of the project, the developer will contribute an estimated $93,547 in equity, including an estimated $58,149 at the time of closing. The total loan-to-ARV is 64.1%. There is a 3 month pre-payment penalty, meaning investors will earn interest through November 07, 2020, even if paid back earlier. The term of the underlying loan is 6 months with an option to extend. Should Fund That Flip choose to grant the extension(s), half of the extension fee(s) collected will be distributed to investors upon receipt. Additionally, Fund That Flip has established a paydown schedule so that as collateral is released, the principal balance of the loan will be paid down correspondingly.