In the residential mortgage space, interest is compounded semi-monthly, not in advance and amortization are 25-years or less.

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?

In my defense, the property I wholesaled was legitimately under contract, and I built my buyers list from all of the calls I got from my ad (before I had it sold).

In addition, most residential mortgages (all the fixed ones) compound interest semi-annually.

I continuously run a CAGR (compound annual growth rate calc) including appreciation (my estimates, some validated by refi cash out appraisals). 8.

For example we have 13 RE lawyers in the club and a number of lawyers in other fields who are members, to include two who work in criminal defense What i suggest is that you come to a monthly meeting early and ask around.  

Your situation is compounded by you lack of presence to oversee daily operations.

I will say in quickens Loans defense that I’ve had an awesome experience with two mortgages through them so far.

Sure, I suppose you could boast that you will be getting a cap rate of 25% in ten years time, vs the 8% you might get with those SAME invested dollars this year, but that's not too different from any compound rate that you will get with interest upon interest, is it?

That is defensible as investment income, not ordinary income.