Home Equity as Collateral for Hard Money

[Keith W.]

Recently, I came across a lender (not sure if Hard Money Company or Private Money) who will provide loans based on the equity you have on your current properties. 

The beauty of it is that you receive all the money at closing (acquisition + rehab). Therefore you don't have to pay to initiate construction then request withdrawals. 

Also, the closing fees and points can be rolled into the loan, meaning you don't have to come out of pocket at all to close a deal. 

If you're interested, I can elaborate on why I won't just use the equity in the home to make the purchase, but for now, my question is does this make sense? For some reason using my home as collateral seems a little scary to me but I don't want fear to make me freeze and not do anything. 

Any suggestions?