Commercial bankers want you to put 20% down on the investment purchase or they might cross collateralize some property you own (take a first mortgage on that property) to loan the money without the 20% down.

I'm still working on the idea that we have a significant amount of collateral and would compensate them for doing their due diligence.

So I bumped the property value to $35K and the loan amount $25K which was ok, It's a bank foreclosure that's in the redemption period with my Dad, and of course she was frowning on that because she's not familiar with that kind of transaction.She also told me I would need 14K cash at closing, which I told her I had which surprised herShe was trying to get me to do a no collateral loan which of course would be easier but the interest rate is 9.5% for I think 5 years and the monthly payment is $350+....vs. the 30 year which would be $126.She said she has to talk with someone because this is not a conventional loan and she's not sure if she can give me the 30 year....she mentioned gouging??

There is an existing loan on this parcel of land independent of other properties (not cross collaterized)?

The original loan documents seem to indicate that the properties are collateralized at 26% each for 1 & 2 and 48% for 3 for the total initial loan of $325,000.

@Samuel ChuaRecourse just means that lenders can go after the borrower above and beyond the amount of the liquidated collateral of the property. 

@BJ Swing a property being “secured” likely just means they have changed the locks and are trying to keep the property in its current condition to protect the collateral of their note (lenders have the right to do this if a property is abandoned).

I'm assuming I should be looking at things like portfolio or asset loans (or even a commercial LOC) using the equity in the properties as collateral.

However, if you have appreciation or principal pay down, or both, the collateral may still be sufficient.  

Clean, complete books and accounting.If this entity went shopping for a commercial loan or a business LoC, what should its expectations be in regards to interest rate and collateral?