I am looking to purchase a single family as an investment property using hard money. The assessed value is $240K. The property needs approx. $25K of rehab work.
That being said, I would like to offer 70% of the property value ($170K) minus ($25K), or a total of $150K.
The private lending deal I have is I would pay closing costs and 14% interest on the loan for 1 year. If I am doing my math right, that would be $21K.
My question is, do I also factor the hard money interest into my offer? Meaning taking away another $21K from the $150K, and making a final offer of $130K?
Basically, since this is my first hard money deal, I am not sure if I should factor in the hard money interest into my offer.