Private Loans for Buy and Hold Properties

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I've heard of people flipping houses using private money, usually for a time frame for less than one year. I have not heard about using private lending for an extended period of time.

I'm a recent college grad with about 20k in debt right now and looking to analyze properties in search of a good deal for the future when I do pay my students loans off. However, it seems there is a barrier for many of the good potential properties because of my lack of liquidity. The properties that look good are only offered for cash and not conventional financing.

My bright idea would be to either find someone with enough money to fund a private loan or have someone that I know take out a home equity line of credit to purchase a rental property and then keep the property for the cash flow. From what I have read online, it sounds unlikely that anyone would want to lend money out for a period of 30 years and wait for the rent to pay back the mortgage. Has anyone heard or done a buy and hold property through private lender and paid the debt off using the rent from the property, similar to a mortgage.

Is this a very uncommon circumstance?

Am I Over-Leveraging by doing a deal when I am not using a down payment or a commercial lender?

Do private lenders care if their investment pays out over a period of time?

Would paying the interest up front to someone with a home equity loan benefit the both of us? (In the sense that the private lender gets their profit up front and I slowly pay down the home equity line of credit on the rent.)

Would it be less of a hassle to just save for a down payment and try to get pre-approval for a commercial loan? (This isn't really an option for purchasing a property with cash since it is conventional financing)

I'm trying to think outside the box here, but not sure if I could make this happen. What do you think?

The great thing about “private” lenders is the terms are completely between the two of you. Currently most of my private loans are fully amortized 10-15 years. You just have to find a good enough deal to cash flow with those numbers. Or plan to refinance the property with a bank once it’s stabilized! Anyone can be a private lender, friends and family are the easy ones to ask first, after that it takes a bit more skill.