And in terms of cross-collateral, do you cross-collateralize a SECOND property aside from the one the borrower is investing in?

Does anyone know of a lender whowill lend on collateral as opposed to income?

Still working out the details.Collateral assignment of life insurance has been around for a while, where a bank/lender uses a life insurance policy as collateral for a loan.

The home and one side of the duplex I am updating as we speak, but not enough collateral for a big enough down payment.

The HELOC works like a credit card that is using your property as collateral (although the interest is not calculated like a credit card as it will accrue daily).

But they can also give you other options like HELOCs on your primary residence, a personal loan with other collateral, or a signature loan.

@Edgardo Matos technically yes, however it will likely prove extremely difficult for you to find a bank willing to use a small pIece of land as collateral.

There are two investors that I know of that have taken their note interests invested with us to the bank and obtained a 60% advance rate using their LLC interests in the notes as collateral.

Your loan will depend on the appraised value, since the property is the collateral.

I've grown to learn that not all banks or lenders are the same and they have different appetites for certain types of borrowers, collateral, loan types, etc.I've definitely done BRRRs in my market without seasoning.