Private Financing Deal Structures

[Kevin Reinhardt]

Hi Everyone,

I recently purchased my first rental property on my own and am looking to purchase more; however the next few properties will likely be financed through private money and partnerships. I'm more into the long term buy and hold so I'm looking for feedback on how others typically structure their deals.  I'll be looking for someone to bring the down payment, I'll do all the work, split the profits 50/50. 

What type of exit strategies or provisions have people put in place. Does the private lender cash out with a guaranteed return on their initial down payment (percentage or dollar amount) once there is enough equity in the property?

For context some of the people I know who are potential lenders/partners are significantly older than I am and may not want to stay "in the game" as long as I do and will want to get the return on their investment sooner than me.

Looking forward to everyone's feedback.

Thanks!