Thoughts on these "beginner fix and flip rates"

[Pat Jackson]

I'm researching getting my feet wet in a number of different ways (live auction tomorrow).  Anyway, considering the possibilities of a flip, here are the rates and points my local lender can provide for a beginner such as myself:

$265,000 sales price

$39,750 down – 15%

$225,250 Acquisition Loan Amount

$50,000 Rehab Budget X 90% = $45,000 Rehab funds available to draw

$380,000 After Rehab Value X 75% = $285,000 is the max total Loan to Value ($225,250 + $45,000 = $270,250 is the Loan to Cost)

Rate for novice fix and flip (no property management, general contractor experience) is 12.49% and 2 pts ($5,405) or 10.49% and 3 pts ($8,107).

90 day minimum interest charge : Term is up to 9 months with a 3 month extension

$270,250 X 12.49% = $33,754 / 12 = $2,812 interest payment per month

From my research on here these are OK but not great.  Thoughts?