This property then is unencumbered and you can use it for equity on your next deal.Option 2:  If they are nice (not a business concept), if one of the houses is worth $350k ($850k less $500k); see if they will release the lien against that house, if they are willing to give you a Zero % collateralized loan on the last two houses for the $500k debt. 

Here is how most work:Rates: 10% to 14% (Most Deals are 12%)Terms: 1 Day - 24 Months (Most Deals are 6 months)Fees: 2-5 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 Max Loan: 70% of After Repair Value(ARV) 100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 10 business days)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

@Francisco Ruiz I would look at a LOC on them first, and if you have a project needing funds lined up just look at getting a second on them.Not your situations, but I have a lender in TN that will use a free and clear property to fund as collateral for a new purchase and can give preferred rates depending on what income tract the property is in as well as funding 100% of acquisition cost on the new property with a .5% origination Lenders are trying to find homes for new loans just hit up your network and see what you can make happen. 

They offer the advantage of not requiring collateral, which can be beneficial for investors looking to keep their existing properties unencumbered.

So for low conversion, we start with simple stuff, adjust marketing collateral and then measure results.

Hopefully if I find a deal that's rock solid I'll pledge that as the collateral and they'll be so fixated on that they won't even remember I'm there lol 

Our U.S. banks won’t use overseas properties as collateral.  

HELOCs can be called for changes in a borrower's circumstances, like death, change in credit risks, collateral value reduced, or often if the lender just wants out they can terminate future advances.

I would assume I am still putting up the lot as collateral.

I owe ~100k on an investment property worth ~300k and I want to cross-collateralize the equity to help buy another property instead of putting down 20-25% cash.