Private lending terms for longterm rentals?

[Brian Kantor]

Hey there. My first property I purchased in all cash, so had no problem obtaining it with my LLC. Now as I look to property #2, I'm looking to other people's money to help me get the cash I need to fund the investment.

As I'm sure that most people in here know, it's tough (impossible?) to get a mortgage or do a cash-out refinance through a traditional bank with a property being held in an LLC.

I've spoken with a ton of hard money lenders who would fund my deal with the LLC, but the interest rates are always super-high. I've found that hard money makes a ton of sense for a fix-and-flip where the holding time of the loan is short, but for a property being held indefinitely, the math just doesnt work.

So, my first question is two-fold:

1. How are other long-term rental investors with LLCs structuring their loans with professional institutions (banks or hard money)?
2. As I do have people in my network looking to invest in my deals, what are fair terms to offer them?

Looking to private money specifically (aka, inexperienced investors looking for a safe investment to make a fair return), I can't seem to make the math work on a loan for anything fewer than 10 years (for this specific property). 

Digging in a little deeper:

1. Are people having luck with private money lenders accepting loan terms of 10+ years? 
2. Or do private money lenders typically walk away with amortization periods so long? 
3. If so, what can make it compelling to them? What sort of annual return is fair? Do you use simple or compound interest?
4. Has anyone had success in doing a cash-out refinance with a private money lender? And if so, how did you structure it?

I ask because, I personally feel that if someone asked me to lend them money for a 10+ years, I probably wouldnt want my money tied up for that long.

Or is my better bet taking out the loan in my name with a traditional bank for now and then coming up with a strategy to move it into an LLC sometime in the future?

Many thanks!

-Brian