As a one-off I don't think it is a huge deal but I wouldn't get in the habit of collateralizing real assets for these especially at variable rates..

It doesn't matter what collateral is used to secure the loan, it matters what the money is used for.

I think the reason brokering itself is still relevant is because not everyone entering the business has capital of their own and they need a low-cost solution in how to make some money.No harm in that.But spending $1,500 on a direct mail campaign to get a 1% response rate and (maybe if I'm lucky) closing 1-2 deals is not my idea of fun.The solution is not to eliminate training people how to broker, but to update it so people can be successful at it. the reason you have different marketing attempts is based on where the collateral is..

Hello BP Community,I'm going to place an offer on an investment property, but I need to secure a collaterized loan (2nd mortgage) on an existing investment property. 

@Eric ThorntonBe careful with using your Ira funds as “collateral” at the brokerage houses.

I used two of my rental properties as collateral assignment for a big a big project with a hard money lender that went bad.The large project was foreclosed on and taken back by the hard money lender.

very nice passive income, but you need to understand the collateral behind.You need to ensure:- invest in notes originated in "non-judicial states" (mainly red states) where foreclosure is fast and inexpensive (do not do it in Illionois)- loan is less than 80% of the property value...

Generally, most traditional lenders will not allow a Qualified Intermediary to acquire and hold legal title to your replacement property if that property will be used as the collateral. 

There will also be a loan documentation fee of $300 due at closing.Prepayment Fee: During the Permanent Period, any portion of the Loan which is prepaid will be subject to a prepayment penalty as calculated below: During first year of loan term 5% During second year of loan term 4% During third year of loan term 3% During fourth year of loan term 2% During the fifth year of loan term 1% Please note the prepayment penalty will not be enforced if the property is sold through an arms length contract.Loan Cost: The cost of the Loan, including, but not limited to, insurance, document preparation, attorney fees and filing fees, will be borne by the BorrowerHazard Insurance: Required on all insurable collateral. 

Instead try to negotiate away cross collateralization of other properties.