What options does private money investor have to make money?

[Tyler Caruso]

I have a friend who is interested in investing in my second rental property. My question is assuming he loans me 30k in a 100k property, what options does he have to actually make money?

Treat it like a mortgage and pay him PI until I can do a cash out REFI? Do most investors do these kind of loans for short term? 3-5 years or standard 30 year amortization? What is the average rate I should be charged to be fair. 

Pay him flat fee for the loan of 30k that has to be paid back within12-18 months?

He has never done this sort of investing before so I want to make sure it's good for both of us.

How would the deal be structured if he actually invested in the project if it were a long term buy and hold rental? 

I searched private money on the forums but i could only find information on how to find private money, etc... 

Any advice is appreciated. I'm basically looking at options he has as investor.

Thanks,

Tyler