Right now I havea  commercial loan on the 6, Fannie on the 3,4 units and 3 of the condos and then I recently did a commercial loan @50ltv cross collateralizing the other 5 condos. 

Would you be willing to put up the equity in your properties as collateral for the new loan?  

You get a (insert name) mortage that covers your entire portfolio using the existing properties as equity/collateral and enough cash to purchase the new one.I own property X free and clearI want to purchase property y but don't have enough for down paymentI'm trying to avoid a withdraw from a 401kThanks!

Is hypothecation really only an option with private lenders or are there banks that would use notes as collateral as well?

The net result is that appraisals are coming in low, which further depresses prices and further reduces the value of the banks' collateral.

I just walked in with a list of homes to offer as collateral and the bank was very receptive.

Auto extension agreementsA list of reminder clauses to be used when seller agrees to finance;Subordinated agreement, Early pay-off discount, Substitution of collateral, First right of refusal, Principal mortgage clause, Interest only clause, Delayed payment terms, Seller option to buy back, lease back, Prime rate clause, Stutter clauseThe above is a good place to start when getting into this wonderful business.When you get the lead, be ready to do business.Charles

It basically said that the homeowner defaulted on a loan and the debtor had rights to his collateral (which is preferred units in the LLC and "all cash, securities, payments, distributions and other property at any time and from time to time receivable or otherwise distributed.") 

It can also include any scheme or chain of events constructed or known prior to funding that are executed after settlement that affects the loan or collateral or where, if such events were known to the lender the loan would not have been made.

Another solution for more cash is to borrow the money needed using that note as collateral, they will still be earning a higher rate than they pay to a bank.Point is to learn what the needs are of the seller, meet those needs, structure the note to meet the needs over a longer term, doing so will be the greatest financial advantage for the seller.