I rented out that fixer upper, opened a business line of credit using the property as collateral and purchased another rental unit.

Was just wondering if it was possible to refinance it as a "company" and use the appraisal value of the property along with the projected cash flow as the collateral needed for the refinance. 

My question is the following, what assurances (collateral) can I provide to my friend as I am building the house.

Specifically, I own the land outright and I also own another property outright that I intend to put up as collateral.  

The bank wants to make sure that taxes and insurance are paid on their collateral.   

I know as a beginner they are going to be very skeptical of you and might require me to put some more collateral than usually.

You may want to have a local NC attorney who is familiar with foreclosure laws there to review the collateral to confirm. 

@Peter Daniledes From your experience do you think a small bank would consider my condo as collateral?

I'm now looking into larger priced homes so that I can possibly cross collateralize, put more money down into another home. 

But I have had more than one investor I know tell me they took a total loss because their home was vacant more than X days and fine print said insurance did not have to cover.. so there is a vacant home rider U can purchase and which I would think would be appropriate in the NPN business when you take back collateral and have some time to work on it and re purpose it..