How to setup a cash-out refi w/ Private Money vs commercial bank

[Brian Kantor]

Hi, everyone! Happy Monday.

A few people in my network are looking for steady low-risk returns that beat today's worthless "High Yield" savings accounts.

As such, they have offered to "be the bank" for me with a cash-out refinance on one or more of my existing properties. They'd charge me equal to or a slightly-higher interest rate than I would from a conventional bank, but they would not charge me the high origination fees or place the same restrictions on me with regards to minimum loan amount. (For reference, one of my rentals is a ~$50k SFH in Detroit, and most banks won't refinance anything worth less than $100k.)

So with that in mind, do any of you have any experience in doing this or something similar? Anything I need to be mindful of? Can anyone refer an attorney who could help draft the loan documents?

Thanks in advance!

-Brian