Cross Collateral/ Pledge Equity/ Refi - Lions, Tigers, and Bears Oh my

[Jairus King]

Good morning BP Family,

I have been blessed enough to have a property paid off and a few others with considerable equity. However I am looking at the net worth on paper and would much rather see that in my pocket or being exercised to get me to the next level. I have been considering the options and speaking with lenders and was hoping to hear from seasoned folks with 10+ houses that could provide insight on how to get to the next level.  

MY THOUGHTS

I was looking into cross collateral funding. My local bank said no thank you, but  private lender said possible. Essentially how this would work is that they would take the paid off property and finance a new property and then provide a few chips for me at the end of closing. However this is short term funding and I would have to refi- in 12 months. I would also have one loan to pay but two properties in debt. My thought was why would this situation be better than a straight refi to the paid off property and utilize those funds to go after another property? Can anyone share why this strategy may be useful? 

Pledge Equity- This is the sandwich that I was kinda after, but of course have not found yet. The ability purchase a property and pledge the equity in my paid off asset as down payment should I default. Essentially not having to come out of pocket on a new acquisition. Is there anyone out here that plays this game or am I unicorn thinking about possibilities?

I also looked into other means of HELOC and saw that many CC companies are now offering lines. I'm not sure this benefits me as there will need to be a means to pay back that money.... Perhaps after the new acquisition you refi to get the down payment back?

Anyhow was just looking for thoughts on these strategies and how some have continued to get into the 20+ club. Thank you for the time and any input that could add to my thought process.