Looking for advice on financing...equity loan vs. private loan

[Catalin B.]

I am looking for an advice from more experienced investors. I am ready to invest and I am contemplating two options:

1-Repackage my mortgage and get a lump sum of money in the form of a new mortgage (existing one + enough cash to invest) for a higher interest rate (between 6.5%-7.5%)...second mortgage not doable (e.g. HELOC type)

• Cons-I will loose the 4.37% interest mortgage that I currently have and forced to pay higher mortgage
• Pros -Total control of the funds

2-Use private lenders/hard money lenders for 12% interest and some points as needed

• Cons-Might be difficult to secure a loan

• Pros-Use these types of loans as needed

Has anyone been through these thoughts?