Private lending fee structure

[Derek Hookani]

Hi all,

A newbie question here. When a private lender lends out money that comes from their HELOC, they have the cost of interest to lend out that money. Is what they charge normally on top of that cost or inclusive of that cost. Meaning, is it normal for the borrower to pay the amount of monthly interest cost plus whatever rate they ask for or is the rate they ask for normally inclusive of whatever interest they have to pay monthly?

I know with a private lender it's all negotiable but just seeing what is normally done.

Thanks,

Derek