Can someone Analyze my Deal

[Rich Hupper]

I have a potential property I want to fix and flip using a hard money loan at the following terms: 4 points, 15% interest rate, LTV 70%.

Purchase Price $415,000 (Acquisition + Skin in the game )

ARV $550,000

Rehab $50,000

Max Loan $385,000 ( .70 x ARV )

Acquisition $335,000 ( Max Loan - Rehab )

Skin in the game $80,000

Purchase closings costs $5000

Purchase Points $15,400 ( 4 points x max loan $385,000 )

Money Needed upfront $104,000

Holding Costs for 180 days

Gas + Taxes + Interest ($28,479) + Water + Electricity + Insurance ~ $34,671

ARV or Sale Price $550,000

Less Realtor Commission @ 2% $11,000 ( I will be listing it on my own )

Less Hard Money Loan $335,000

Less Holding Costs $34,671

Less Closing Cost  $7000

Net Proceeds $162,328.00

Did I do these calculations correctly? Because according to this the hard money lender loses money ( Acquistion + Interest + Purchase Points = $378,879 < $385,000 ) And I am sure they will not tie their money up for 6 months to lose money.

[Jeff B.]

May I suggest not farming out your homework, do the analysis your self, post your work and then let BP analyse your work - - you'll learn more this way.