Posted by DanM(OR) on March 11, 2000 at 11:53:12:
to add a couple of points. Hard money lenders do it all the time. Call them loan fees or origination fees. Check your local State Department of Finance for the rules.
For Ex. Here in Oregon the Usury Laws state that:
We can charge 0-10 Points (1%-10%) of the loan
We can charge up to 25% interest rate.
In your deals you could loan the $2000 with 10 (10%) points added to the loan. So you finance $2200 for the term. That way you guarantee yourself a better return and have more money out there working for you as David described.
Best of luck to you!