Howdy @Melonie McCallumYou might see if you can use the first property as collateral for the down payment on another property in leu of getting cash out.

In this case 12,000 per year, 1,000My first question to this lender was You don’t get to keep my 100,000 hostage as a collateral correct?

In addition, I've heard banks won't allow me to use the home as collateral on future deals if the home is held it trust. 

Just about any local bank should be able to use that equity to secure a line of credit or cross collateralize another loan.

A HML is not in the company but makes a loan and can't share profits as a straight lender due to conflicts of interest.Either can be secured by collateral.

Maybe for some cross collateralization and such.Banks will generally loan 50% on land, so keep that in mind when you say "access" your $100k equity, might not be that accessible if you owe $100k on a $200k piece of land.Some of that will depend on its use, though. 

The main funding option which most of our clients love funds up to $200K, No income verification needed, No collateral, and O% interest for 12 to 24 months.

The trustee/successor trust borrows in their fiduciary capacity using equity in the trust-owned real estate as collateral. 

I'd take a close look at how they split the note if they did.Check the collateral, condition and upkeep and value it.I generally find issues with family notes as they are often not really done at arm's length.About the only way out of a fully amortized not is to reduce the principal to entice the borrower to refi it (unless there is a default) and selling it will require a good discount in most cases.

Question: Can I continue to use the value of the land as down payment for the construction on buildings 2 and 3 even after the bank uses the land as collateral for property one?