You may in theory, potentially be able to take a loan out on a balance.I.E. someone has $100,000 in value somewhere(such as a retirement brokerage or brokerage account) that acts as collateral if something goes wrong, towards a loan amount.You would have to speak to a couple of banks to see who would do this and what the interest rate of the loan product would be.I think the likely easier situation would be if there is a distribution taken from the retirement account(taxable income if traditional retirement account) which is then lent to you.

Your asset is the collateral on the leverage, so a cash purchase with a HELOC is 100% debt, but it's also buying leverage because dealing in cash gives us a stronger hand.

Consider the note an IOU and consider the DOT the pledge of collateral.

Good lenders will still need to understand 1) Character (aka credit...which is part of the relationship and knowing the borrower), Capactity (the planned exit strategy and the ability of the borrower to pay back the loan), and Collateral (what happens if the borrower can't/won't pay...how is the lender going to recoup their investment and how long will it take).

In addition to checking out the collateral property, the same way you would when buying an individual note, you also need to investigate the company running the fund.  

Unless you're looking at a commercial property, lenders base their loan to value on the market approach,  I've never seen a lender base financing on another approach and can't think of a good reason to do that for collateral.  

Your question about using notes as collateral for a loan has been addressed in other threads on this forum, even recently. 

And with no collateral, how can an investor feel comfortable the money will be returned (with interest, no less). 

The Fund purchased 11 first position, non-performing notes with $2,519,522 in Unpaid Principal Balance (“UPB”), $3,526,187 in Total Collectible Debt, and $2,391,946 in Fair Market Value of collateralized property.

If it is the collateral file, we send via fed ex.