If the homeowner is promised new financing, a straw borrower will then be involved.

Quote from @Jokari Trueheart: HI, almost 11 months ago I purchased 3 duplexes and I borrowed the funds from my personal residence which I took out a equity agreement for the down payment on the investment property, great idea at the time because I have 10 years to pay it off and theres no payment requirement, but , I learned more about the consequence that it takes a large chunk of my equity the longer I take to pay it back, so my goal was to refi cash out the investment property to pay it back but I don't think theres enough equity yet to pull the full $106k needed, I only borrowed $88k but with the equity percentage for one year i'm paying about $18k in equity on top of the amount I borrowed if I pay it off in year one, so I need this paid off ASAP before it increases more.

Quote from @Josh King: I have 2 rental properties I paid cash for years ago and I have never borrowed against them.

So, based on your numbers you could borrow up to 243,750 on property A, but owe 220k, so that would only be 23,750 in borrowable equity. 

It's usually the member/borrower's creditworthiness that is the issue and interferes with approval, not the LLC. 

Access to Cash Value: A properly structured permanent life insurance policy (like an IUL or whole life) can build cash value that you can borrow against for property acquisitions, renovations, or even as a safety net during market downturns. 2.

I am not sure what your financial situation is or if you have a 401K as an option to borrow but this has worked for us. 

You don’t want your lender to go out of business while still holding your construction escrow funds.Can you provide me with the contact info of some recent borrowers?

We’re still waiting for next steps on that one re: borrower repayment or foreclosure.  

Specifics can vary depending on the GSE:» For a Freddie Mac loan file: A copy of the borrower’s most recent, signed US individual federal income tax return is required.»