Generate my Own Mortgage?

[Thomas B.]

I'm hunting for a local bank to refinance the balance I have on my HELOC and 401K that I used to purchase my 1st rental property and renovate it. The estimated market value is $165K and I have $130K outstanding between the 2 debts. I'm looking for a 30-year fixed rate and all I can find so far is 15-year with higher interest for my current cash-out situation.

I read of a strategy somewhere on BP where I can Write a Promissory Note and a Deed of Trust, to properly segregate the business from my personal finances and that when refinancing, the bank would treat it as any other mortgage. Am I missing anything? Can I do this all myself or do I need an attorney?

Do I need to create an LLC to accomplish this, or is it doable as a Sole Proprietorship?