Private money for cash-out Refi?

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Have or do people use private money to do cash out refinances on investment properties?

I’m looking at cash purchase of a Small duplex, with initial plan to cash out refi after the mandatory 6 month seasoning period. However, I’ll be limited to 70% cash out refi by FannieMae rules, and prob looking at 6% refi rate from the bank.

But what if I could find a private money source that would do a private cash out refinance, it would give me the option to do 80% LTV and maybe down to 5% rate??

Thoughts! Thanks!

One of the nice things about cash out refi's is the ability to access your equity and pull money out at a low, long-term fixed rate. I've done it myself and pulled money out of one rental house and used the proceeds to buy another rental house.

In theory, it's possible that a private lender could do a cash out refi on your property. However, in reality, most private money loans are relatively short term and no private lender (outside of your immediate family member) is going to give you a loan at 5% interest.

If you have a long term use for the money, you're better off going though a traditional bank or credit union. You'll get a longer term at a lower rate.