I believe if you own the lots (property) you can utilize the property as collateral for a mortgage (as a down payment if necessary).

Amy,That is very good thinking, and if you pledge collateral, everyone will feel excellent about loaning you the money but when you say unsecured people might back away because if your deals go south do you have income to repay the ones that loan you the money.Joe GoreDallas, Texas

So ultimately you can put up the the real estate investment you buy through the Checkbook LLC as collateral but you cannot put up anything else to get a loan.  

Intangible rights to the asset may be another story...https://www.sec.gov/about/laws/sa33.pdf(1) The term ‘‘security’’ means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a ‘‘security’’, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.

Since we are three Partners who work virtually we use Basecamp for project management and Google docs to store collateral and Company files.

If you follow the "collateral" theory of lending, as I do, I make it a point to understand the asset, the liquidation value and the barriers and obstacles to collecting and maximizing yield.If you follow the "emotional equity" theory, as my buddy and author Gordon Moss does in his book, 'Performance Anxiety' then you put much faith in the ability to extract cash flow and yield from the borrower's familiar attachment to the home used as security.Yesterday I attended a conference of court-appointed receivers, who are people empowered to do such things as intercede with collecting rents, cash flows and till taps.

I mean the best thing is to keep what ever they leave behind as collateral and they may possibly return for it.

Sure, I would buy a note like that if the collateral was good.

Everything looks good with the collateral and the process is easy so far. 

Dont you have to have some kind of collateral or anything for a hard money lender to look at you?