Hard Money question

An investor who I lent a small amount to as a HML for a period of 45 days is in default by 30 days (the property was purchased 40% LTV). The refi info is at the bank, but the bank is delaying the processing for whatever reason. The property was already rehabbed and is now rented. Full payment was to be received on May 15th (principal + 40%).
He mentioned having another HM lender paying me if I wanted, or to draft another promissory note where he will pay interest only until the bank finalizes the refi (should be in the next 30 days)
What would a fair amount be? Should it be monthly…or another lump sum balloon payment?

Anyone want to take a stab at this?

Well, it is up to you really. You said he is a friend… so it is a touchy subject. You said you are already charging him 40%? if so, I am not sure why you want to charge him more.

He’s not my friend…but the friend of an investor I work with primarily. The 40% was because it was a last minute…literally…deal. It was supposed to be repaid within 45 days. He is the one who mentioned paying me interest only payments. I just don’t know want to overcharge him, but at the same time he is in default past 30 days. I don’t want to foreclose, either. This guy does 3-4 deals a week, and I want to keep the door open for future deals.

then 15% interest only payments for 2 more months then foreclose

What area are you in?