Search "Subject to" threads, you'll see that an HML is probably the last type of lender you want to cross, considering the loan to value, there are some just waiting for you to mess up and individuals watch thier collateral much closer than a bank would.

But to answer your question, it should be fairly easy to get a short term (like 1 year) loan to be able to pay off Citizens, collateralized by that property or by others.

Ron if you have assets (other real estate) you can cross collateralize or you have a bunch of cash and can escrow big reserves then they might let you go no money down if you have a track record with them.If not some lender will let the owners hold a 10% second up to a 15% second but you would need 10% down or a partner with that.You will also need 10k or so for closing costs and inspections etc. as well as reserves.You will need to ASK what numbers your lender will base averages on for lending purposes??

Securities are defined by the Securities Act of 1933http://www.sec.gov/about/laws/sa33.pdfThe definition is:The term ‘‘security’’ means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a ‘‘security’’, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoingSo, are loans securities?

They have collateral and are not concerned with tapping into your qualified savings, lender's kinda figure that you have already gone through that before they get to foreclosure and it would only be at the tail end when seeking a deficiency judgment that a lender would start looking for your cash, the fact that the reserves can't be touched by a judgment are irrelevant

Lenders lend money based on several factors, one being the value of the collateral which will usually be much more than they will loan.

I'd have to say that I can create an operating agreement that provides for multiple members in different classifications, like preferred and common stockholders, that can facilitate seperate capital accounts, voting rights, collateral assignments, events of withdrawl as well as admitting new members, buyout provisions in the event of certain occurances and authorizations to sell or buy a property.

Bobby, Joel presents a viable option, but my comments about staying away from SBA has to do with the collateral taken on any SBA transaction.

If my tenants suffer an uninsured loss that may have a knock on effect on their ability and/or willingness to pay rent and of course my property may suffer collateral damage from their loss. 

Disadvantage is putting primary residence up as collateral, but we may have enough cash in checking accounts to use that instead.