If its a smoking hot deal and you're confident beyond a shadow of a doubt that you can make it work, but trust is the biggest issue and they NEED collateral (I would definitely try to just make it an unsecured loan to get around this securitization issue), offer to collateralized other items you own free-and-clear.

(I'm in CA and she's in NC right now) She wants my ok to go into the bank tomorrow to see if we put the 45k as down payment and used our rental property as collateral, would they finance the rest with a 30 year fixed rate loan, but with us having the intension of paying it off in 15 years.

We also use another company, service in-house the loss mit files and I own half a NPN hedge fund and part of another, neither of which I'm involved with day to day.I was originally trained to look at the collateral from a worst-case scenario and not be reluctant to foreclose.

This is my first go at borrowing funds from a lenders IRA to buy 2nd NP notes and for some reason the concept of using a note as collateral for a prom note is confusing me.

Pallotta is currently working on a Canadian mortgage finance project, but previously worked in the U.S. with distressed collateral and nonconforming securitizations.

I'm sure the mortgages will be considered collateral, but what else should I know? 

Another option is cross-collateralizing your home for the down payment of the multifamily.

I'd then use the free and clear cash flowing properties  as collateral to raise additional private money and lather / rinse / repeat the process.

Quality of collateral file and diligence package?

Whats more important, i feel will, be seasoning time and collateral that stands behind them.