I am thinking that he is thinking if the loan is not paid off at least the property is used as collateral if the debt cannot be repaid. 

I do have excellent credit and cash to make these purchases and rehab but just need to be put in contact with the right local bank, private lender or anyone that can point me in the right direction at the moment so I can continue purchasing using only the properties and my personal credit as collateral.

Don’t know your financial’s, but you will outstrip your collateralization fast.

When we look at lending, regardless of the applicant being a student or professional, they are evaluated using the 4 C's - Capacity, Capital, Collateral, and Credit.

USDA are the only secondary market loans which may include business assets, such as equipment and stock as additional collateral but are held, not really sold to an open secondary market, depends on the program and area.

Ask questions, get referrals, what do they own, why not, how long in business - do they know what creative finance is - can they tell you how it works - what are the benefits to you as a client - do they understand:Seller finance - discount clauses, subornation, substitution of collateral, principal mortgage, performance clauses control and roll conceptssandwich leasesrolling optionsjoint ventureshybrid offersTo mention a few important concepts that an agent, representing you as a client investors,  should be aware of - or be able to discuss the benefits to you and be able to write an offer with the needed clauses to protect you and advise you before and while in negotiations. 

Like any other loan where there is a property being used as collateral, the appraiser's fees will be charged to the borrower at the time the appraiser visits the property.

Is it 90+ cents on the dollar, or is it lower for collateral worth <$100k?  

Performing notes give great collateral and also deliver high yields.

Not to be confused with the foreclosure remedy scam, equity or collateralization stripping is conducted to safeguard the ownership of real estate assets by making the equity in those assets valueless in the eyes of creditors Read more: Equity Stripping Leaves Creditors Empty-Handed http://www.investopedia.com/articles/mortgages-real-estate/09/equity-stripping-assets.asp#ixzz4gPtJC9yn