If you know real estate well, you can analyze the underlying collateral.

Offered your 7% and cross collateralization?

If you call the MLS office, you can become an affiliate member, just as appraisers are and get MLS access as you want the information to for collateral reviews of loans you made in the past.

When he would see people around town who had outstanding bar tabs, he would get them to offer (read coerced) up some collateral until the tab was paid.

They call it a cross collateralization.

Since you are learning about a property this size to turnaround plus looking at family money as the investment partners that changes the whole dynamic of investing in this property.You have to make sure under any circumstances that this investment will be a success or the collateral damage could live on forever.Whether it is an outside investor or not you should make sure the money is paid back but especially anything with family involved.In a down market cycle that is improving to neutral investors usually want to churn the money as much as possible to pick up the most deals.

This source of funds qualifies as a "cash buy", since the new subject property is not used as collateral.

Are business lines of credit typically collateralized?

Secondary market mortgages are funded by a direct lender and purchased by a wholesaler who blocks the loans which become the collateral for securities, bonds sold and they become securitized.Regulated depository institutions in banking activities are exempt.

That being said, each exit strategy can and will change while buying and waiting for collateral etc..