question about 2nd note and trust deed

[Gary Kurtz]

Forgive me if I've posted this in the wrong forum. I'm reading R. Mike Weese's book 'Janitor to Multi-Millionaire" and I'm trying to wrap my head around the concept of him "...'creating' a 2nd note and trust deed...in the amount of $60,000." to be then used as a part of a down payment for a larger purchase.

In context he 'created' this second note and trust deed from a collection of properties that he owned and was renting. If it's a second note that means the first note and deed of trust was being held by whomever sold him the collection of properties - right? How can he make a second note and then have someone else hold a deed of trust on the same property? Was he in essence loaning himself the equity that he had in the collection of properties to use in helping him purchase the larger property?

I know this is probably a 'stupid' question for many but I'm not used to thinking like this and I'm trying to understand the concept and learn it's application. Thanks in advance!