How do hard money lenders work?

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I think I may know how hard mony lenders work but I need some clarirty . I have access to REO's with great investment potential. And instead of bird dogging these deals to other investors, I'd like keep these deals and maximize my profit. So I'm thinking of getting a hard money loan. But not to clear on how that works. Could some body explain it to me. and explain it to me as if the house is $200k
and the comps are $300 and up

In general, hard money loans are easy to get if the LTV's are 70% or less. They usually charge 3-5 points for loan origination and 12-18% interest. The term of the loan is usually 6 months or less. It works for a short term project or a project you can refi before the loan is up, but it's expensive.

On your example the LTV is less the 70% so you could get one, but you orgination fees are $6000-$10000 and with the interest payments your profit margin starts to shrink quickly.