So that money gets to count towards the collateral needed for the loan.

However if you have a strong collateral that would help you get better terms.

This is called Cross Collateralization loans.

Market in Cleveland is pretty robust but if this guy is just going to Ghost you your probably a good year or more away from getting your collateral back If its abandoned as the lender you have the right to secure it..

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?