No other collateral needed.

Regarding safety: The fund gives investors a cross collateral against all the assets in it, which is over $100Mil in assets and I only $1.5Mil in the fund.

I feel better having the loan collateral than taking the net proceeds to the stock market and add to my IRA.

R Trounday Correct for performing you have services costs (and if you have company hold collateral there cost).

They sign a promissory note with a lending institution and the note is secured the property with a mortgage, thus the property is collateral for the loan.

Is there anyway to finance this acquisition in which the lender will finance 100% of this acquisition and use my current portfolio as collateral for the deal?

Yes...SFR and a multifamily...could I use them for collateral?...

There are ways to mitigate this risk by buying notes that are in states where the foreclosure is simple and quick, like it is in Texas.5.Real estate notes are backed by real estate.The underlying collateral is real estate.

I dispute your characterization of the properties as highly illiquid: while true liquidation is difficult in a downturn, there are products that offer synthetic liquidity, such as cash-out refinancing and HELOCs, as well as collateralized loans against the portfolio, once it reaches a certain size.

(Or even better terms, I've seen $0 down while using another property as collateral)Or buy 1 house at a time all cash.