Be mindful that in order to leverage the land as collateral for the construction loan it will need to be owned out right.

I have a few properties that I would be able to collateralize. 

When you "borrow against", the borrower maintains control over the underlying collateral for the loan.

Hi there, I'm working on setting up a private money deal (I'm the deal provider, they are the cash provider). If I have 2 lenders contributing funds to purchase 1 property, what will the mortgage security document loo...

and given that returns on these are right at 15 to 20% kind of best case for any volume ( granted I know we all hit our homeruns sometimes) but how can you pay that rate and make any money on the delta.. you would need to be buying pretty big tapes and then you would owe them money while your not making any money stabilizing the collateral.. unless their interest payments are on accrual.. ????? 

Another lesson I learned at my local REIA in Berwyn was not to cross collateralize for speculative projects.

(Investing in debt is safer than investing in equity in the same deal, because it has the protection of collateral in a bankruptcy).

Solution: Only close with an experienced closing attorney and always make the borrower get the lender's title insurance.Your collateral (the property) may be worth less than you think - OK, let's assume you definitely are in first position.

But there was collateral on the buyer in case of default, which was a piece of his business.

If so and they are taking the property as collateral this sounds like a standard mortgage situation.