:)  We love defaulted note investing - you own nothing but are in control and can exit through the property or the borrower. if you do take a property back you can sell it outright, seller finance it, rent it or BRRR it.

I have a family investor that I will borrow from for the down payment, then finance the rest from the bank.

First you were borrowing at 3-4%.

Many borrowers think they can “cut out” the middleman (mortgage or loan broker), save some upfront “points” and fees, and go direct to a lender.  

If you plan on buying these properties using a mortgage its also best to begin the pre approval process and work with an investor friendly lender to help guide and educate you what the best product might be for your projects to make sure you dont already max out your borrowing power after the first deal.

Not sure, from what you're writing, what the benefit to the borrower was in refinancing, but there had to be something; cash out and lower rate are two that come to mind. 

Borrowers in certain states or with high credit scores may qualify for  80% cash-out , but it’s important to weigh the pros and cons.

Understand the basics of private lendingResearch real estate marketsDetermine your investment strategy and criteria for loans, including:- Amounts- Interest rates- Repayment termsCreate legal documents with a lawyerNetwork with real estate professionalsPerform due diligence on potential borrowers and their projectsBegin with smaller loans to gain experienceMonitor your investments closelyConsider joining a private lending group for additional resourcesStay informed about real estate trends, lending practices, and legal regulations

Much to my surprise, the author himself was not there--so I figured, they just borrowed the copyrighted trademark "rich dad."

If you borrow against the equity, you'll need to include that payment in your calculation, as well.You make 3x the average income for Pennsylvania at the age of 32.