Can someone explain the process of private money lending?

[Robert Ferrell]

Hey everyone!

Newbie here probably asking a very basic question, but nonetheless, I need some clarification. I am trying to figure out how the process of paying back a private money lender works. Now, I'm sure there are many different ways and or methods to structuring a payment plan with your lender, so I am open to any suggestion. 

I don't know much about how payment plans look for private money, but this is generally how I think of it, maybe someone can let me know if I'm close or way off.

So lets say I've got a rental property that brings in $1000 a month in income. After ALL expenses, I am left with a $250 cash flow. And let's say I've borrowed 10k from a private lender and we've agreed on a 10% return for them letting me use their money (so that would equal me having to pay them back 11k, right?) So would I then just subtract a portion of the cash flow to pay to that lender every month until the 11k was paid off? This is where I get confused. Any help is appriciated!