I did one without knowing the collateral.

It also states that any real estate purchased with the funds will not be used as collateral.  

Created mortgage and note for the private lenders recorded by the title company at the courthouse, with lenders having pro-rata fractional interest in a 1st lien position against the property, with further collateral in the form a personal guarantee by yours truly.Details (Nitty Gritty!)

You can mitigate the appraisal/third party costs by providing a negative pledge on the would-be collateral property and getting an unsecured line of credit.

I'm either going to make a very nice, risk-adjusted return or I'm going to inherit the collateral securing the note.When you sell, you should consider using a Monetized Installment Sale.

You can even do unique cross collateral (purchase/refi combo) where you cash out your existing portfolio while purchasing a few at the very same time.  

For example, a private lender may be able to cross collateralize with the property that you have significant equity in.

Requires 15% equity and needs collateral (other property or business).

Has anyone ever promised or took the position of basically creating a note to pay back if leveraging your poperty as collateral from a private lender? 

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.