No IncomeNo Jobbut I hope to 'buy' my first rental, with the rents as my 'collateral' I would like any help, if this has been done. 

Just because the collateral goes away does not mean the debt goes away.It matters if you have "pre knowledge" of a loan against the property.  

We went to a local credit union to inquire about a loan.What we asked for- loan amount: $15,000Term: 5 years @ 6%Building as collateral and personal guarantees from LLC partnersWhat was approved-loan amount: $16,000 Term: 3 years @ 6% brokers fee: $550Loan fee $250Building as collateral and personal guarantees from LLC partnersOur LLC was formed a little over a year ago with the property deeded to it, and has never had any sort of credit line under it's name.

Whether they’ve had previous issues with these companies with regards to getting collateral materials or resolving problems, the general consensus has been, most buyers feel they’re between a rock and a hard place.On the other hand, the loans that are available for bidding have been sold at astronomical numbers.

i have a piece of land appraised at $55,000.00 a year ago. I have a consolidation loan against the property in the amount of $25,000.00. My question is can I use some of the equity in this property as a down payment f...

 I would like to hear  from experienced investors or people that have used there collateral to leverage there money on investment properties. 

For starters, I have no capital for start up, and very little collateral.

Sounds like you're off to a great start.You can pledge the equity in your condo as collateral for your next property. 

But I can understand that banks consider the property over valued as collateral if the buyer gets a 10k "repair allowance" at best and an invitation for fraud in any case.

To the contrary, the borrower has such a duty to preserve the security used as collateral, in this case, a house.