Using primary residence HELOC to lend money?

[Taylor Green]

Hi,

I was wondering if it was a good idea to lend money from a HELOC on your primary residence?

My thinking is if I own my primary residence free and clear, I take out a HELOC and use it to invest in lending opportunities when the difference in interest makes it worth it...

Ex: HELOC @ 6% vs. Private Loan @ 12%.

In theory, at least to me, this makes sense. I have tried looking for past threads about this and didn't find much on the lending side of it. Is there any downfall to this strategy?

I could refinance, but I just prefer not to have mortgage payments on my primary residence. Thanks.