I would however be willing to use them as collateral, borrow my seed money (especially if it was non recourse debt) and take leveraged risks for additional cash flow. 

As you may know, hard money guys are more collateral lenders than credit, so having mom on there probably is not an issue with them.

Ideally, you want:1) ROCK SOLID COLLATERAL. 

He pledged the home as collateral for the loan that was used to buy the home.  

The nice thing about this site is that you can negotiate with the seller, have the opportunity to preview the collateral and FCI provides the escrow service to hold your funds until the collateral files are verified by FCI.

As a way to protect their money, the bank forces the sale of the property that was used as collateral for the loan. 

I'm investing in rental properties in Tennessee and have spoken with a local bank for what amounts to a commercial Line of Credit (LOC) with my free and clear properties used as collateral.

Hello everyone I perused the BP community in the forums section to determine if gold as hard assets (with the ability for liquidation) would have application as collateral for doing a real estate deal. 

It looks like a promissory note and a security agreement placing title in trust as collateral for the promise to pay. 

@Trevor Smith private lenders loan you money based on the value of the asset you collateralize in the deal.