Understanding hard money loans

[Brian Porter]

If anyone could just let me know if I am on the right track here that would be awesome! 

Here is a simple scenario as I understand it:

I find a house with an ARV of $350,000. I offer 70% of that minus $50,000 for repairs bringing a (dream land) accepted offer of $195,000.

Hard money lender most likely gives me up to 70% of the ARV max as a loan or $245,000 (includes rehab costs).

The terms would be:

-30% down - $73,500 

-Loan balance - $171,500

-4 percentage points - $6,860

-15% APR - 6 month project - $12,862.5

Total cost at closing - $80,360 plus origination fees etc...

Total cost of borrowing money $19,722.5

Am I grasping this or am I way off? If this is the case I plan to set aside $150,000 over the next couple of years in order to make sure I have a solid footing before getting into the fix-and-flip game. Does this sound reasonable or should I consider waiting until I have more liquid assets?

I would very much appreciate any input!

Best regards,

Brian Porter