However the event of default just gives the holder or beneficiary of the security interest the RIGHT to accelerate all payments and call the note due..

Thanks for the feedback—it really makes me step back and think about this whole situation.To answer your question about the hard money loan: I went that route because I needed to close quickly, and hard money was the fastest way to secure the deal.

With over 20 years of experience as a mortgage expert and real estate investment veteran, we leverage our mortgage company to secure below-market financing for our clients, ensuring maximum value and profitability.

Purchase price: $187,000 Cash invested: $15,000 Sale price: $259,000 I got tired of moving place to place and worrying about finding roommate, security deposits and not having enough money to deal with maintaining someone elses home.

New tenant must go through complete vetting, sign the lease, pay security deposit and rent, and move in, prior to the referring tenant getting their $100.

All mortgages contain a “due on sale clause” which states that the lender may, at its option accelerate (call note due) if a transfer of the property securing the note takes place.  

Purchase price: $187,000 Cash invested: $15,000 Sale price: $259,000 I got tired of moving place to place and worrying about finding roommate, security deposits and not having enough money to deal with maintaining someone elses home.

If you're already in a secure financial position, leveraging your equity could be a smart strategy.

However, i'll likely be looking at additional ways down the road to be even more secure for a backup what if scenario.  

For example, I have a main account that is for my holding company, sub-accounts for each property, and sub-sub accounts for security deposits and things like CapEx for each property.