The way I have been leveraging is through borrowing from the seller - seller financing.

Good afternoonI am going to carry a note on an investment property.Its short term (3 or 5 yrs), high % (10-12), but rather small amount (9-10k).The guy puts down about 40 % of the selling price.Now to the question - w...

The house is free and clear and I plan to borrow maybe 10k against the house.

Note: Investor and second home borrowers with five to ten financed properties areineligible for cash-out refinance transactions unless all of the delayed financing exceptionrequirements listed above are met.

Are you the original borrower?  

From how I understand it (have not done it yet) if say I borrow 50% and say one half of the profit for the year was 8K.

We'll meet a potential borrower at their properties and then maybe go to lunch or dinner a few times.

that way, you are the first creditor, stepping into the shoes of the bank with rights against the borrower and could then foreclose and wipe out the second.  

This period is different for each investor who purchases the mortgage on the secondary market.I always make a disclosure to the borrower they cannot pay it off in under 6 months but technically there is no contract that says you cannot its just more of a consideration move.If the lender spent a lot of time with you and they get "charged back," they probably arent willing to be as helpful next time....

Ive had a few borrowers with properties up there that were evaluated.