Are you making a personal loan to a lender who is using one of his or her notes and deed-of-trusts as collateral?

Ask questions, get referrals, what do they own, why not, how long in business - do they know what creative finance is - can they tell you how it works - what are the benefits to you as a client - do they understand:Seller finance - discount clauses, subornation, substitution of collateral, principal mortgage, performance clauses control and roll conceptssandwich leasesrolling optionsjoint ventureshybrid offersTo mention a few important concepts that an agent, representing you as a client investors,  should be aware of - or be able to discuss the benefits to you and be able to write an offer with the needed clauses to protect you and advise you before and while in negotiations. 

You could use the current property as collateral in case they had concern that you might default.

In the past year, I loaned money to investors that were secured by a property as collateral. 

Can you take out a loan against some other collateral? 

Set up properly and maintained correctly, they should not allow for liability to pass through to yourself or your other entities, as long as funds are not commingled, seperate accounts are maintained, proper legal forms are filed, and loans are not personally guaranteed or cross collaterized. 

with my commercial banks fico was not the driving factor it was experience collateral protection IE equity and Character with gov mit backed loans they could give a rip about character  its all about fico and DTI. 

Im guessing you had to offer no collateral, correct?

Essentially no income details are required and the loan is based off of the collateral of the property and income, calculated using the active rents, appraisal rent schedule or even STR income or projected income.

You would have to find a lender that allows cross collateralization of the properties on DSCR loans and you would have to do a few at a time.