Hard Money - Searched and No Answer

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I have someone that I am wanting to do hard money lending for. My realtor told me to structure it as 12% interest for 6 month term, 15% up to 12 months, and 18% to 18 months.

Now my question is, do most hard money lenders take 1% interest only payments per month? So if the deal is 100k, I am repaid 1,000 per month and if it sells in 3 months, I only make $3,000???? That seems like a joke and can’t be right....is it? What am I missing? Who in their right mind would risk 100k for that kind of return?

The typical structure is 1-3 points up front and 8-12% interest only compounded annually. Some require monthly payments some active the interest until the property sells.

Loan period is generally 6-12 months with options to extend for a fee.

Hard money is a commodity these Fay’s and becoming more competitive so we are seeing rates and terms becoming more investor friendly.

Typically a HML will impose points up front and a minimum number of moths that interest is due....4-6. Also they typically charge points, 2-3, for renewing for additional 4-6 month terms.