Pasted from Excel $ 50K Per loan average 3 Est funds per year 12% Rate Year Principal Balance + Profit 1 $ 168,000.00   2 $ 336,000.00 (reinvesting principal + interest from prior year)   3 $ 672,000.00   4 $ 1,008,000.00   5 $ 1,344,000.00   6 $ 1,680,000.00   7 $ 2,016,000.00   8 $ 2,352,000.00   9 $ 2,688,000.00   10 $ 3,024,000.00   If my math above is in fact correct, are there resources to learn more about operating as a hard money lender?

Thanks Property Information Cost Information Property Name C Class   Building Cost   $ 34,311         Location Birminham , AL   Land Cost     $ -         Type of Property SFH   Cost Basis     $ 34,311         Size of Property 3,000 Sq Feet   Less Mortgages   $ 25,733         Year Built         Equals Initial Investment $ 8,578                   Amortization Period   30         Ratio Information                             Loan to Value     75%   Mortgage Information               Cashflow / Initial Investment   18%     Balance Payment Interest Loan Term Amtz Period Cashflow / Assets     5%   1st Mtg $ 25,733   $ (138)   5%   30   360 CAP Rate     9%                                             Description(All Figures are Annual) Annual Amount Notes POTENTIAL RENTAL INCOME         $ 7,800   Total Potential Income if rented 100% Less: Vacancy           $ (624)   Assumed 8% Vacancy Factor EFFECTIVE RENTAL INCOME         $ 7,176   Plus: Other Income           $ -   Other Fees, charges, etc GROSS OPERATING INCOME         $ 7,176   Total Revenue                 OPERATING EXPENSES             Real Estate Taxes         $ 535     Property Taxes Personal Property Taxes       $ -     Property Insurance         $ 1,442     Off Site Management       $ 780     Payroll         $ -     Expenses/Benefits         $ -     Taxes/Worker's Compensation       $ -     Repairs and Maintenance       $ 624     Utilities         $ -     Accounting and Legal       $ -     Licenses/Permits         $ -     Advertising         $ -     Supplies         $ -     Lawn and Grounds Keeping       $ 200     Miscellaneous         $ 390                                   TOTAL OPERATING EXPENSES         $ 3,971   Sum of Line 6 thru 23 NET OPERATING INCOME         $ 3,205   Less: Annual Debt Service         $ (1,658)   Total Mortgage Payments CASH FLOW BEFORE TAXES         $ 1,547   Add Back: Principal Payments         $ 371   Principal Paid on Loan - Depreciation           $ (1,144)   Tax Depreciation on Building TAXABLE NET INCOME (LOSS)         $ 775  

Our plan is to roll all of the cash flow toward the principal and pay it off in ~4-5 years.

SPS is not a principal in this transaction so they won’t be doing anything to kick the owners out.   

Find out about closing costs, find about Principal,Interest,Taxes and Insurance aka PITI.

It's unclear if you realize that the "outstanding loan amount" could mean "outstanding principal", "outstanding principal plus missed payments (called "arrears"),  "outstanding principal", plus "arrears" plus legal fees plus unpaid taxes etc.

The first few years of principal payments on a property can make a huge difference with your overall loan balance.

My 15-20K return doesn't include tenant principal pay down, nor does it include appreciation of the asset purchased.

The role of the KP (Key Principal) is what you may be referring to. 

I suppose you could just keep putting away the money each month away as if you had to make monthly principal and interest payments.