Highly recommend @Lien Vuong she commented below and has helped a lot of our clients start of expand their investment property portfolio. 

You can invest in single-family homes, multifamily properties, land, commercial buildings, and even tax liens, creating opportunities tailored to your investing goals.

In that case, they have no ownership only lien rights.  

Many people have a mortgage on a property where the land value is much greater than the home (aka near the water) and insurance is not able to pay off your entire outstanding mortgage.

Most hard money loans will need to be in first position lien and will generally go up to 70-75% (maybe 80% in certain scenarios) of the ARV.

I have found 1st lien mortgages to be very profitable.

There is no law against getting a second lien either fixed or as a HELOC in Texas (as many believe), as we do them every day.

If it were an outstanding applicant and I was trying to get there business i may try to entice them, but generally I'm going to offer things like discounts on rent if they wanna sign for more than a year.  

Cash out or cash in hand also allows you to avoid having a heloc sit in 2nd lien position and you cannot borrow more money until you pay off the heloc.

Private Lender Partnership: Partner with a private lender or investor willing to take a second lien position to get you to 85-90% cash out.