While not immediately liquid, notes can be bought, sold, and even used as collateral.

those are standard rates in the industry... do you get to  see your collateral or ??

Due diligence tracks our progress and identifies any red flags pre-purchase; Borrower Management to track the data relating to the borrower/collateral documents/property; and Legal to track/monitor where we are at with demand letters, trustee sales, etc. 

@Mark RobertsonMark you need to do some research on pacific heights homes in San Francisco - I realize you are from NC and for you $10mil buys a hotel but in Manhattan NY and Pacific Heights/ SF Bay Area $10 mil buys you a decent house with probably no view - these homes have held the best value when the economy pulled back - maybe you should consider getting an 8% in such funds that focus on these areas - the one I mentioned gives you both: cross collateral security blanket and full liquidity - this is not placing the capital you have in one project and waiting for 5 years like apt bldg investing. 

Buy land, get a construction loan for the building, collateral the land to get to 80% ARV.

You signed the note personally, any transfer of the property will note keep a lender from going after you personally in the event of default or deficiency, regardless of who else or where the collateral sits...2.

In order to keep from using my cash I will then establish a secured loc with the subject property as collateral.

The instrument is a pledge of collateral by the borrower, to the lender, to secure the repayment.

This removes the recourse (personal liability) from the borrower but does not satisfy the loan which is collateralized by the property.

Personally, I've bridged, cross-collateralized, substituted security, forced appreciation, and more in order to facilitate timely exit of private capital.