The proceeds could be reinvested into something with better returns or even used to simplify your finances(Like Bettment still offer 4.75% for new customers, and you don't need to do anything!).

I ran my own custom proforma for a bank loan using the asking price that would generate a cap rate over 10% and CoC just under 20%.

After that, the lender may use a private auctioneer to auction off the property and try to recoup as much money as possible.

The private property owner is responsible for maintenance on the private property.

Or how did you figure out the nuts and bolts of how to do private lending? 

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Renovation work throughout both apartments, gutted and refinished the basement as well as extensive work in the private backyard.

Private (hard) money might help with renovation but will be pricey.

I might have a private lender referral that does rural loans in Mid-MO if you're interested. 

I just sent you a private message.