Private Money Lender Question

[Noah Davis]

Hello everyone.

I was introduced to the real estate investing/entrepreneurship lifestyle later in my education. I was already enrolled in my master's program when I learned about this whole other world and what success meant. Thanks to my mentor, who introduced me to real estate investing and has led me in my real estate investing education.

I graduate with my master's in May of 2023, and I have spent three years getting my degree, but also educating myself in this business by reading books, listening to podcasts, and creating relationships. Therefore, my goals are very specific. Upon graduating, I plan to move home to be closer to my family and immediately house hack 3-4 unit building. Then move to a 6-8 unit building to have a total of 9-12 units to develop a system. Once the system is developed, I plan to scale more prominent and get a 20-36 unit apartment building. I believe all this is feasible considering the three years of education I have put into real estate and my mentor giving me advice along the way.

With me saying all this, I have one question that I have not been able to get a clear answer to in the books or podcasts I have listened to. I believe it's a simple question and should not be hard to answer, but it presents a challenge for a rookie like me. Buying an apartment building with 20+ units will likely present a challenge considering the average person cannot afford it. Therefore, I will likely have to use private money to fund the deal or at least the 20-25% down payment. My question is, what is the best way to pay the private money lender back? Is it as simple as refinancing your property in a year, or is there something else?

Any information or insight would be appreciated, and thank you.