This doesnt really apply to 1-4 unit lending unless if its a local or portfolio lender however mostly applicable to 5+ multi family, commercial, and business lending. 5 C's of lending Character (integrity), Capacity(cash flow or ability to service debt), Collateral (equity in property to secure debt), Capital (networth), and Conditions (economy, and external factors)

We put two other properties up as additional collateral to get the original loan on the property.

You can pledge that equity as additional collateral.

Their security doesn't change in the least, their collateral and buyer remain the same.

Originally posted by @Joe Gore: Most lenders like to see a track record, skin in the deal, and collateral.

. :)I was going to leave it at that, but the bank foreclosed on the legal description, the property it held as collateral.

Can I use the equity as collateral to purchase another investment with no money down, or will I need to take a loan out on my first property to get cash for a down payment?

Ideally, you would have some collateral to put up for the loan.My first investor deal was with two guys at work.

That would be similar to Buffet's approach, and could result in significant gains - but many of us would consider to be riskier than a real estate investment where the majority of your collateral is tied up in physical assets instead of inventory/systems that could go obsolete.

Before you give the equity in your home or car as collateral against a Bail Bond take a deep breath and realize that the Bail Bondsman will take a lien against that asset.