Private lender wants to lend, but needs long-term capital gains, what to do?

[Daniel Hart]

My private lender is tired of getting 10% from me because he is a high income earner and with NY taxes he's losing half of what I pay him. He feels he nets closer to 5% with me. He is willing to be creative in any legal way necessary in order to receive his income from me as a long term gain. He is willing to lend a lot more money, and for a long time, if I can solve this problem. I mainly use his money to hold rentals long term.

Does anyone have any ideas how to accomplish something like this? I prefer not to give away part of the ownership in the properties I'm buying, but it's the only thing I can think of right now..