Private "Hard Money" Lending - Associated Costs

[Jordan Chiaruttini]

Hi investors!

I have a question about hard money lending - actually probably a few. 

Just as background, I have no experience in investing in real estate.  I was in the lending industry for about 4 years, so I'm pretty well versed in traditional lending.  However, I never dealt with hard money, and only vaguely knew of its existence.  I am now selling houses as a real estate agent as my main source of income. 

When borrowing from a hard money lender, what are the associated costs?  I understand I will pay about 4 pts, give or take, and maybe an admin fee of some sort, which may vary.  Are these costs rolled into the loan?  Also, the interest cost monthly - rolled into the loan and due upon satisfaction of the debt or is this, generally, an "out of pocket" expense that needs to be added onto whatever down payment they are asking for?