How To Be A Hard Money Lender

I was talking with a hard money lender and surprised by some of the requirements and terms:

Before you get the hard money loan, some of the more interesting requirements:

Must have a company, they won't loan to an individual.
Two personal guarantors
Copy of the Driver's license of the borrower and guarantors

Funding Process:

A. Borrower is responsible for lender's attorney fees, including doc prep, title insurance and recording fees. Lender chooses attorney.

B. Points and interest accumulate and are paid when the house sells.

C. Interest starts on the entire loan amount from the first day of closing, even if draw funds are not released.

D. If closing is delayed, interest will still be charged from the original closing day.

E. Work must be completed before funds are released for that work.

F. Automatic 2-month extensions. One point for each extension. Total 2 extensions to 10 months.

G. At the end of 10 months, another 2-month extension requires borrower to pay all accumulated points and interests. Interest rate goes up to 18%.

H. If loan is not paid in full at 12 months, the borrower will sign a deed in lieu of foreclosure. If not signed, they will start foreclosure process.

The last one - deed in lieu of foreclosure, caught me by surprise. I guess it makes sense, but can you imagine pouring your own time and money into a property only to walk away from it? I spoke with another hard money lender and he said he has acquired a few properties this way, and he said even experienced rehabbers have walked away from properties. Forget tax sales, this seems to be a better use of money.

EDIT: anyone know any you must have a company? Seems like an extra layer if you try to recover your money.