Basic Term Questions for 1st Private Loan

[Cindy Mastin]

I have always covered my previous investment deals with either cash or conventional financing. This is the first time I'm exploring using private money or hard money. What do you consider to be fair terms when working with a hard money lender?

Interest Rate?

Points/Fees?

Do you recommend interest only (as the buyer)?

How is the monthly loan amount figured? Example: $50,000 on a 5yr. with a 10% interest rate. That would not be $1,000/mo, right? It would be factored over 30 years, correct? This is where I'm getting confused. Figuring out what my monthly payment would be.