Hard Money Calculation

[Raj Kissoon]

Hi Everyone,

New to investing, but have been studying and speaking with lenders. I am trying to fully grasp the HML calculation. Assuming I am approved for 65% of the ARV. In speaking with an HML this is basically what I was told:

Asking	$ 100,000
Purchase	$ 80,000
Rehab	$ 15,000
Total	$ 95,000
ARV	$ 115,000
Hard Money Loan	$ 74,750
"Skin in the Game"	$ 20,250

Can someone advise me if I'm doing this correctly?  If so, would the following be correct?  That my "skin the game" would be $0?  Obviously a deal like that would be hard to come by, but for the purpose of this exercise let's assume. 

Asking	$ 100,000
Purchase	$ 55,000
Rehab	$ 19,750
Total	$ 74,750
ARV	$ 115,000
Hard Money Loan	$ 74,750
"Skin in the Game"	$ -

Any help would be greatly appreciated!