I am trying to understand the costs of using a hard money lender. Can someone tell me if this is correct (all numbers are estimates);
Purchase price: 100,000
HML rate: 12.5%
HML loan%: 70%
So at closing my costs would look like this,
30 % of the loan: 30,000
HML points: 4,900
Closing Costs(estimated 7%) 7,000
Total cost to close 41,900
And holding cost would be around 700 a month plus taxes and insurance.
I would need to sell at 110,901 to realize a profit if I sold in the first month.(I know that is not possible and it doesn't include rehab costs, its just so I understand).
Is there right? Is there anything else that I am missing?