Securing private lender's position

[Lowell Ash]

Does anyone have EXPERIENCE with borrowing from multiple private lenders and securing their interest in the properties that you purchase? I'm looking for a way to give them security in a property that I purchase without naming them as a lien holder on that specific property. The idea is to have them secured each time I buy and then flip a property, but I want to avoid the time-consuming process of naming them on the property, then getting a lien release when I sell the property, only to turn around a do it again on the next property. I'm thinking there must be a way to give them a blanket security interest in any/all properties that I purchase for flipping.

[Ann Bellamy]

You'll need an attorney to give you a definitive answer in your area, but in general, if a lien/loan is secured by a mortgage/deed of trust, the property has to be specified in order for that security to be recorded. Most mortgages include a legal description of the property securing it, not just the address.

The whole point of recording in the registry is that it is specific to the property. Otherwise, if a mortgage or deed of trust could blanket un-named properties, how would anyone be able to provide a clean title free of encumbrances? There would be some mortgage out there floating in the breeze, just waiting to swoop down and declare the property to be encumbered.

You could then sell it off without the title company for the buyer even knowing there was a mortgage on it.

I'm thinking that's not happening in this lifetime. At least not intentionally.