Private money loans can even be obtained on day 1 of closing collateralized against the equity in the home you pucrhased, assuming there is some.  

I leveraged an investment team and the stacked collateral of another property I own.

I talked to another investor who experienced this as well, at the same bank.I have a couple questions: 1) Why and how can a bank collect more than what is owed to them in an event of foreclosure and 2) does this inflated amount recorded on the mortgage lock me out from accessing the equity in the property, if for example I'd like to add a 2nd lien, cross-collateralize the equity or cash out refi someday?

That means your going to have more collateral for the seller to feel comfortable having a separate silent deal.

Scaling- no matter your goal, current size, or timeframe you will run into Collateral or Finance constraints. 

True hard money lenders don’t require a credit check as the property itself stands a collateral for the loan.

I am using the properties to cross collateralize and buy additional units. 

The lender would be using the property currently under contract as collateral as well.  

I was thinking about doing this so my business would have some collateral maybe making it easier in the future to borrow money and start the portfolio.

Most real estate loans will take 30-45 days to close as the banks need to order title work and an appraisal to determine that you actually own or will own the property and to determine that the value of the property is there which is being used as their collateral.