The less collateral they have (LOCs) the more you pay.

I'd take a close look at how they split the note if they did.Check the collateral, condition and upkeep and value it.I generally find issues with family notes as they are often not really done at arm's length.About the only way out of a fully amortized not is to reduce the principal to entice the borrower to refi it (unless there is a default) and selling it will require a good discount in most cases.

Any part of a future note payments can be sold for a discounted present value or some smaller lenders will accept about 70% of par for collateral on another loan.

. - Typical APR on is 10-11%- Average Project Time is 1.5-2 Months- Average Time on the Market Until Sold (via retail/FMLS) is 1.5-2 Months- Average Capital Needed Per Project is 150K- Can use Cash or Self Directed IRA and can roll funds over from one project to the next to yield a full year or more of accrued interest- The property itself is used as collateral and lender is in first lien position

Having been both a mortgage banker for 18 years as well as an insurance agent for 3.5 years, I can tell you, the lender has the right to require you to have coverages that secure their collateral.

Havine a collateral interest in such properties is not the same as buying a property just because you went to foreclosure, you'll need to sell it or get a deed-in-lieu and keep it.

A tax assessment is certainly look at at the beginning of an appraisal, as to a range of vaues expected, but has no relationship really in arriving at the market value.Lenders look at tax assessments, more in considering the payment obligation rather than as to a collateral value, but some portfolio lenders in some areas may assume they can always sell at the tax assessment.

Could I use other real property not involved in the loan to act as collateral once I move to second position or from the beginning? 

(UPB was under 30k)I reviewed the JV deal and collateral for the individual as they wanted out of the deal and the JV agreement was a joke and clearly was not written by a lawyer, the website of the company was less than a year old and was deals from another investor. 

They gave out about 2 million dollars to some note brokers without receiving collateral.