Walk me through a private lending scenario

[Eleena de Lisser]

I've been reading up on private lending and I understand how it works for wholesaling and fix/flipping. (Find private lender, use funds to control, acquire and/or rehab property and then pay off lender with interest after fix and flip.)

My question is using private money for buy and hold. You find a private lender, create terms that are mutually beneficial and then pay a mortgage note for X number of years? I know each private lending arrangement is different, but wouldn't most private lenders be uncomfortable/unwilling agreeing to a 15+year, (low) fixed rate mortgage?

What is typically the exit strategy to getting the private lender paid back in full in a buy and hold situation? Hope for appreciation and do a cash-out refi with a commercial/retail bank within a few years?

I know arrangements with private lenders will vary tremendously, but what would you do if a private lender is willing to lend the full amount of money you require to do a buy and hold transaction, but doesn't want his/her money tied up for longer than 3 to 5 years?

Also, when getting private money to purchase a buy and hold rental, do you borrow extra (and roll that into the total loan amount) to initially fund the property's maintenance reserves?

Thanks in advance for any answers/explanation.