Think a 12 percent loan really costs 12 percent? Think again. On paper, the numbers might look simple, but the way money moves tells a different story. The timing of payments, upfront points, and how interest is collected can quietly change your true rate of return or cost of borrowing. What happens when the math behind a 12 percent loan adds up to something much higher?

In this episode, Rich Lennon breaks down the hidden rate loan structures and how timing, points, and payment collection can dramatically affect yield. He walks through how to understand your true rate of return and spot when lenders are tweaking the numbers. With the right knowledge and transparency, you can gain a real advantage in the lending world. 

You’ll Learn How To:

• Spot how loan terms like prepaid interest and points change true ROI
• Calculate the internal rate of return (IRR) versus the stated annual interest
• Avoid being misled by “lower” advertised rates
• Use transparency as a competitive edge in lending deals
• Educate clients to build trust and long-term business
   

Who This Episode Is For:

• Private lenders who want to understand real returns on their loans
• Real estate investors are comparing lending options and hidden costs
• Borrowers seeking to avoid surprise fees and inflated interest rates
• Anyone who wants to make smarter lending and borrowing decisions
  
  

Why You Should Listen:
Behind every loan lies a story told by numbers. Rich Lennon shows how a few shifts in structure can raise a 12 percent loan to a 17.5 percent cost, and how knowing the math gives you the power to negotiate smarter, earn more, and lend with confidence.

What You’ll Learn in This Episode:

[00:00 ] Greetings from Orlando and the value of education

[01:00 ] How payment timing and points affect loan returns

[02:00 ] The risks of skipping payments and losing compounding

[04:00 ] What makes a 12% loan effectively cost 17.5%

[06:00 ] How educating clients reveals the true cost of borrowing

[08:00 ] The impact of transparency on trust and repeat business

Follow Rich Lennon here:

Website: https://richlennon.com/ 

Facebook: https://www.facebook.com/rich.lennon.121 

Instagram: https://www.instagram.com/richlennon92/