He takes a first mortgage on a paid for property and cross collateralizes the normal 20% down over 15-20 years with a balloon on the other end.

.)* How much value is in the collateral which you've stated is around 40-50k after repairs.* What is the general credit worthiness of the payor?

According to the Federal Reserve, commercial and industrial loans from banks and short-term commercial paper not backed by collateral dropped almost 3 percent over the last year, to $3.27 trillion from $3.36 trillion.

Here is my question: If I pay the down payment and put the land in a family member's name, can I quit claim the property over to an LLC (or to myself) and use the whole land value as collateral for a construction loan?

Most loans are classified by the type of collateral that is taken to support the loan.

IE: If we have a mortgage for 130K at 7.5% for 30 years the monthly payment is $908.98.Potential buyer purchases house from us for $154K at 8% with a monthly payment being $1130.00This creates $221.02 monthly cash flow, the house is occupied and the house acts as collateral if they don't pay.

I am requesting permission to short sale this property to avoid further deterioration of the bank's collateral.

And what about the concept of collateralization for these monies?

.* $500,000 is placed in a small commercial bank as collateral (CD).* Business plan states that commercial bank will loan 80% of all purchases LTV (not purchase price).

So this is just I thought I had of financing.What if I were to take over the mortgages of 2 houses and use them as collateral for a mortgage or loan on a commercial building of apartment building?