Hi Angel,A Home Equity Line of Credit (HELOC) is a specific type of credit line that uses your home as collateral.

Otherwise find someone to loan you the money, and use the note as collateral.

(Other financing arrangements might be possible.)You can only obtain one home equity loan per year, even if you have fully paid off the prior home equity loan.Regulation of LendersTexas restricts who may lawfully issue a home equity loan.An unlicensed person is not permitted to make a home equity loan unless that individual is either related with the borrower to the second degree, or is the seller and is providing financing for the property.A home equity loan must be secured only by the home itself, and the lender may not attach the loan to any additional assets as collateral.

Set up properly and maintained correctly, they should not allow for liability to pass through to yourself or your other entities, as long as funds are not commingled, seperate accounts are maintained, proper legal forms are filed, and loans are not personally guaranteed or cross collaterized. 

@Diana JingHere is more information regarding non-recourse loans:https://www.biggerpockets.com/member-blogs/9552/70...All things being equal a non-recourse lender will require more down, higher interest rate, shorter term, etc. given that there only recourse is the collateral.

Is there a way to start your real estate portfolio or a business without having collateral or mixing personal finance’s?

I would like to use it as collateral to borrow 42k from a private lender, interest only payments in the 8-10% range for 12 months.

Now, I don't know if that 1st position would be in the form of a note or a UCC, but either way it would be secured by the property as collateral. 

If Eli operates his business correctly he will personally be fine and given the collateral is an FHA property the transactional costs simply don't justify the added transactional expenses if a risk analysis were run.

**Hard Money Loan**: Similar to private money, hard money lenders can provide quick funding, often using your rental properties as collateral.3.