Can someone “dumb down” this hard money scenario??

[Blaine Cox]

Newbie here looking at a great property but haven’t really caught on to how hard money really works. I get it’s a higher interest rate as well as 2-4 points but if I give an example of a property I’m looking at can someone break it down for me on a first grade level?? Lol.

Home is in a great location on a golf course. I could get it off of a wholesaler for $325,000. It needs about $85,000 for the renovation. ARV would be $530,000 or more based on the comps in the area. I have about $35k cash so obviously I do not have the funds to purchase this property and fix it up. I know wholesalers want cash when purchasing. So my questions are the following:

The 10-15% hard money lenders charge:

How is that calculated and is that a monthly expense on me until the property sells?

The 2-4 points:

Is that percentage based on what the property finally sells for or based on the total amount the hard money lender lends?

Appreciate the feed back. Just trying to really understand the process with hard money.