understanding hard money lending

[Zac Davis]

im trying to understand how hard money lending works. at first i though if you find a lender and he wants 10% you would pay him his money and 10% when you reach the 3 month or 6 month term you set up. But If I'm paying 10% apr then it is $10,000 for a year use of the money. if it is just the time used then it is $833 per month( 10,000/ 12 mns.) unless of course it is compounded monthly, then the amount would be a little more each subsequent month. can anyone explain how a typical hard money loan works? i know its different for every lender but just a basic understanding of how they typically work would be great.