I personally signed for these mortgages anyway, so I am thinking it's not that big of a deal.It's my understanding that with the personal guarantee, the properties are basically cross collateralized.

Business lending is still very tight and without collateral and several years of pristine, reviewed or audited financial statements... you are not going to sniff an unsecured loan over $50k much less $500k.

The next step is to increase those investments with customer accounts, leverage them, use them for collateral, then.... startling profits! 

Basically, you are asking about paying off your first property so you can use it as collateral for your second purchase, correct?

If you have $100,000 and do a Conventional loan with 25% collateral, then a $400,000 deal. 

Using properties as collateral for a LOC?

Kirk, you may be getting lien states and title state confused in granting collateral for a loan.

(Life Collateralized Debt Obligations (LCDO)® function similarly to an LCMO® but is used primarily for commercial applications.)

Yes, it smacks as a security to me as well.Your investor could be on the moon, doesn't matter as you presented the offer and where the security (collateral) is located also determines applicable laws.

If it does foreclose, there is sufficient collateral there for the groundfloor investors to be made whole and I personally guaranteed the loan so I'm on the hook for it.