Questions on how lenders deal with loans.

[Jason T.]

Hi all,

I'm doing some research on lending and what it takes to become one, and I have some questions, if anyone is willing to give me some answers, that would be great. I hope they aren't too personal or inappropriate.

When lending, do private/hard money lenders usually do simple interests or more like continuous interest like a bank?

How many loans do they typically give out? Do they need a lot to be sustainable/profitable?

How do they keep track of all these loans?

I assume they would draw up a contract? How are these enforced and what to do when the payments are late?

I think that's all for now. Thanks in advance.