As my business has developed, I have shifted my strategy to a more balanced approach of paying off some properties and utilitizing them as collateral for leveraging.

I know there are many attorneys on this site as well, so jump in here and tell us in anystate in the union where the due on sale clause was the basis for accelerating any note to maturiy arising from a transfer of the collateralized property from the borrower to his/her closely held trust or LLC.....anyone?

Conversely would the liens have been extinguished since there is no collateral left expect for the land .

How would you keep them from overpaying on collateral they want to substitute?

We generally don't get the original app in the collateral package.

I know of some HML that will take another property as the down payment collateral.

Jeff,So far they only appraise when your adding a new property as collateral or trying to raise your limit.Jeff V

Second question is, is there a lender that is ok with a 2nd lien position to secure collateral for equity partners?

I'm assuming you had a pretty solid job before and I either got to a point where you have essentially no debt, a spouse who makes more than enough to pay whatever bills you do have, or have a strong networth that you can use as collateral even if you don't have any form of passive income coming in.

Did you pledge SF rentals as collateral?