Private/hard money lending for hold strategy

[Joey Webb]

Please forgive me as I am new to the concept of private/hard money lending. My wife and I are new to real estate investing but we have discussed our long term and important goals to us and decided last year on a long term hold investment strategy. Late last year we purchased our first multi-family (duplex) and house hacked it and are now under contract to purchase another this month. We have been using traditional financing thus far but I fear that we are close to our limit on acquiring properties through traditional financing. Thus I am doing my homework and seeking advice in the private/hard money sector. I have heard many of times on BP investors using hard money to do short term deals such as flipping or rehab/rent then sell. I haven't heard how it can fit into the long term hold strategy? I'm sure it is an episode that I missed. My question is this. What would be the exit strategy of using hard/private money for a property we plan on holding on to? Would we use the private money to front the 80% and put 20% down of our own money? Or use private money for the 20% and get traditional financing for the 80%? Then what would the contract/term look like with the private lender for the 20% down? From what I've heard most private/hard lending is short term 6-12 months? Any advice would be appreciated. Thank you.