In order to create a note there must be a borrower (you or your IRA) and a lender (the person actually giving you the money).

Search here on Dodd Frank ended Lonnie deals and similar threads.Investors will get away with still doing lonnie deals until the borrower reads about DF and decides that paying 3x what you bought it for and 16% interest isn't fair.  

Clearly, charging these fees to the borrower during foreclosure is like kicking a man when he's down :)

Or like what happened to some of my borrowers the PM just collect about 3 months worth of rent and fled with 250k  only to be arrested down the road and go to prison. 

Lately one of my CC's has a 1% fee.I guess they're counting on the borrower not paying it back in the 1 year period, and getting bumped up to the usual 12,9%, but still, 1%... wow...

Does my future "business" ever become the borrower?

We were subsequently able to transfer it when we sold.But we took it back @ $34,000 (DIL of foreclosure after our borrower went broke) & sold it after 4 years of $950/mo rent for $75,000 & still hold the note.

I am not sure if I can borrow against it. 4) We do not have jobs (no W-2s).

It's tough to borrow from people you don't know to do this stuff.

There are a lot of Experienced Rehabbers that will gladly pay good points and high interest rate for HML for a lender that knows how to get deals closed and can be honest on their ability to fund a deal.I've heard Horror Stories where HML in Chicago have come back to the Borrower and asked them to cross collateralize on a deal 2 days before closing...it was the HML being greedy...and nothing is wrong with it, but when you approve a deal, you shouldn't come back with crazy conditions 2 days before closing...Best advice to John is also to consider that is the type of market you are dealing with in regards to HML too...if you don't know what you're doing a HML can cause you to lose your deal by offering "bait and switch" terms...Good Luck!