Private Money for Turn Key Rentals?

[Jacob Theurer]

Hey BP Fam, 

I am a new investor who has recently acquired my first LTR unit. It is a student rental near Ferris State University that is in great shape, no rehab required. I acquired this property with my father using his money for the majority of the down payment. We created an LLC and have a 50/50 split in the property and plan to refi in 5 years to get his cash out with interest. We have enough cash on hand for probably 1 more unit, maybe 2.

My question is, is it possible to find private money for long term rentals where there isn't a quick turn around for a pay out? I'd like to continue to purchase properties that don't need much work (if any) but I will soon need to find OPM to continue to scale. I don't plan on purchasing properties that need a rehab to where I can refi and cash out to pay off lenders. Best scenario is I can pay out lenders in 5-7 years with a refi. Or small installments based on cashflow but I'm assuming that would all but eat up any cashflow I would have in the property until I paid off the lender. 

[Mike D'Arrigo]

@Jacob Theurer I'm not going to say that you can't find someone but it will be hard. Most private lenders don't want their capital tied up that long. I would think that the interest rate would be pretty high also. A typical rate on a short term loan is around 10%. The longer the duration of the loan, the higher the rate normally.