Apparently they were satisfied w/ leases, low ltv on collateral propert and good credit.

They would use multiple homes as collateral and take a first position lien against them.  

We are using 100% financing by leveraging raw land we own as collateral.

I'm either going to make a very nice, risk-adjusted return or I'm going to inherit the collateral securing the note.What I'm saying is, there is a middle ground that you may not have considered.

@Andrew Johnson Your and my portfolios are likely fine (with the exception for some collateral damage).

Could the home be used as cross collateral?

The debt investor gets a promissory note and usually some sort of collateral in order to secure the loan.

Perhaps you will find an investment property first and then they will do a loan on the investment property and use your mom's house as partial collateral. 

Environmental Risk: Risk of loss of collateral value and of lender liability due to the presence of hazardous materials, such as asbestos, PCB's, radon, or leaking underground storage tanks on a property.

This ended up costing over $10k between vacancy, attorneys, architects, etc. and also delayed the close of both properties as lender had cross collateralize mortgages.