Hard Money Calculations for Dummies???

[Manny Cirino]

So after doing a few wholesale deals I am getting the sudden itch to rehab a house. I just came a cross a lead from a divorced women who is selling here house and the asking price is starting a 50% ARV so I with only cosmetic repairs aside from the water heater and ac unit that were stolen. I know after negotiations I will get it well under 50 percent. I seems like the perfect flip. One I may be able to fix flip and still sell at about 70-75 percent for a quick fat profit. I was thinking hard money may be the way to go since I no my market will allow me to unload fairly quickly.

The question is how do you calculated these loans I have figured out some formulas but I still can understand when the points get charged, and what the payments are monthly. I have found most lenders in my area are requiring 20% down 75% LTV 15% interest and a 4 points this is just one out of like 15 different lenders the. The house is a 4/2 2,600 sqft on 5 acres ARV $158,000 asking price before negotiations is $80,000(I know I could close at about $68K-$73K) and it is not a short sale, listed, or preforeclosure etc...

What formulas do you use?