We will be using the land as collateral for down payment on construction loan.

Since this was a small balance loan, we crossed collateral another rental property as added security.

The typical loan will be a Fannie Mae or Freddie Mac loan and it is difficult to avoid down payments for Non-Owner Occupied property.Other investors may use other collateral or lines of credit for down payments.

Many commercial lenders will allow you to cross collateralize this property for down payment funds on another property.

If any collateral is pledged for such a loan it need not be LLC property and it is secured by a UCC filing for personal property.

They would be more likely to make a new loan to a new buyer, and that won't happen with the same collateral any longer.The subject-2 requires the old loan to stay in place.

Sometimes that's a good resource (especially with collateralized lines tied to property you have).

under 50k in any major metro area in the mid west deep south north east.. is generally in a very rough neighborhood... ergo not only the small loan amounts.. lenders don't want the risk of having their collateral torn up

Problem here is that you would want some collateral so you know you're not improving the property and then you get nothing at the end.

I bought a non performing note and am going through the collateral package.