https://efraudprevention.net/embed/cody/Equity-stripping_scams.htmlEquity-stripping scamsEquity stripping is a type of fraud in which a scammer targets individuals who own a valuable asset, such as a home, and convinces them to take out a loan using the asset as collateral.

No, it was secured but apparently he used the same collateral for every loan he took out. 

.: Hello,I have several SFRs that have lots of equity in them and I wondering if anyone used a method of cross-collateralization to pledge the equity as collateral, thus avoiding doing a cash-out refinance or HELOC.

Maybe you can use your duplex as collateral seeing as you don’t have a big down payment?

Although the property is worth way more than the loan we are needing and the secured collateral lien is really a sure safe bet and some easy money for someone willing to take the chance that isn't in it for anything other than to flip their money for profit/wanting to add to their portfolio, this would be an good opportunity for someone just starting out in real estate investment even.

Another we work with will take a new deal that was $500k, they may lend full amountore but they would also need to cross collateralize as well on other assets that would have to be atleast 2-3x value of the property.  

Basically if there is no "living room" and there are no comparable properties with similar square footage and bed/bath count in your area the property becomes difficult to comp or sell and lenders will not be able to use it as collateral for a loan Excellent point.

PadSplit's have been difficult to finance because they are considered modified collateral.

There’s no repayment schedule, no interest, and no risk of foreclosure if the property doesn’t generate enough cash flow to cover payments.No Collateral Risk:With a loan, your property is often the collateral.

Have you ever thought about getting 0% on one property and substituting the collateral to a great property?