I am very new to real estate investing and I have a question about raising private money and how agreements are structured. From what ive learned, private lenders are looking for the quick return typically (1-3 years). My question is what niches (real estate projects) do investors typically jump into with private lenders taking into account that a lenders capital raised to fund a project must be paid back in a short span? Are only rehab and house flips considered? Does anything long term like a multi family rental work for a private lender as well as the investor? I ultimately thought of an idea to flip and rent but have no clue how I would structure a deal for a lender so that it works in there benefit as well? need help? any information on the topic would be greatly appreciated.
I think you need to decide what you want to invest in before worrying too much about what kind of lender you need. You can use private money for anything. It can be more expensive than using a bank though.
most investors go withprivate money for flips only. the reason for this is that private money tends to cost too much for anyother sort of deal. With that being said, the terms of your private loans are between you and that the lender. If find a lender who will make a long term loan at low interest then you can get into buy and holds with private money but its not overly likely.