All you have to do is deal with that person and you have the property as collateral.  

They might agree to some type of workout but they were looking for people who could perform.When an individual borrows on real estate property he signs a Note (which is basically a type of IOU) and a Deed to Secure Debt, or Mortgage (a collateral agreement which gives the lender the right to take the property if the borrower defaults on payment).

I am looking into getting a hard money loan..I want to use my Paid off home for collateral.

. $40k will not get you very far in las vegas or any place west. here in buffalo, we have a good market. the prices stay pretty level for the most part. the killer is the taxes. then again, we have the winter issues too. not only does it get very cold which makes it hard to work on a place, but we have winter about 6 months out of the year.....lol. as far as your credit, pick up a part time job in a field that you have been in before. then, the job is a lateral move, not starting a new job in which you would have to wait 2 years before you could get a loan. second, take $1000 of that $40k and put it into a bank. after a month, go get a $1000 signature loan from that same bank, using the $1000 you have in the bank as collateral. state that it is a short term loan that you intend on paying back in 6 months. then, take that borrowed $1000 and go to another bank and deposit it. after a month, borrow another $1000 from the second bank, again using the deposited $1000 as collateral. continue this with as many banks as you can. when the first note comes due, use borrowed money to pay it off and continue as such with each bank. what you are doing is establishing credit with these banks and soon you will be able to go into any one of those banks and borrow money because you have good credit with them. 

Trust deed investors have also enjoyed appreciation of the real estate assets used as collateral for these loans, with prices on the rise since 2009.What other assets/investments can you think of that provide a monthly interest payment and the return of your principal in 12 to 24 months?

How much cash and/or collateral would we need?

OK this has to do with first lender getting first rights and then before I sign to allow second lender to obtain said collateral, the second lender needs to be the subordinate.

No more, no less.If sale is conducted and auctioneer cries the sale, you are purchasing the right, title and interest of the collateral pledged by the trustor. 

If Bank A wants to loan Sally 100K using her condo as collateral, how can Sally ask Bank B for another 100K using the same property as collateral?

What are you using as the collateral?