Would you accept this terms from a Hard Money Lender
Hello BP, I'm trying to execute my first deal, It's going to be a flip and I was wondering whether this is a good deal or not.
Assuming that the following numbers are correct:
ARV- $370K
Investor cost $ $245K
Rehab approx cost $50K
Estimate Gross Profit $ 75K
Approx Net Profit $ 52K
Would you accept the following Hard Money Lender Terms:
Interest Rate 14% and 3.5 Points
Origination fees 4%
Loan Term 6 months
Max Loan Valur 70%
Processing fee - $300
Underwriting fee - $245
Wire funding fee$25
Apprasial $450
Inspection $350
Insp Fee for Draws $174
I will highly appreciate your advice.
Thanks,
Sergio.