Private Lenders for buy&hold rentals
Hey guys, one thing that I am struggling to figure out is how private lending works and how I can utilize it to benefit both parties in a buy & hold scenario.For example, when purchasing a property, you as the buyer have (X) amount for your own contribution, and you will need to find the additional funding to put (X) percent down on the property. Now, once the money is in hand and the purchase has gone through, how can I assure the lender will get his or her money back on top of their charged interest in their requested period of time (6 months-5 years) and, at the same time make sure I am cash flowing at a number that makes sense to me and my investment.
I have no desire for flipping at this time due to my local market but do see some potential in long term rentals. I am unable to get a bank loan due to the building of my credit and my short job history of about 6 months (Just graduated high school) but do feel fully capable of acquiring the knowledge and drive needed to complete my first real estate deal.
Any advice helps and I would love to hear your guys's imput and previous experiences in dealing with private lenders. Thank you for your time!
Ryan Soldano