They also asked that two of my free and clear properties be used as collateral on the LOC- making a total of 4 properties as collateral, roughly coming to a 50% LTV against the total LOC available.Any thoughts on this financing scenario?

Cash out PLUS delegate to PM, though cash outs seem to be tough. several banks around here won't do them at all, but they will take them as partial or full collateral on another property.

If one wishes to carry back paper on an asset they own free and clear and later pledge the loan receivables as collateral for a new loan who would they normally contact to loan this money?

Its not a great deal on the renovation being I would be using a general contractor, but for not putting any money down (because Im offering a lot worth 300k as collateral) Im thinking this could be a decent situation.

Aside from income metrics, banks are also pretty obsessed with collateral quality these days, so it will be a good idea to only show them C+ or better, as far as location, and property condition/age.The typical local bank will offer both conventional (the 30-year fixed you're looking for) as well as in-house (portfolio) loans.

Payments made monthly of $600 for the entire duration.Property as collateral, purchase price $70,000.So, Investor gets $100/month for use of their money over 8+ years...thanks,S.

Future marketing issues still exist as well as collateral concerns for some lenders.

They don't pay the government of the gain, that's paid as it's received, most likely they can't invest the proceeds at a higher rate and the collateral they get is the best there is, after all they know the property.

Really if a LLC has sufficient collateral along with the property the personal guarantor should be relieved... any thoughts?

I am just thinking while typing, here is my thought:When you refinance the larger property, assuming you would leave the smaller property financed with the same lender, this refi completely changes the collateral, in the lenders favor.