Account Closed I've done well with plenty of $30K houses, granted in my market they usually need another $30k in rehab but when the ARV is $125k-ish it's money well spent.The merits of cheap houses aside, be careful when you cross collateralize anything regardless of property class or value.

If the deal is just smoking then you can put the home your buying as collateral and this will make it a little easier for you.

I had a collateral review company screw me royally with overcharges.

If these are the better properties of the portfolio the bank will want to hedge the collateral position of the remaining properties.Makes me ask what the motivation is, you might ask, if the note payment is not reduced, probably not, and they only get a sliver of the sale proceeds all they are doing is reducing debt which may open their ability to borrow for other purposes, then why sell?

Additionally, I am prepared to offer either a first position on the loan or cross-collateralize with my portfolio of seven vacation rentals, valued at approximately $12 million, with $6.5 million in available equity and generating $1.4 million annually in gross rents.Given the potential of this project, combined with my experience and the collateral available, I seek advice on approaching potential lenders or investors and effectively negotiating terms within such tight time constraints.

When you do it that way the collateral for the loan is more than $75k, as it would be multiple properties and it gets the loan amount in a range where a lender would be interested. 

Until then, the land itself is the collateral, which is then shifted to credits once they're completed and "banked."

And keep in mind lenders at their sole discretion can stop advancing funds if they feel there collateral is in jeopardy   

The members get interest on their loan collateralized by chattel (assignment contracts, houses owned while the LLC is flipping, etc.) and they also get their membership interest in the LLC.I can't emphasize enough the importance of getting a good lawyer that understands Securities in this type of deal structuring.

I'm hoping to pull out $800k-$1m to immediately reinvest and allow for this to even function as a cross-collateralization situation, but even though the risk seems much lower than in other types of lending, I'm not seeing a clear path forward.