Questions for Private Lenders

[Judy W.]

Hi - I am in the process of structuring a private lending deal for $35,000 in Jackson, MS. The borrower has a loan with a hard money lender where the month payment will be doubling every month. I will have an attorney that will draw up the promissory note, deed in trust and run a title report. I will pass on this expense, $1,000 to the borrower. My loan will be a 6-month interest only at 13%, servicing fee of $20.83/month, $50.00 late fee. My question is what is a reasonable amount to charge for points and for a renewal fee, in the event he needs more time? When do you get paid the points - upfront at closing for my loan or can I put at the end of the loan and wait until he pays off my loan or can I add it to the loan? It will be easier on the borrower to pay the points later so it doesn't come out of his pocket early and be a incentive to borrow for me. Thank you for the advice.

Judy