Permission 777 below web root - safe?

so i have a cms tool for our admins to be able to upload files to our site…the files are stores below the webroot (/home/ii/files) instead of above (/home/ii/public_html/here)

since the folder is below the webroot, so its not accessible directly through a browser, does anyone then see any security issues with giving the folder 777 permission?

i know above webroot, its a real security threat, but wat about below?
id prefer not to even have 777 anywhere, but the server wont let PHP upload files, make directories and so on unless its 777.

ps - its a dedicated server…any other suggestions would be much appreciated.

thanks!