Interesting article Here are some questions: 1) If a property is paid for, and I deed it to an LLC, is it much of a problem to get refinancing using the property as collateral, even though it is now owned by the LLC?

There are certain situations in which the assignment must be in writing.Assignment of wages Assignment of any interest in real property Assignment of choses of action worth over $5,000 Assignment as collateral for a loan or debt But I've never heard of a federal statute outlawing assignments...

Another route you could go is to find a seller who is willing to sell with owner financing, if needed to sweeten the pot a little you could even add one of the vacant lots as collateral or simply trade them one as a down payment (depending on the LTV you need to get).

The property is collateral for the loan, but its still your loan and your responsibility to pay it completely.If there is a shortage, the lender may try to get a "deficiency judgment" against you for the amount of the shortage.

It seems that most success stories I've read have been spending years building equity/collateral in smaller properties to finally dive into larger ventures.Like stated I have much time to really think this through and research a good game plan but I'm always interested to hear what the experts would suggest of course :lol:

Moved this out of bulk REO since its a more general topic.Isn't this more or less what they're already doing by allowing these banks to use the shakey CDOs and SIVs as collateral for the government loans?

I'm not really sure if a 'note' is something that could be used as collateral for a loan.

They either have a line of credit (which floats) or cross collateralize (offering up equity on paid for properties) or 5 year balloon type loans (15-20 year amorterization).

Once both of you are on title, you should be able to use it for collateral for that loan.

Will cross collateralize for the down of 20% but financials and FICO must be stellar.